Investors Are Shifting Toward Payments In The Cannabis Industry: Fund Manager Explains Why

In a recent episode of Benzinga's Cannabis Insider, a renowned platform for insights on the cannabis industry, co-hosts Javier Hasse and Elliot Lane had an enlightening conversation with Patrick Rea of Poseidon Investment Management. Poseidon is a key player in the cannabis sector, committed to investing in promising private cannabis companies.

Rea offered valuable insights into the cannabis industry and its current investment climate. The discussion delved into key industry trends, predictions, and strategies, with Rea painting an intriguing picture of the evolving landscape.

As a member of Poseidon Investment Management, one of the longest-running investment firms in the cannabis industry, Rea is well-positioned to offer informed insights into the industry's intricacies. He drew attention to a significant trend among investors, highlighting a move toward payments within the industry as a mechanism to safeguard technology companies. This trend, Rea believes, will help prevent these companies from having to resort to a down round capital raise, which could include unfavorable terms and potentially dilute employee shares.

"What I can say is that the Poseidon team is one of the more experienced investing teams in the cannabis industry," stated Rea, reinforcing the team's credibility within this dynamic sector. He was also keen to express his perspective on current industry valuations, describing them as "bargain basement prices and unicorns birthing unicorns, birthing unicorns."

Rea shared his prediction that the industry will eventually see fewer participants, which he suggests might actually present new opportunities due to the industry's size. The discussion was full of profound insights, which can be gleaned in more depth by watching the full show on YouTube.