There is a segment of the investment community that wants to invest in the cannabis industry in the worst way, and that is exactly how some are doing it. Over the past several months our firm has reviewed a number of private placement memoranda (PPM) for clients, and while some appear to be solid and well written, others remind us of the early days of the internet boom when business plans were sometimes written on napkins. Deficiencies we have found in PPMs include confusing descriptions of business plans, lack of financial projections, lack of basis for valuations, inadequate disclosure of risk factors and vague discussion of management compensation and/or equity holdings.
If you are planning to invest in a cannabis company, here are a few factors that you should consider before making a decision. Continue Reading Invest in That?? What are you Smoking??