NY Firm Provides Transparency in the Notoriously Hazy World of Cannabis Investing
Gotham Cannabis Associates (GCA) Revolutionizes The Way Investors Evaluate Legal Cannabis Companies
Apr 13, 2016, 12:36 ET
NEW YORK, April 13, 2016 /PRNewswire/ -- Gotham Cannabis Associates (GCA), a New York firm targeting both institutional investors and legal cannabis companies raising capital, provides comprehensive due diligence reports on the business and compliance status of innovative cannabis companies.
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Legal cannabis has quickly become one of the world's fastest growing market sectors, and the potential for huge returns has both investors and entrepreneurs rushing to evaluate new opportunities in this still largely untapped market. Investors need to be aware of the complex legal and practical challenges that new companies are facing and the reverse is also true; cannabis companies looking for investors simply cannot underestimate the intense scrutiny that accompanies a capital raise.
GCA streamlines the constantly evolving landscape of regulation and compliance by synthesizing and analyzing company research into "GCA Reports" that investigate every aspect of target companies, from the macro (such as its corporate structure and tax strategies) to the micro (including such minute details as the size of font the company uses for disclaimers on its packaging or where the company obtains its water).
According to GCA founding partner Chris Milenkevich, "we created the GCA Report as an independent source for comprehensive due diligence information for investors, landlords, banks, insurance companies--really anyone doing business with a cannabis company."
The Reports have been designed for use as "quality of operations" documents for evaluating investments and are prepared to the exacting standards expected by the investment and finance communities. Reports provide a complete snapshot of the company in addition to a deeper evaluation of the issues involved, looking closely at legal and regulatory issues at both the state and local levels.
According to recent reports, federal cannabis legalization would lead to an overall market value in excess of $35 billion annually by 2020, making it larger than both the organic food and U.S. wine industries. The potential return on early investment has caught the attention of some of the financial world's savviest players in an industry that until recently was dominated almost exclusively by new boutique investment firms focusing solely on cannabis.
"When I was practicing law on Wall Street, my clients hated surprises, and I spent hours preparing extensive due diligence reports to avoid them. My partners and I knew that we needed to bring that same kind of sophisticated due diligence and vetted information to the legal cannabis industry. Experience has also taught us that as investments in the cannabis industry continue to increase among both private equity and institutional investors, the need for a higher caliber of scrutiny will not only be beneficial, it will be essential."
About Gotham Cannabis Associates: Gotham Cannabis Associates (GCA) provides independent, comprehensive due diligence reports on the business and compliance status of innovative cannabis companies. The GCA team's extensive experience in law, finance, and business, combined with a deep knowledge of the cannabis industry, uniquely positions GCA to cover both compliance and cannabis-specific business issues. For more information please visit www.gothamcannabisassociates.com.
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SOURCE Gotham Cannabis Associates