One of the black box mysteries I am often asked about is valuation of a company during an investment. As I've been preparing for a presentation I’m giving at the MJBizInt’l conference in Toronto next month, I’ve been thinking about a common aspect of the debate - the importance of revenues.
The CBD sector is growing at an exponential rate. If you've walked an industry trade show recently, you've certainly noticed an increasing array of CBD-infused products, and your local dispensary has likely also stocked up. Cannabidiol—CBD—is a phytocannabinoid that has significant medical benefits, but does not make people feel “stoned” and can actually counteract the psychoactivity of THC. The fact that CBD-rich cannabis is non-psychoactive or less psychoactive than THC-dominant strains makes it an appealing option for patients looking for relief from inflammation, pain, anxiety, psychosis, seizures, spasms, and other conditions without disconcerting feelings of lethargy or dysphoria. CBD products include oils, tinctures and vaporizer kits.
Good conversation today with an entrepreneur looking to get into the cannabis industry with a new startup. The first question of the conversation was one we receive a lot so let me take a few moments to post a public answer.
I hold some Yahoo! stock so I've been keeping a close eye on the "auction" process currently underway. Despite the hype I still tend to believe in the underlying fundamentals of the company for several reasons, one of which was highlighted halfway through a WSJ article. Here's a quick quote:
Ohio Legalized Medical Marijuana:
The nation's 7th largest state, Ohio, just legalized medical marijuana. Not only did they legalize it, they legalized it through the legislature, not a referendum, and the law includes a number of conditions important to widespread patient adoption.
"Twenty-one ailments are included in the broad list of qualifying conditions, ranging from chronic pain to cancer to post-traumatic stress disorder to glaucoma. The inclusion of chronic pain is important, as it can help boost patient numbers dramatically." Marijuana Business Daily