Best Cannabis Investment Banks

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Contributor, Benzinga
July 20, 2022

Cannabis companies need more than a quality crop, superb marketing, and a distribution plan. The industry is flush with cash, growing every year by leaps and bounds that once seemed unattainable. With the deregulation (or re-regulation) of cannabis, cash is out there, but how does that money make its way to the right firms at the right times?

Look through this list of the best cannabis investment banks, learn what they do and how they support this burgeoning sector.

Canaccord Genuity

Canaccord Genuity bills itself as a “leading advisor” in the cannabis world, helping its clients grow at their own pace. Institutional and corporate clients reach out to Canaccord Genuity every day to learn more about their financial options, how to raise capital and how to manage their businesses more effectively.

Canaccord clients gain access to:

  • M&A advisory services
  • Equity capital markets
  • Debt advisory services
  • Debt restructuring services
  • Financial sponsorships

With these solutions, a cannabis business can go from a startup to an overnight sensation. Established firms can access the cash they need, or they might work with an M&A partner that has their best interests at heart. Cannabis companies could learn how to manage or restructure their debt to remain afloat or open up new opportunities, or they can connect with Canaccord Genuity’s partners to obtain financial sponsorships. 

Golden Eagle Partners

Cannabis businesses need an advisor that can help them make strategic decisions that ensure their present success and longevity. Specializing in M&A, financing, licensing, joint ventures and co-development arrangements, Golden Eagle can help a cannabis business position itself properly in the current market. 

Specialists from Golden Eagle work closely with clients to help them grow and change appropriately. A cannabis firm can access debt financing, equity financing, M&A support and much more. 

With boutique-style service, you speak directly to someone who knows your situation and makes your success their business. Remember, too, that Golden Eagle, like any quality investment bank, helps you close every transaction and reduce risk. 

Cowen

Cowen helps cannabis firms that want to collaborate across industries, bringing more funding and exposure to the sector. The team at Cowen provides expert analysis of the marketplace, helps clients understand how the market is moving and has an established track record of success. 

While Cowen provides underwriting and advisory services for companies in the cannabis field, it also offers access to strategic capital resources, capital markets, M&A support and more. 

In the capital markets alone, Cowen offers support for:

  • IPOs
  • Follow-ons
  • ATM offerings
  • Private crossovers
  • Convertible debts
  • SPACs
  • PIPEs

You can choose a new direction for your business today or set up a new firm properly using Cowen’s resources. 

What Can Cannabis Investment Banks Do For You?

As you research these cannabis investment banks, remember that they do more than push pieces around the global cannabis chessboard. These firms help you manage your money properly, raise funds, control debt levels, acquire other businesses, merge with your competitors and position the business for long-term success.

M&A: Mergers and acquisitions are a part of the business. You never know when it might make sense to merge with another company, acquire another business or sell to another firm. Remember, cannabis companies must abide by unique rules and regulations, and a merger, sale or acquisition is fraught with little details that you should allow an investment bank to handle.

Equity Capital: Bringing in capital and offering equity stakes to investors is just one way to grow your business. Working with an investment bank helps you vet these investors, close the deal and continue to seek funding. 

Debt Financing: Debt financing can help your business lower its liability and increase cash flow. Reach out to an investment bank before throwing in the towel or accessing loans that simply don’t make sense. 

Debt Advisory: Not all debts are bad, and debt advisory services help cannabis businesses make the most of good debt while paying off or avoiding bad debt. Instead of making financial decisions in a vacuum, you can run these ideas by the experts.

Financial Sponsorships: Seek out financial sponsorships when you know that large businesses want to invest in your ideas. You don’t need to engage investors on your own when an investment bank can bring the money to your doorstep.

IPOs: An initial public offering allows your business to raise capital on the stock market. If you want to grow quickly, listing the business may be your best choice. Plus, working with an experienced underwriter ensures that you’re compliant from start to finish.

Cannabis Companies and Investment Banks Go Hand-in-Hand

The cannabis industry moves fast, and you need an investment bank that moves faster. Which do you prefer? Canaccord Genuity, Golden Eagle Partners or Cowen? Working with an investment bank could be the first or last step in your company’s transformation, and you must take advantage of these tips right away as your take on cannabis makes waves in the most exciting industry of the 2020s.

About Patton Hunnicutt

Patton Hunnicutt is a contributor and editor at Benzinga. He’s worked for several years on financial content, addressing issues related to personal finance, investments, retirement, and more.