Investors Target Distressed Cannabis Companies for New Opportunities
Could it be a win-win deal?
An increasing number of investors – including mainstream investment banks new to cannabis – have begun seeking out cash-strapped marijuana companies with the aim of pumping money into them to provide a financial lifeline.
The investments offer the distressed companies a chance to get back up on their feet.
Such an industry correction, while both inevitable and painful for many, does have a flip side, said Henry Owsley, CEO of New York-based Gordian Group, an independent investment bank specializing in distressed financial situations.
“This is not a huge industry by any stretch of the imagination, but it may very well get there,” Owsley told Marijuana Business Daily.
“In doing so, there will be a lot of destruction of capital and creation of wealth. In any kind of turmoil like that, there will likely be a screaming need for financial restructurings.”