Cannabis Investor Spots Opportunity in California
Silver Spike Capital, a cannabis-focused investment company employs innovative financial models to address one of the biggest issues facing the cannabis industry: a shortage of cash.
Due to the federal ban on marijuana, cannabis businesses aren’t able to simply take out bank loans, or even issue bonds. This has led to the need for creative funding: A lot of lenders working in the cannabis industry, for instance, specialize in loans that are secured by real estate.
However, Silver Spike Chief Executive Officer Scott Gordon, with more than 30 years of the field of asset management and investment over the years, has chosen an entirely different approach. Silver Spike has so far produced three special purpose acquisition companies, one of which will take the cannabis tech platform Weedmaps publicly in 2021.
This time, Silver Spike also announced the business development division of its company has led the 170-million loan in the name of Shryne Group Inc., which is the owner of Stiiizy, a California-based company. Stiiizy is one of the most coveted U.S. brand names in cannabis. This is an intriguing decision in a market where there is no interstate transportation and is a major obstacle to gaining an image as a brand that is recognized nationally.
Gordon was also co-founder of Egg Rock Holdings, the parent company behind The Papa & Barkley brand of cannabis and CBD products. As concerns mount over the market’s saturation and competition in California Gordon considers it a testing place for emerging brands.
Get more information about the interview on Bloomberg now.