Entourage Effect Capital’s Matt Hawkins On Cannabis Opportunities
On our latest Trade To Black podcast, host Shadd Dales is joined by Matt Hawkins, the Founder and Managing Partner of Entourage Effect Capital. Hawkins will give us some insight into cannabis trends from an institutional perspective, what sectors might be seeing distressed assets, and the latest updates on courting an investor in these with potential reform on the horizon. Michael Bronstein from the American Trade Association for Cannabis and Hemp also joins us to talk about the latest developments in Pennsylvania involving the adult-use cannabis landscape.
Now that we’ve seen Germany’s election results, Finn Hansel, CEO of Sanity Group, will be joining Wednesday’s live stream to discuss the implications. Early insights suggest Germany’s regulated cannabis market is outperforming the illicit market, with reduced healthcare and law enforcement costs since legalization last April. Be sure to tune in for that episode.
Entourage Effect Capital manages a private cannabis fund and has invested over $140 million in more than 60 cannabis companies, driving industry growth and innovation across various sectors. Find out why Hawkins noted that while there is strong potential, current cannabis market sentiment and share prices do not align with business fundamentals. Institutions are engaged in ongoing talks, but until regulatory barriers ease, widespread investment remains cautious.
In Florida, some large players preemptively invested in infrastructure and are well-capitalized enough to survive. However, smaller operators and overleveraged companies are struggling. Hawkins noted that investing in distressed assets is not always attractive, as many companies have unrecoverable balance sheet issues.
Michael Bronstein from the American Trade Association for Cannabis and Hemp will join us to talk about the latest developments in Pennsylvania involving the adult-use cannabis landscape. There’s a growing wave of support for adult-use cannabis in Pennsylvania—70% of voters are on board, according to recent polls. But lawmakers are still sending mixed signals. Governor Shapiro appears ready to roll out the green carpet, and some detractors claim there’s “no path forward. Bronstein will explain what is happening.
