Selling Bonds for Industrial Cannabis Acquisition

[Axel9283]

Hi, I am posting to either find investors who are interested or anyone who can point me in the right direction.


I have 5+ years of Commercial Real Estate experience in underwriting and acquisitions, I am well connected to brokers who show me deals first and have a few that look promising. I am missing the investors to fund a portion of the acquisition. I am looking to find investors who would be interested in lending zero coupon bonds (10 year length preferred but negotiable) at 9% interest annually.

Does anyone have or know any investors who have capital to allocate towards new investments that I could speak to further about the opportunity?

 

[Martin Everson]

I am looking to find investors who would be interested in lending zero coupon bonds (10 year length preferred but negotiable) at 9% interest annually.

Not gonna happen. Investors can already get 7% or more from a diversified high yield bond fund with coupons paid monthly. A Cannabis related bond is a high a risk as it gets.

Does anyone have or know any investors who have capital to allocate towards new investments that I could speak to further about the opportunity?

Not for anything Cannabis related unfortunately.

 

[JohnnyDoe]

Investors can already get 7% or more from a diversified high yield bond fund with coupons paid monthly.

Like which fund?

 

[Martin Everson]

Like Black Rock Dynamic Income Fund.

https://www.blackrock.com/lu/individual/products/292584/blackrock-dynamic-high-income-fund

 

[Axel9283]

Not gonna happen. Investors can already get 7% or more from a diversified high yield bond fund with coupons paid monthly. A Cannabis related bond is a high a risk as it gets.



Not for anything Cannabis related unfortunately.

Understood, thanks. Do you know any way other options I could explore?

 

[Martin Everson]

Understood, thanks. Do you know any way other options I could explore?

How much money are you actually looking for?

 

[Axel9283]

$9 million, I have $25 million from a partner.

 

[Martin Everson]

$9 million, I have $25 million from a partner.

Ok I see. So is the $25m equity ownership in the acquisition or debt financing?

I am just trying to understand how your structuring the acquisition.

 

[Axel9283]

Yes, I am in in charge of bringing in the debt debt financing for the acquisition.

 

[Hardendercol]

Hmm, it will be quite difficult to find investors to sell cannabis.

 

[Hardendercol]

Hmm, it will be quite difficult to find investors to sell cannabis. This is a bit of a non-standard field, so that a lot of people are employed in it. Cannabis is illegal in many countries, so you risk breaking the law, as well as risking your money even in the case of a successful sale. If you plan to sell cannabis in countries where it is legalized, then the market there is already full. Are you sure that you are interested in Cannabis? I once tried to make a business for the manufacture of sarms, but people are not so willing to buy medicines, which can include cannabis. Why did you decide to change the vector of work at all, if you already have good connections with brokers and success in another field?

 

[mickey]

Wow, one of my main-topics these days.
The main problem of the cannabis-industries like in the US or Canada is it's oversaturation. Every state where it became legal sees an extraordinary rise in dispensaries. They are little village with 5000 People but 10 dispensaries in it. The more players are into the market, the impossible it gets to get a gain.

Another problem is that both countries do not export any cannabis products. So there is no way to conquer additional markets and make additional revenue.