For Your Consideration...

Electrum Partners President Leslie Bocskor Discusses the Opportunity of Legalized Cannabis in Mexico at the CannaMexico World Summit

Leslie Bocskor, President of Electrum Partners, a guest of former President Vicente Fox, spoke at the CannaMexico World Summit in San Cristobal, Mexico, held May 30 thru May 31, 2018. Mr. Bocskor participated in a panel that included the former President of Mexico, Vicente Fox Quesada, who has been a staunch advocate of legalizing cannabis in Mexico.

From left to right, Leslie Bocskor, President of Electrum Partners, Jay Wilgar, CEO and Director of Newstrike, Matt Hawkins, Managing Principal of Cresco Capital Partners, Vincente Fox Quesada, Former President of Mexico.

Like many other Latin American countries, Mexico is considering legalizing cannabis for medical and adult use as well as hemp for multiple markets. With a population of over 120 million residents, Mexico leads the list of Spanish-speaking countries exploring the benefits of legalization. When combined with Spain as well as Brazil, Argentina, Chile, Uruguay, Venezuela and other South and Central American countries as well as Spain and Portugal, the market swells to almost 730 million Spanish and Portuguese speakers worldwide. In comparison, the total US population is roughly 325 million.

“In many cases, our work with government agencies is pro-bono, where we will go in and work with policy makers and help construct functional regulatory frameworks and public policy. Our goal as good corporate citizens in Mexico and other Latin American countries is to get the right regulatory infrastructure laid out beforehand because it is so critical to the success of all stakeholders,” said Mr. Bocskor, whose Las Vegas based firm, Electrum Partners, offers business advisory services to companies working in or exploring the legal cannabis space. “Companies we work with in the US such as GB Sciences are exploring multiple therapies based on cannabis that help patients dealing with life threatening illnesses who are left with very few choices for pain relief. With a progressive policy in place, I can imagine dozens of innovative cannabis companies coming out of Mexico over time.”

Adam Jason Cohen, Senior Vice President of Electrum Partners also attended the Summit and added, “Right now there is an opportunity for Mexico to establish itself as the leader for Spanish speaking countries for medical, pharmaceutical grade and adult use cannabis as well as hemp.”

The main focus of the Summit was to gather leaders in legal cannabis who have global vision and reach to discuss the emerging opportunities in the cannabis industry in Mexico. Numerous industry professionals in finance, medicine, government, technology and agriculture from around the world were in attendance at the inaugural event. Other guest speakers included Dr. Jorge Hererra from Colombia, Julio Calzada Mazzei from Uruguay, Jorge Cervantes from Spain, Ana Maria Gazmuri from Chile, Mario Emilio Gutierrez from Mexico, Dr, Inbar Maymon from Israel, Ethan Nadelmann, Founder of the Drug Policy Alliance and Derek Riedle, the publisher of Civilized, from Canada.

But the star of the event was the event’s host, Vicente Fox who was President of Mexico from 2000 to 2006. “I have to get a big shout out to Former Mexico President, Vicente Fox for inviting me and members of the Electrum Partners team as guests to attend this wonderful event,” said Mr. Bocskor.

About Centro Fox: Located on the outskirts of Leon, Guanajuato, Mexico, Centro Fox offers a multidisciplinary campus with facilities for international events, business conferences, educational programs, leadership sessions, academic symposiums, philanthropic activities and more. The complex houses a music school and the Hacienda San Cristobal Center.

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Sean McCabe of Electrum Partners discusses opportunities for legal cannabis in emerging export markets

Sean McCabe, Director of Business Development at Electrum Partners, was recently interviewed by at the Arcview Investor Forum in Vancouver B.C. about his thoughts on emerging export markets in the legal cannabis industry. During the interview, Mr. McCabe discussed the progress made by Canada in exporting internationally. “You’re going to see a rush to international markets and America is actually going to be behind on those markets because there’s nowhere that you can legally export from the United States until federal legalization happens,” he said, “So Canada is going to be on the forefront of that.”

Mr. McCabe also addressed the demand for legal cannabis products in Europe and how the competition is heating up with Canada and other countries competing to export to those emerging markets. “Currently the really exciting places are the British Medical Market and the German recreational-medical market. Jamaica is about to come in and compete with that for international export and Canada is about to compete for international export.”

Later in the interview, Mr. McCabe discussed Electrum Partners’ goal to help fund businesses in the sector. He also provided insight into the need for an ancillary debt fund to provide capital into the larger ecosystem within the cannabis industry. “Nutrient systems, lighting systems, brick and mortar storefronts, real estate leasing, anything that doesn’t touch the plant… that costs $820 million USD for infrastructure so far. No one can get a loan from a bank, no one can get a mortgage. That market’s going to continue to grow and there’s going to be $25 billion USD just for infrastructure. So if you can start a fund, and you can be that syphon through which that capital meets that infrastructure then everyone’s going to have a merry Christmas.”

The Arcview Investor Forum, held at the Westin Bayshore in Vancouver, Canada from April 30th to May 2nd 2018, assembles high-net worth investors exploring opportunities in the legal cannabis space.

To learn more about the industry, check out The Electrum Report for breaking news and information.

Link to the podcast:

Link to the article: Cannabis Podcast Interview with Sean McCabe, Director of Business Development for Electrum

For more information or to schedule a consultation, please submit an inquiry on our Contact form.

Insight from Leslie Bocskor for new business owners in the cannabis industry

In an audio interview of Leslie Bocskor, President of Electrum Partners, by CannaInsider, Mr. Bocskor discusses some of the ways in which new business owners in the cannabis industry have evolved over the past several years. “We’re seeing the level of sophistication, the level of due diligence, the quality and diversity of the teams being assembled, the intellectual property protections, has all been improving constantly, “he said. Mr. Bocskor’s interview touches on four main areas.

  1. Industry maturing
    • Quality of the Company teams
    • Diversity of owners and staff including the granularity of professional experience of core team members
    • Strength of idea formation and intellectual property
    • The level of preparation and planning going into the entrepreneur business plans
    • Depth and breadth of the bench (supporting team members) has increased dramatically
  2. The Talent Influx
    Another one of the reasons for the evolution of the legal cannabis market is that many highly experienced professionals from outside of the industry are entering the space. Mr. Bocskor references several industries where professionals are migrating from to enter the legal cannabis industry.

    • Science
    • Medicine
    • Marketing
    • Distribution
    • Logistics
  3. Industrial Hemp and the Cannabis Ecosystem
    “I am very interested in industrial hemp. It is the less exciting cousin to cannabis. I believe the hemp industry is going to encompass hemp paper, hemp textiles, hemp plastics, biofuels, food products and industrial chemicals,” said Mr. Bocskor. He then expands on how industrial hemp is one part of the seven business verticals within the legal cannabis ecosystem. The seven verticals include:

    • Adult Use
    • Medical Use
    • Pharmaceutical products
    • Nutraceutical
    • Industrial hemp
    • Ancillary market
    • Veterinary
  4. States with Restrictive Policies
    We have seen hundreds of millions in dollars pour into Washington, Nevada and California once they voted in adult use legal cannabis. While the industry is seeing traction in those States, other States such as Illinois, Minnesota and New York that initially implemented highly restrictive medical marijuana programs remain mired in slow growth. Mr. Bocskor believes that while these markets are currently saddled with restrictive policies, they nevertheless are taking steps in the right direction and will gradually ease their policies over time as the political climate evolves and the impact of cannabis tax revenue becomes clear. For States considering legalizing adult use cannabis, the idea is to review the policies of existing adult use States, determine which aspects of those frameworks align with the goals and objectives of their own State and then engage the services of professional industry advisors with real world experience.

For information about private consultations and guest speaker appearances by Mr. Bocskor, please submit an inquiry on our Contact form.

Find Leslie on Twitter @lesliebocskor

Interview with Leslie Bocskor President of Electrum Partners

Leslie Bocskor, President of Electrum Partners discusses a variety of topics related to legalized cannabis in an interview by the Wealth Research Group. Audio interview published on the Wealth Research Group YouTube channel. Discussion topics include:

  • Government and the cannabis industry
  • The transition to Adult Use
  • California legalizing cannabis
  • Socioeconomic benefits to the US economy
  • Top five products in the cannabis sector
  • Demographics of cannabis users

Regarding prohibition, Mr. Bocskor addresses complex issues related to the stigma associated with cannabis due to misinformation and propaganda. He points out that historically, the efforts put forth to stigmatize the plant eventually led to regulatory policies that in turn created the foundation for Federal prohibition. Mr. Bocskor goes on to say that the benefits for dropping prohibition are numerous and that as States have begun to legalize medical and adult use cannabis, it has had a positive impact on a number of levels. Specifically, legalization:

  • Reduces the black market and the violent crimes associated with trafficking
  • Removes it from the hands of kids
  • Reduces the capital outflow to cartels and criminal organizations
  • Allows the US to capture the money and formulate a new marketplace which creates jobs and generates tax revenue that is used to fund local law enforcement, substance abuse counseling, education and more.
  • Additionally, legalization and regulation lessen the burden on the US Justice System from incarcerating thousands of people a year, saving expenditures that can add up to billions of dollars spent annually. In the event of Federal legalization, the US government would be able to reallocate those funds to more pressing needs and public projects. Finally, a hidden societal and economic benefit for reduced incarceration is more people leading productive lives, fewer broken homes and in general, more people working in the US economy, which boosts State and Federal tax coffers even further.

For information about private consultations and guest speaker appearances by Mr. Bocskor, please use our contact form.

Electrum Partners shares three tips about investing in legal cannabis

When it comes to investing in legal cannabis, there are three important tips to know, and having Electrum Partners on your side can help navigate the way:

  1. Establish a path to liquidity – then maintain it
  2. Legalization is coming and sooner than you think
  3. Compliance, compliance, compliance!

The Path: So you’ve made an investment in a start-up in the legal cannabis industry and made sure they that are closely following all of the regulatory compliance required. Is there a problem? Only if you lose focus on the end goal of liquidating your investment position to make a profit. The bottom line is, legal cannabis is a fast-moving industry within a highly fragmented marketplace so it is critical to be well prepared for anything. Electrum Partners works to ensure that your path to liquidity is reasonable and achievable. Our firm provides in-depth, independent company evaluations that provide insight and guidance for your cannabis related investment opportunities.

National legalization: Tax revenues from legal marijuana sales have bolstered the budgets of states like Colorado and Washington. Breakout sales in Nevada have already generated $30 million in tax revenue in the Silver State while tax revenue for California is projected to be 1 Billion in 2018. Government officials in non-legal states will be compelled to adopt legalization in order to capture the windfall in tax dollars. Colorado, Washington and Nevada have all directly benefited from the boost in budgets for infrastructure, public education, law enforcement and overall cash infusion into their general funds. For these reasons and more, we at believe that cannabis (particularly medical) will legalize nationally in the US within the next five years.

Compliance: Be sure that you are comfortable with how each business in your investment portfolio meets the regulatory burden placed by the state and local municipality. New laws and ordinances are passed every day, often without much news coverage or fanfare. In legal cannabis, you have to stay on top of it. Changes to the laws emerge suddenly, and ignorance of the regulatory frameworks is no excuse. Companies out of compliance may suffer stiff fines, reputational damage, and in many cases are shut-down completely. By aligning yourself with industry experts like those at Electrum Partners, you don’t have to become an expert in every geographic-product space mix.

Contact us to vet your investment opportunities today!