California and Florida Businessmen plan to invest $200M in Cannabis businesses. John Morgan, who is a Florida attorney turned businessman is investing up to $100M himself and a new Beverly Hills real estate investment firm has also pledged $100M for emerging cannabis businesses. The money continues to flood into cannabis, but as of today, it is still venture capitalist funds. How many years do you think it will take until commercialization takes effect?
A California retail estate investment firm and a wealthy Florida medical marijuana advocate separately pledged Tuesday to pump $100 million each into cannabis businesses, marking a notable new chapter in the MJ industry.
The combined $200 million is among the largest amounts of planned cannabis investments disclosed in a single day.
Moreover, the investment plans were unveiled at opposite ends of the country, signaling growing investor interest in marijuana businesses from coast to coast.
In California, a new MJ subsidiary of an established Beverly Hills real estate investment firm announced plans to spend $100 million on California’s medical and recreational marijuana industries over the next year.
StarGreen Capital, a unit of StarPoint Properties, said it plans to pump money into a range of marijuana companies, focusing initially on cultivators, manufacturers and retailers.
Also on Tuesday, Florida attorney and medical marijuana advocate John Morgan told the Miami Herald he plans to invest $100 million in “the right opportunities,” adding that he’s also interested in acquiring a stake in a licensed MMJ business in his home state.
Troy Dayton, CEO of investment and market research firm the Arcview Group, predicted additional significant investment dollars will flow into the cannabis industry after Tuesday’s announcements.
StarGreen Capital is interested in both new and established companies.
“The younger, newer entrepreneurs who have just started and are having a harder time to access capital are good partners for us because we want to just be a capital source and that’s going to be a lower entry point for us. Meaning it’s going to be an earlier stage but cheaper,” Daneshrad said.
“The more established companies are going to give us a quicker entry into the market and stronger penetration, but it’s going to be more expensive.”
In Florida, Morgan told the Miami Herald that he’s “prepared to invest significant monies in the marijuana industry, and I plan to.”
Arcview’s Dayton said that makes sense. Based on growth and the size of this market, he added, it was only a matter of time before deep-pocketed investors would more freely deploy their cash.
“It also makes sense that the big capital is going to go to real estate and the licensed businesses,” Dayton said. “These states aren’t going to give away these licenses again. When a new state passes a law, it’s a rare moment in time.”
Morgan did acknowledge he’s been approached about investing in Chestnut Hill Tree Farm, a licensed CBD business in Florida that is at the center of a lawsuit over its sale to a Canadian medical cannabis producer.