When considering stock markets, the S&P 500 dropped 12% to 2,386.13 (15/3/20) — hitting its lowest level since December 2018 — while the Nasdaq Composite closed 12.3% lower at 6,904.59 in its worst day ever. [2] The FTSE 100 has also been through a turbulent time and suffered its worst daily drop since late March. [3] (11/6/20) According to City AM. In contrast, Canopy Growth (NASDAQ:CGC), the only large-cap pure-play pot stock, has gained 38% since the year began (2020), and has more than doubled since the beginning of October. (1/12/20)
A fund-vehicle such as JPD Capital, includes multiple portfolio entities in the case of a PCC corporate structure, where these are considered as ‘cells’ for consideration by any Sophisticated or High Net worth Investor, ranging across the medicinal cannabis sector. This is known as vertical integration, offering investment opportunity and focus on all elements of the seed-to-sale value and supply chain.
Eco Equity is a fully subscribed entity operating from Zimbabwe. Supplying extracts and produce such as medicinal GMP-THC Flower, GMP-Oil to the pharmaceutical industry as an API (Active Pharmaceutical Ingredient) to meet the increasing global demand for a high specification medicinal cannabis product and transform lives.
As the first European medicinal cannabis producer within the portfolio, Ibero Botanica’s goal is to be the largest Spanish producer of effective European Union Good Manufacturing Practice (EU-GMP) certified medicinal CBD hemp to the global markets. A fast scaling entity in the portfolio that will be fully operational in six months after construction begins. Ibero Botanica will transition towards EU GMP THC flower production approximately 18-24 months into its operational timeline.
Tetra Global is a global leader in cannabis genetics. The company cultivates, develops and supplies advanced cannabis strains from scientific-led R&D facilities. Clients include agricultural cultivators, scientists and pharmaceutical companies wishing to expand their genetic portfolio. Operating from a highly regulated environment in the “cannabis genetics capital of Europe”: Austria.
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So why choose alternative investments over investments that are established?
A best practice fund-vehicle typically has an expert advisory board ready to advise and help the fund to make evidence-based decisions and demonstrates that the fund is strategic and has scientific, healthcare and government policy expertise, which informs its acquisition and growth agenda. JPD Capital have partnered with CDPRG to achieve this level of corporate guided support as a fund- vehicle operating in the medicinal cannabis industry.
Within the JPD Capital portfolio, examples of diversification are Tetra Global, a genetic cannabis company that cultivates and supplies advanced cannabis strains from scientific-led R&D facilities. To the premium CBD e-commerce brand Eresos producing cosmetic and wellbeing products that’s focused on the development of CBD, botanical and nutraceutical formulations for consumer e-commerce sales.
When choosing whether private equity is for you, it is also dependent on which type of investor you are. You can find out where you are positioned and what to strive for here: Which Investor Do You Want to be in 2021 [5]
References:
1. https://www.investopedia.com/terms/p/privateequity.asp
2. https://www.cnbc.com/2020/03/15/traders-await-futures-open-after-fed-cuts-rates-launches-easing-program.html – (15/03/20)
3. https://www.cityam.com/ftse-100-plunges-after-fed-warns-of-dour-economic-outlook/ – (11/06/20)
4. https://www.fool.com/investing/2020/12/01/up-38-in-2020-is-canopy-growth-still-a-buy/
5. https://www.jpdcapital.com/which-type-of-investor-do-you-want-to-be-in-2021/