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Capital Ideas 9 options for financing in an untraditional business environment

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Green Growth Investments

Rates: Potential company equity
Jonathan Cantril, managing director at Green Growth Investments, is looking for companies with a strategy in mind. The private investment group invests in 23 states nationally, but is focused in states such as Arizona and Nevada because they have the lowest number of licenses per capita, which gives them a better chance to be influential in the market.

“We’ll find a successful operator, see what they have and where their vision is,” says Cantril. “If we have some kind of synergy, we’ll influx that corporation with funding and negotiate equity.”

Cantril works with companies that are fully integrated, from cultivation through retail. They approach every case separately, so the amount of both the investment and the equity changes based on what the cannabis company seeks. Green Growth entertains deals from $100,000 to $20 million, though their typical investments start between $1 million and $15 million, he says.

With the investment, Green Growth performs due diligence on the company to see where they can save money with renewable energy and lower manufacturing costs for cultivation clients. They also serve as the funds’ coordinator for the investment, so cannabis companies have to know who their vendors are and what they’re getting for money they spend.

Along with that, Green Growth provides backup on regulatory and compliance issues in 23 states, and Cantril and his team work to stay ahead of the laws.

“I’m looking for an entrepreneur who has taken some risk and is willing to make an investment, whether that’s in time, lifestyle or money. I don’t want to be the only one at risk.”

When a prospective client or company approaches Green Growth, Green Growth wants to know basics of the corporation seeking capital, how long the company has been in business, how many partners the owners have had, equity breakdown and whether the client is seeking a loan. But the company should also be ready to show its assets and its ability to return on an investment. Depending on the deal or project, they like to work side by side with the clients to achieve the best results for their capital.

It’s just as important to have a new approach to the industry, however, especially leaning toward the market for CBD or CBD-infused products, Cantril says. “If … they want to expand, or if they have an innovative product, that would catch our eyes,” he notes.

Read full article here http://magazine.cannabisbusinesstimes.com/article/march-2016/capital-idea.aspx