Cannabis Will Be Normalized Before It is Legalized
My interview with Merida Capital’s Mitch Baruchowitz
A year ago, GrowGeneration (NASDAQ: GRWG) was $3 per share, now it is over $48. Skylight Health Group (NASDAQ: SHGFF) traded around $0.06 per share, now it is over $1.
What do these two companies have in common besides delivering ridiculous performance in the last year? Merida Capital’s Mitch Baruchowitz was an early supporter and investor in both companies. And the funny thing is that Mitch isn’t even a public investor, he’s a private equity money manager with over $425 million in assets under management across 56 companies, most of which are private. He also is the Chairman of the public SPAC Merida Merger (NASDAQ: MCMJ), which has $130 million in trust.
Mitch is one of the most thoughtful, unique, and honest investors in the cannabis space. I was thrilled to have the opportunity to learn from him during a recent conversation.
Here are some of the highlights of what I learned:
1. Cannabis will be the first market to be normalized before it is legalized, and people don’t fully appreciate how fast cannabis is being normalized.
2. The legal market is eating the illegal market. Due to safety, access, quality and choice, legal cannabis is now growing faster than illegal cannabis.
3. Investors need to pay attention to the importance of medical insurance and what will be deemed reimbursable and how that process will play out.
4. Market forecasters are underestimating just how big the cannabis market will be.
5. In the future, cannabinoids could be the biggest OTC drugs available and will be added to everything; think Advil and CBD together in a pill as just an example.
I’m still processing our conversation and if Mitch is right, there are profound investment implications to what he said.
One thing is for sure, more people should follow Mitch on Twitter: https://twitter.com/MeridaCap
I hope you enjoy this discussion as much as I did. Here is the link to the interview:
And here is the transcript: Interview with Mitch Baruchowitz Transcript