Unrivaled Brands CEO Frank Knuettel
Unrivaled Brands CEO Frank Knuettel today on Blunt Business with Jorge Hermida only on Cannabis Radio. Our next guest has decades of experience in working with and advising public and private companies on financial management and controls, M&A, capital markets transactions, and operating and financial restructurings. Bob Hoban in Forbes recently wrote: There are indicators, not the least of which was the House’s passage of the MORE ACT, that senior members of the Biden administration, like Senate Majority Leader Chuck Schumer, are moving toward federal cannabis legalization. This is building a wave of momentum for U.S. cannabis investment and goes hand in hand with the trend of industry consolidation we’ve seen in recent months. With this growing enthusiasm and confidence, increasing mergers and acquisition activity, and investors looking for companies to fund, one must ask the question – how does one evaluate cannabis investments? So we talk about the opportunities that Unrivaled Brands is focusing on and what opportunities are in its purview. Just as we saw in Canada, cannabis reform is gaining supporters at the highest level of American politics leading to a wave of excitement and causing investors to position for market entry.
When that time comes, capital will begin flowing into the U.S. cannabis market that will far exceed the investment that went into Canada on the heels of the nation’s cannabis legalization.” Things don’t look like they have panned out so well with Canada’s legalization rollout. After the tremendous political strides, the cannabis industry made in 2020, 2021 has a lot to live up to. Experts and insiders agree the coming year could have a lot in store for the maturing cannabis industry, from the acceleration of M&A and funding in the capital markets to continuing momentum toward legalization on the state level. Cheddar.com said that experts predict that shifting political preferences toward legalization in the U.S. and globally will kick off a flurry of consolidation in the cannabis industry. But mergers and acquisitions in 2021, following last year’s onset of COVID-19 and a pre-pandemic market rout that rocked the cannabis sector, will be much more intentional and accretive than the land grab M&A of more cash-flush years. Motley Fool sees that there will be a lot of M&A activity building off of 2020. They said the sector as hot again, coming off of two large deals. They said: “In the past few months, some big deals have taken place in the cannabis industry. In December 2020, there was news of a near-$4 billion merger including Canadian pot giants Aphria and Tilray, which will create the largest cannabis company in the world in terms of revenue.