The Canadian cannabis market is maturing, and savvy investors are looking south for new opportunities. While there are a growing number of multi-state operators, there are only a handful that combine financial and operational expertise — and even fewer with management teams that have a meaningful stake in the business. Investors may want to look towards these companies for the best growth potential and aligned incentives.
Jushi Holdings Inc. (NEO: JUSH.B) was founded by a former Vice Chairman of Deutsche Bank, a distressed equity hedge fund team and the Founder and former CEO of Organigram Holdings Inc. (CSE: OGI). With more than $20 million of their own capital invested in the business, the team is uniquely qualified to capitalize on the nascent U.S. cannabis industry with incentives that are well-aligned with their shareholders.
CFN Media recently sat down with President Erich Mauff in-studio to discuss the company’s unique approach to the market and what sets it apart from other emerging MSOs.
Perfect Blend of Expertise
Jushi was founded a year and a half ago with four initial founders. Erich Mauff, a former Vice Chairman of Deutsche Bank, teamed up with Jim Cacioppo and Jon Barack, who ran a distressed equity hedge fund focusing on private and public cannabis investments. They were early investors in Dennis Arsenault’s Organigram Holdings, which has become one of the preeminent Canadian licensed producers; and brought on Arsenault to the team as the fourth co-founder.
After they began investing in the U.S. market four years ago, the team recognized the legalization trend at the state level in the U.S. market and the public support of some form of legalization. They decided to create their own business in the United States after investing in a number of smaller companies since they possessed the skill sets, management team, capital and desire to succeed.
In his exclusive interview with CFN Media, President Eric Mauff pointed out that there are many similarities between the finance and cannabis industries. They are both highly regulated businesses that require access to capital and a strong background in compliance. The only missing link on the team was operations — and they filled the link with the acquisition of intellectual property of The Clinic Consulting Services, The Bank and The Lab and its award-winning operations team including bringing Max Cohen into the C-Suite.
What Sets Jushi Apart?
Jushi has created a well-rounded management team with expertise in finance and operations, which sets it apart from many companies that only have expertise in one of those areas. In addition, the company’s management team is well-aligned with shareholders with about $20 million of their own capital invested in the company. These aligned incentives promote prudent capital expenditures and a focus on generating a high return on investment.
With the acquisition of assets including trademarks and intellectual property from The Clinic Consulting Services, The Bank and The Lab as well as Max Cohen and several key high-profile members of his team, the company gained access to a team of expert operators who will build best-in-class cultivation, processing, retail processes and facilities. The team is also experienced with acquiring competitive licenses that could help the company enter new and exciting markets. Max Cohen, Founder and CEO of The Clinic, is also a founding member and current board treasurer of the Marijuana Industry Group, and former member of the board of directors for the National Cannabis Industry Organization, a national marijuana lobbying and policy organization.
The company’s cannabis footprint is augmented with an interest in hemp-based CBD products. In May, the company announced the opening of the first retail location of its Sound Wellness Holdings subsidiary, SW Retail Stores LLC, doing business as Mend. The full-spectrum CBD store is located in Amherst, NY and provides customers with tinctures, soft gel capsules, topical lotions and other CBD-hemp-derived wellness products.
Jushi Holdings Inc. (NEO: JUSH.B) has built an impressive management team to capitalize on the nascent U.S. cannabis industry. With aligned incentives and return on capital a core focus, investors may want to keep an eye on further developments as the company executes its vision of becoming a bold, new, principled leader in the cannabis and hemp industry.
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