Invest in an uncorrelated cash flowing asset that had significant upside potential if regulations allowed for it.
With the desire to find a legal way to invest in the probable legalization of marijuana, I spent two years exploring different opportunities in the space. MedMen is a company that is well capitalized, has manufacturing and marketing expertise, as well as a political voice.
Their model was to invest in cannabis licenses in states whose supply was to be heavily restricted therefore limiting the potential downside for the asset. These states include, California, New York, Nevada, and Florida. The initial investment was to return cash flow of somewhere between 6-30% per year, depending on execution.
MedMen is now a publicly listed cannabis company on exchanges in Canada and Germany.