Cannabis valuations and investor sentiment are beginning to see a rebound from the lows earlier in the year. US cannabis operators remain an interesting investment opportunity even during the pandemic given their underlying fundamentals (Green Thumb Industries, Curaleaf, and Trulieve are expected to surpass $100 million in quarterly revenue this year) and due to increasing regulatory visibility in the space.
New York-based LeafLink has closed a $250 million credit facility to provide credit to cannabis operators. While LeafLink already provides some factoring (trade credit) to facilitate transactions, the majority of smaller cannabis operators currently do not have access to debt capital. This new loan facility will allow LeafLink to expand factoring across the cannabis landscape, helping supply chains operate more efficiently
Kanna, a gig work platform, trains workers in need of employment for jobs in the legal cannabis industry and connects them with vetted farms and dispensaries in need of skilled employees.
According to an analysis from the Marijuana Business Factbook, the cannabis industry’s impact on the US economy is already at $46 billion and is projected to increase significantly. MJ Biz estimates that for every $1 consumers/patients spend at dispensaries and recreational marijuana stores, an additional $2.50 of economic value is injected into the economy – much of it at the local level. Another reason to visit your local dispensary (and tip your budtender)!