Green Acre Capital is a private investment fund targeted on the recreational marijuana industry and Canadian medical with consideration of international opportunities. The Fund plans to invest in different sectors of the cannabis value chain and to make an ecosystem among portfolio investments that will support fuel innovation and growth.
Green Acre Capital, Private investment company has already deployed more than $15 million into private firms in the cannabis careers Canadian sector a few years back, though little of it was invested in firms that cultivate. Matt Shalhoub (Managing Director) spoke with New Cannabis Ventures about the company special position as one of the few investment vehicles targeting on ancillary space.
Shalhoub, a beginning investor in Aphria, first begun seeing cannabis industry investment possibilities in late 2013 and early 2014 when medical regulation of Canada changed to permit business operations, and he began getting to know the marijuana industry. Two years ago, he made the plan to dedicate all of his time to the cannabis jobs and cannabis industry. The Green Acre Capital team also contains Tyler Stuart (Managing director) and a four-member advisory board that contains CEO Vic Neufeld, investor Shawn Dym, W. Brett Wilson and Lorne Gertner.
Green Acre Capital, which focuses investment of approximately $2 million per company, look beyond seed level but acts as a quite early investor, according to Shalhoub. The company purposefully has restricted its investment in cultivation, which has seen big capital flows, and targets on what it sees as an ignored ancillary space. Green Acre has no problem with direct cannabis firms and will consider processing, retail, or extraction firms.
Green Acre Capital raised $25 million via its Fund I and has deployed about sixty percent of that into 8 firms. Shalhoub expects the company will invest its remaining capital in Fund I current year into 4 or 5 firms and expects to release Fund II by the end of the year. With no lack of deal flow in Canada, Fund II follows a similar technique to Fund I, but Shalhoub will be more open to the idea of global investment for his fund. The top international markets the company will consider include Germany, Australia, and Israel, countries where federal legalization is processing.
Shalhoub is confident with the Canadian market will be a long-term international leader in the Cannabis space, the country others will look to building their market and making regulatory frameworks, and he guesses that the average investor will be capable of participating in ancillary and retail opportunities in the coming years after complete legalization in Canada.