3 Cannabis Myths Debunked
The Paxhia, Managing Partners, Poseidon Asset Management | Dec 03, 2018
We’re on our fifth year as Co-Founders and Managing Directors of a fund dedicated to the cannabis industry. We've invested in over 47 companies in the space, across all sub-sectors of the industry as well. Over the five years, we've had questions upon questions that we've had to answer. Currently, there are three big myths, which we’d like to debunk.
Myth Number 1: Cannabis industry investing leads to immediate returns.
Right now, we're experiencing a time of froth and exuberance in the market. We’re meeting many investors who think if they put money into that public market, they will immediately see returns. This has come up a lot recently, especially as it pertains to companies right before they go through a reverse takeover process. This is also affectionately known as an RTO up in Canada. People who jump in on those deals are jumping in on a high valuation. It's priced to perfection for the performance going forward. That’s concerning. New investors tend not to be aware of some of the logistical...
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