For Your Consideration...

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

In this 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!