Investment Thesis
As is common in young, high-growth businesses, the cannabis industry is going through a rough patch as its members spend heavily to scale their businesses and gain market share. While legal in many US states, cannabis is still federally illegal in the US and an array of regulations are impeding the growth of this market. Cannabis companies are unable to access traditional means of financing and are starved for cash, often issuing stock to raise much-needed liquidity. The valuation of the publicly listed cannabis companies has suffered, as evidenced by the price chart