Tag Archives: Marijuana investment

marijuana business; interesting read.

Admin; this is an encouraging read for the male dominated marijuana business.  It looks like the contributions of these ladies will be inspiring to those women that grow, sell both medically and recreationally.

 Debra Borchardt Contributor

I write about the business of marijuana.

BUSINESS 5/28/2015 @ 12:37PM

The Top Businesswomen In The Cannabis Industry

The non-traditional world of the cannabis industry looks very much like the regular corporate world – all men, but these women are out to change that. If marijuana were legalized for general use nationwide, the industry could grow to $45 billion, second only to the beer industry according to MarijuanaBusiness Daily’s 2015 Factbook. As a result, there has been a boom in start-up companies hoping to get into the industry early and the amount of capital willing to fund these companies has increased by 900%. There are some impressive, influential women that have jumped right into the industry with hopes of establishing a strong foothold and breaking down traditional corporate barriers. They are positive, strong willed women and they run their companies “like a boss.” These are the top business women in the marijuana sector.

Emily Paxhia – A co-founder of Poseidon Asset Management, Emily and her brother Morgan decided to get into the cannabis industry after the tragic loss of both parents to cancer. They saw first hand how medical marijuana could have helped ease their parents illness. When she and her brother found themselves out on the west coast, the former New Yorkers saw that the timing was right to strike out on their own and return to their entrepreneurial roots. Paxhia brought to the table ten plus years of work as a brand consultant and market researcher. Emily’s ability to reach out to investors and her brother’s investing skills were the magic for founding Poseidon Asset Management. Along with their third partner Christopher Otchy, the fund was established in January of 2014. Poseidon is hoping to raise $10-15 million dollars in capital this year.

Emily Paxhia of Poseidon Asset Management presenting at the WomenGrow Leadership Conference on May 17th of this year.

Emily Paxhia of Poseidon Asset Management presenting at the WomenGrow Leadership Conference on May 17th of this year.

Jazmin Hupp – WomenGrow was founded in the summer of 2014 by Jazmin Hupp and Jane West. WomenGrow is a national professional network that connects leaders and entrepreneurs in the marijuana industry. The group cultivates female leadership through programs and events across the country. In just a short time the group has grown to 30 chapters nationwide. Hupp is the Executive Director and spends a whopping 35 weeks of every year on the road. “We were attending these cannabis events and we weren’t finding our tribe,” said Hupp. “So we decided to set up these events meant to welcome women into the industry and be the first place they come when they are interested in the industry.” The group is sponsored by companies within the industry and has received commitments from fifty different companies and uses the #First50 to recognize this campaign. The group’s next big event they are involved with is the Cannabis World Congress in New York June 17-19.

Amy Poinsett and Jessica Billingsley – Cannabis software company MJ Freeway  is headed by two dynamic women. Amy Poinsett is the co-founder and CEO and Jessica Billinsley is the other co-founder and COO. Billingsley followed a traditional business path of starting a company when she couldn’t find the product she needed in the marketplace. She had invested in the first licensed marijuana business in Colorado and was asked to choose the software needed to run the business. Nothing existed. That’s when she and Poinsett decided to use their tech backgrounds and create a platform that tracked every gram of marijuana and every dollar, now known as seed-to-sale software. MJ Freeway has 1,000 licenses in 19 states. It is one of the few American companies to translate its product into Spanish and they were also one of the few American companies to attend the World Cannabis Conference in Spain. These girls are going global.

Dr. Lakisha Jenkins – This woman is a powerhouse. She holds a Doctorate in Naturopathy and a BSA in Holistic Nutrtion. She is the founder and CEO of the Kiona Foundation and its subsidiary The Farm’acy, which operate two health cooperatives. She also serves as the founding director and President of Jenasis Cooperative which is a business and employment cooperative. This superwoman is also President of the California Cannabis Industry Associationand serves on the board of the National Cannabis Industry Association. As part of the NICA board Jenkins advocates for responsible business practices and corporate accountability. As President of the CCIA, Jenkins has pushed for regulation of the marijuana industry in California and the group is working with politicians to craft legislation that will cut down on illegal cannabis cultivation and protect those willing to work within new regulations.

Juliana Carella – Carella founded Auntie Dolores in 2008. Auntie Dolores is a line of edible medical marijuana products, whose name is a play on the Spanish term pain. Infused products are a small slice of the medical marijuana world, but when it comes to recreational use, some stores are seeing edible products outsell smoked product. Infused owners expect to see a 65% increase in business this year and if more states legalize retail marijuana, the group will see more increases. Auntie Dolores products are available in 150 dispensaries in California and are hoping to expand to other states. The products consistently contain 10mg of THC and range from savory to sweet products. In addition to the brownies, cookies and nuts, Auntie Dolores also makes pet treats. The company hopes to license its brand and has plans to look for more opportunities with investors.

http://www.forbes.com/sites/debraborchardt/2015/05/28/the-top-businesswomen-in-the-cannabis-industry/

Interesting segway; Canadian mining companies betting on future grow in marijuana production

Companies diversifying into marijuana and purchasing affiliates in United States…

http://www.newyorker.com/online/blogs/currency/2014/06/medical-marijuana-canada-mining-companies.html

MINING’S NEW JOINT VENTURE

POSTED BY GABE FRIEDMAN

mining-580.jpg

This isn’t a great time for small Canadian mining businesses. For the past couple of years, people have worried that China’s economic problems will keep it from buying metals and minerals in big quantities, as it once did, which has lowered prices for some of those commodities. Plus, mine workers are aging and retiring, and there may not be enough younger people to replace them. The combined value of the hundred largest “junior” mining companies—the small ones focussed on exploring deposits, in contrast to “major” companies, which extract the deposits that juniors have analyzed—fell by forty-four per cent last year. As Winston Churchill said, “To improve is to change.” So a couple dozen mining companies are now trying out a sexier business: weed.

Canada started granting its first commercial permits to grow marijuana for medicinal purposes late last year. Since then, at least thirty junior mining enterprises have started diversifying into medical marijuana—“M.M.J.,” for short—or have announced plans to do so.

“As a publicly traded company, we always need a story that’s good enough to raise money on,” Jennifer Boyle, the C.E.O. of Satori Resources Inc., told me. Satori is—or has been, in any case—a gold-mining company. Now Boyle wants to get into pot. “If you can latch on to something you can probably raise money on, i.e., medical marijuana, then why not?” she said. “Because otherwise, your assets are in danger of being bought for next to nothing.”

The fact that exploratory mining and growing marijuana have little in common is, it seems, hardly important. The Papuan Precious Metals Corp.’s stock price rose from two cents to fourteen cents after it announced plans to consider agricultural projects and then hired a marijuana consultant. This month, Papuan agreed to acquire the assets of a pot dispensary in Colorado, where marijuana is now legal for anyone who is twenty-one or older. Other junior companies are experimenting with growing mediums and fertilizers, or looking to provide equipment to growers. “The reason you’re seeing the junior mining companies going to medical marijuana is because there is no money in mining,” Greg Downey, the C.F.O. of Papuan, said. “We look to where the money is going.”

The junior mining companies experimenting with marijuana are not high up in the hierarchy of mining. At the bottom level, there are prospectors, who walk hillsides and fields, kicking rocks in search of minerals and metals. One step up are the juniors: they follow up on prospectors’ finds by conducting more serious studies and sometimes even developing mining sites, with the goal of one day selling their assets to a major mining corporation. Most of the juniors that are turning to pot have market capitalizations of five million dollars or less; they represent only about one per cent of Canada’s estimated three thousand two hundred mining firms.

Major mining companies have had trouble raising capital because of falling commodities prices and a tendency toward cost overruns, which has made it even more difficult for juniors to raise money for their projects, since chances of a buyout are remote. It hasn’t helped that junior mining projects keep failing. There is also an impending labor crisis: in the next ten years, the mining industry will need to replace more than half of its workforce, as current employees retire or depart for more attractive industries. This is problematic both because companies will have to cover those former workers’ retirement benefits and because not many young people choose mining as their profession these days, according to a report by the Canadian government’s Mining Industry Human Resources Council.

The marijuana business isn’t necessarily a panacea. Marijuana remains illegal in Canada, although, since 2001, the federal regulatory agency Health Canada has let residents with a doctor’s authorization possess the plant for personal use. It also granted tens of thousands of permits to grow the drug for personal use or to grow it for someone else’s personal use. Last year, Health Canada became convinced that marijuana was being abused for recreational purposes, announced a repeal of the old growing permits, and started accepting applications for commercial-growing permits instead. (A court injunction put the repeal on hold for the moment, but Health Canada has issued thirteen of the commercial permits. It hasn’t put a cap on how many commercial permits it will grant, but it has said that it has received more than nine hundred applications.) Wagner, the consultant, said that only forty thousand Canadians or so have medical-marijuana prescriptions, a level of demand that a couple hundred growers could easily meet; even if the number of people with prescriptions grows to more than four hundred thousand by 2024, as Health Canada is forecasting, he predicts that this would create only enough customers for an additional several hundred growers. So far, none of the mining companies have been granted a commercial-growing license, although one former mining company is close to merging with a company that owns a license. Many are applying for a license or conducting medical-marijuana due diligence.

Executives at the junior mining companies gave various reasons for why they are well suited to enter the marijuana industry: Downey said that juniors are already publicly listed and therefore have immediate access to capital. Another said that his skill set is in assembling teams, whether it is geologists or pot growers. Boyle, the C.E.O. of Satori Resources Inc., pointed out that her company already has the ticker BUD, which gives it a natural leg up; even now, investors assume that the company is in the marijuana business.

Michael Dehn, the C.E.O. of Jourdan Resources Co., said that he wound up in the marijuana business by happenstance. His company owns several properties in Quebec that it wants to mine for phosphates, a component of fertilizer. It also leases office space in a strip mall in a Toronto suburb, next to a pot grower called ChroniCare Canada Corp. “One day, I was out in the parking lot talking to the guy next door, and I said to him, ‘What do you do?’ ” Dehn recalled. “He said, ‘We grow marijuana,’ and I said, ‘We make fertilizer. We should work together.’ ”

Jourdan and Satori Resources have joined together to excavate and pulverize a small amount of phosphate rock, and they’re partnering with ChroniCare to test whether it could be used to fertilize pot. If it works, the companies would together start selling fertilizer to pot growers.

“We were always going to do fertilizer, and our plan was to target corn or wheat, but we’re still five years away from that, so in the meantime we’ll receive a cash flow,” Dehn explained.

The Canadian market, however, is small. With only thirty-five million people in the country, Dehn and others said that they are thinking about export opportunities. “You kind of look at this as the prohibition period, like when Canada was smuggling alcohol to the U.S.,” he said. Dehn has never smoked pot, but he has heard good things about Canadian-grown marijuana. “For most of my life, this is where you heard the good weed was,” he said. “It’s like France—that’s where you go for champagne.”

Gabe Friedman writes about legal affairs, the environment, and business. He was a Knight-Bagehot Fellow at Columbia University and lives in New York.

Illustration by Dadu Shin.