Cannabis Holding Companies Offer Diversification & Growth Potential
June 26th, 2019
App, Exclusive, News, Top News
Suppose that you want to invest in a portfolio of cannabis companies. You could purchase an exchange-traded fund (ETF) or build your own portfolio by carefully selecting individual publicly-traded companies. While these are good approaches, you’re limited to publicly-traded companies and the valuations they’re assigned by the market. You can’t access privately-held companies at low valuations, which could offer compelling growth potential.
Cannabis holding companies, or investment companies, are publicly-traded entities that provide exposure to these smaller companies. Often times, these businesses start by providing consulting services to small cannabis companies. They may identify interesting opportunities through these connections and make strategic acquisitions in the space that are either consolidated into their entity or held as investments on their balance sheet.
For investors, cannabis holding companies provide greater diversification since they tend to hold many different companies across the value chain — in a single security. They may also have attractive growth potential since they can acquire private companies and provide the capital and expertise that they need to grow. Down the road, they could spin these companies off to shareholders to take them public as their own entity.
Let’s take a look at some cannabis holding companies, their approach to the market, and what makes them compelling for investors.
STWC Holdings Inc.: Consulting with Equity Agreements
StrainWise Consulting (OTCQB: STWC), better known as Strainwise®, is a complete ecosystem of entities and services supporting the cannabis industry, including capital formation, strategic partnerships, seed-to-sale consulting, design, marketing, and advertising. Through its unique approach to the market, the company creates significant value for cannabis entrepreneurs and businesses around the world.
Click Here to view Video Interview with STWC Holdings President: 7 Minutes with Matt Willer and a Little Cannabis Alliteration — CFN Media
The company’s business model involves three types of contracts:
- Service Only: The company provides services on an annual or monthly basis, which generates recurring cash flow, creates brand awareness for STWC, and opens the door to potential acquisitions in the future.
- Service + Equity: The company provides services in exchange for an annual amount plus a percentage of equity in the business. In addition, the company may have options to increase its equity stake in the future.
- Services + Investment: The company provides services in exchange for an annual amount plus an equity stake in the business, as well as makes a strategic investment and takes a more active role in the business.
The company has already signed contracts in Oklahoma, Puerto Rico, California, and Colorado, including a CBD retail location and dispensary in Oklahoma. In addition to plant-touching businesses, the company recently announced a new joint venture to develop a unique software package for cultivators, manufacturers, distributors, and retailers, that could open the door to high-margin recurring revenue streams.
Click Here to receive a Corporate Deck & Investor Updates on Strainwise®
ManifestSeven Holdings Inc.: Cornering the Supply Chain
ManifestSeven Holdings Inc. (Pending Ticker: MSVN) is focused on becoming the Amazon.com Inc. (NASDAQ: AMZN) of the cannabis industry by cornering the market for supply chain logistics. The company has already built an impressive list of subsidiaries, including Weden, its unified storefront and on-demand delivery retail brand, as well as Hippie Butler, White Coat Hemp Company, CM Smoke Supply, Puff Pack, and others; the Company also recently acquired MyJane, a wellness technology platform to curate cannabis experiences and subscription-based product boxes.
In addition to this supply chain focus, the company established its own real estate investment vehicle, called Vicinity, which is structured as a joint venture between the company and a network of high net worth investors aimed at acquiring, developing, and managing properties leased to licensed entities owned and controlled by ManifestSeven. Vicinity has already backed the acquisition of Oakland and Long Beach facilities.
After receiving shareholder approval to merge with P&P in April, it is only a matter of time before ManifestSeven lists on the Canadian Securities Exchange (CSE). At that point, the company could have a leadership position in the California cannabis supply chain.
Accredited? Click Here to Receive Additional Investor Information
Nabis Holdings Inc.: Entering 18 States in 18 Months
Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) is a Canadian investment company focused on investing in high-quality, cash flowing and strategic assets across multiple parts of the U.S. cannabis industry with the goal of expanding global. But rather than making hands-off investments, the company provides a hands-on approach that assists companies in enhancing their operational pedigree by leveraging top expertise.
The company aims to acquire positive EBITDA, vertically-integrated operators in limited license states with large addressable markets using a combination of cash and equity, along with incentive bonuses. Since sellers take a significant portion of consideration in equity, they are aligned with existing shareholders over the long-term. The company also aims to leverage any potential economies of scale that could be gained by holding related businesses.
Click Here to view Video Interview with Nabis Holdings President Mark Krytiuk: Nabis™ Founders Look to Repeat Success & Build a Leading Cannabis MSO
Nabis’ initial focus is on Michigan — one of the largest medical cannabis states in the country — where it has definitive agreements in place to acquire eight strategically-located properties. In addition, the company has agreements in place in Arizona and Washington State, with the goal of entering ten states in 2019 and 18 states in 18 months. These states include California, New Mexico, Nevada, Ohio, Oklahoma and Oregon.
Click Here to Receive Additional Investor Information
Cannabis holding and investment companies offer investors diversification and growth potential. While investors have many options for building a diversified portfolio, these companies could be suitable for those building cannabis exposure.
For more information on the companies profiled, please visit:
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.