DENVER, July 13 10, 2022 (GLOBE NEWSWIRE) — Cannabis investors are opening their portfolios to a wider variety of cannabis companies as a reduction in the stigma surrounding the plant, expanding markets and increasingly successful operations convince investors of the viability of the industry, according to the trends identified by KEY investment partners.
When cannabis was legalized for adult use by the states of Colorado and Washington 10 years ago, few investors seriously considered cannabis businesses a solid investment choice. Stigma around the plant, concerns about a federal crackdown and skepticism from early operators have kept many investors at bay.
However, as the industry expanded into new markets and profitable ancillary businesses emerged, more investors began to take notice. More recently, an accelerating rate of market expansion and a growing consensus that federal legalization is inevitable have motivated investors to broaden their perspective on the industry. Historical fears about companies hitting plants are fading, according to KEY Investment Partners, which has seen a shift in polarity with the vast majority of its investors. Today, more than 90% of key investors are becoming more comfortable with plant-touching businesses in addition to their ancillary investments.
“After a decade of growth and development, the cannabis industry has demonstrated its longevity and potential and investors are taking notice,” said Tiby Erdely, founding partner of KEY investment partners. “Of course, that doesn’t mean there aren’t challenges for the industry yet. But some of the big issues that caused early concern — like stigma and uncertainty about the federal government — are easing. The growing acceptance of cannabis products among mainstream Americans is also having an impact. Today, we recommend moving to a more balanced approach between ancillary and plant-related activities. »
Consumer behavior has been instrumental in increasing investor interest in plant-based companies. Annual cannabis sales figures continue to break records year after year, with global sales in 2022 expected to reach more than $35 billion, according to BDSA, a KEY portfolio company. Despite challenging economic conditions, the largest MSOs are still performing well in 2022. Driven primarily by expansion into new stores and new product launches, first-quarter year-over-year revenue for Green Thumb Industries, curafeuille and Verano increased by 25%, 20% and 67% respectively. Big players in the tobacco, alcohol and pharmaceutical industries have bought into the cannabis industry in recent years. All of this activity is precisely what hesitant investors have been waiting to see before seizing plant investment opportunities.
“We are no longer in completely uncharted waters when it comes to investing in cannabis,” said John Martin, former CEO and managing partner of Capital of Antares. “Many investors perceived risk in precisely this way just five years ago. Today, the robustness of the industry cannot be denied, and investors are seeing the opportunities in the industry more clearly without the fog of stigma and federal interference.
About KEY Investment Partners
Founded in 2018, KEY Investment Partners combines a systematic approach to deal sourcing and rigorous due diligence, with the goal of connecting investors to the most attractive cannabis opportunities. Leveraging decades of combined institutional experience, KEY finds unique opportunities in high-growth, market-leading cannabis companies that are led by exceptional management teams. The company uses proven methods to provide institutional-grade investment management and client service to those looking to capitalize on the rapidly growing US cannabis market.
For more information, please visit KEY Investment Partners online or via email firstname.lastname@example.org. Stay up to date on cannabis investing by subscribing to the KEY Investment Partners podcast, Unleash the Cannabis.
Contact: Jim Disset
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