This morning, finds Middle Tennessee starting out quite cold but since the Sun has made its appearance its shaping up to be a beautiful day. As is usual the Old Hemp Farmer is savoring a cup of organic coffee while nibbling on our new improved Tennessee Homegrown D8 Chocolate bar now with D9 THC and more D8 THC (In the words of RuPaul, “More is more”) at the same price, at Tennessee Homegrown, it’s about the people, people. So after that brief commercial message, The Old Hemp Farmer will get back to the task at hand, which is to comment on the Cannabis Industry. Today’s topic is; How does one invest in the Cannabis sector? To someone outside the Cannabis this would seem like a quite straight forward proposition. Well, it turns out that investing in legal high CBD, D8 THC or D9 THC is extremely difficult even if you’re seasoned Cannabis professional. So a bunch of you are saying, why can’t I just invest in publicly traded companies? You could, but even Cannabis companies listed on the various stock markets come with a steep learning curve. Why? Well, this may come as a shock but a large amount of the publicly traded Cannabis companies are presently losing money and are scrambling to recover from getting too large, too quick. Canada is the poster child for Cannabis companies building infrastructure in anticipation of projected sales instead of actual sales. This miscalculation between actual and projected sales was and still is the bane of the larger Cannabis companies in the United States, as well.
So what about investing in private Cannabis companies coming online in the Unites States? Getting into a start up Cannabis business sounds exciting, because it is, but for all of the wrong reasons. Building a Cannabis company in an ever changing legal environment with people that for the most part that have never worked together or even more stressful that have moved into new skill sets can lead to a state of continual “Crisis Management”. A huge amount of privately (corporate entities, as well) Cannabis companies have the need for speed, thinking they have to get into the :Game” as soon as possible to cash in on the “Green Rush”. One thing that The Old Hemp Farmer has observed is if your Cannabis company comes out of the “Shute” with organizational disfunction and not capitalized adequately to operate for a couple years, the probability of failure is around 90%, maybe more. Even if an established companies like Tennessee Homegrown got visited by “Cannabis Faire” and got dropped a chunk of change, I’m not sure what Lee Crabtree and I would do with it, besides put into a money market account. Our business is incorporated in Tennessee, a state that has filed three Cannabis bills at the Capitol that would change our profit model. Guess right, you win large, guess wrong, you lose large. Right now, when it comes to investing in Cannabis, there is an old saying in carpentry “measure twice, cut once”. That might be some good advice when it comes to cutting a check to invest in the Cannabis business. Anyway as always Hemp Dawgs and Hemp Puppies keep one eye on the weather and the other eye on the market.
Visit our Tennessee Homegrown web site to try our great products: https://www.tnhomegrown.com
Our Podcast – Full Contact Cannabis: https://fullcontactcannabis.podbean.com
The Wife’s web site: https://www.theoldhempfarmerswife.com
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