It’s hard to overstate the importance of the 2018 Farm Bill for the American cannabis business – and the folks who’ve had the foresight to follow along with our cannabis investing research.
As my readers have seen with the market-crushing slew of double-digit gains in our model portfolio, the Farm Bill was like flipping the switch on a money-printing machine.
But there’s another, far less well-known law on the books. This is going back to 2012, although it wasn’t fully implemented until 2016.
I mean the Jumpstart Our Business Startups (JOBS) Act. It was meant to encourage the funding of small businesses while easing the the burden of regulatory compliance. The Act makes it possible for a business to raise tens of millions of dollars in capital from anyone – a huge boost for most early-stage startups.
No doubt that’s great news for America’s economy…
… But it’s an absolutely earth-shattering development for marijuana investors. It’s right up there with federal legalization in terms of unleashing profit potential.
It opens to the door to a galaxy of investing opportunities in the cannabis sector.
So let me show the kinds of profits that are possible when you know how to step right through…
Take Your Seat… at the Dealmakers’ Table
Over the past couple of weeks, you’ve heard us talking about the incredible opportunity lurking in private deals in the marijuana business.
I’m talking about serious profits, like early investors in The Green Organic Dutchman Holdings Ltd. (TSX: TGOD, OTC: TGODF) experienced before it went public. Some folks were able to turn a $10,000 investment into $200,000.
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Another great example – Tilray Inc. (NASDAQ: TLRY). Private investors could have turned that same modest grubstake into $379,000.
Or how about the monster $3.2 million early investors could have made investing privately in Aurora Cannabis Inc. (NYSE: ACB).
The fact is, investors got in on the ground floor, right alongside the companies’ founders, all through private investing – the very opportunity the JOBS Act has created.
The law has eliminated the need for expensive, time-consuming registrations and filings at the U.S. Securities and Exchange Commission (SEC), which has in turn made raising capital far cheaper for startups.
Very early stage companies can raise needed seed capital at virtually no cost, in fact, as the Act has made it possible for these operations to access some $2.7 trillion – a dollar figure that dwarfs the amounts raised in public markets.
So now, essentially anyone with money to invest can call “dibs” on a portion of the massive value created by companies before they go public.
All because of a total overhaul of one regulation, and a new one in the mix.
Now, I know “regulation” can be a bit of a dirty word in D.C. and out there among investors, but please understand: I’m talking about the right kind of regulation here…
This Creates Potential for Cannabis Investors
The first big change was an overhaul of Regulation A – now called “Reg A+.” The changes allowed companies to raise up to $50 million from anyone.
Before this, investors would have to be “accredited,” which meant a minimum net worth of $250,000 in liquid assets or investments.
THREE STATES just legalized marijuana, and these three stocks could potentially see a 1,000% boost. Click here to learn more…
At the same time, in the “back office,” a company could file a new, simpler, and altogether more inexpensive form with the SEC.
But there was another big change – one aimed squarely at helping startups get out of the garage.
This was the addition of Title III of the Act, which introduced a completely new regulation. Title III essentially took the massive “crowdfunding” social phenomenon and brought it into regulatory harmony under the (aptly named) Regulation Crowdfunding.
Known as “Reg CF,” a company can list with an online funding portal and raise just over $1 million – all with just a one-page form. That’s not enough for a more mature company, but this is more than enough money for a brand-new startup looking for the seed capital to get started.
Thanks to all the new regulations, it is now possible for startups to raise money from anyone and for retail investors to get in on ground-floor opportunities.
But while it’s now entirely possible to “get in” on the next, say, Canopy Growth Corp. (NYSE: CGC), doing so can be pretty tricky…
What Everyone Needs to Know About Private Investing
Investors are just beginning to get to grips with the massive profit-making implications of the JOBS Act, let alone the cannabis sector.
But there’s still a real need for investors to tread carefully; plenty of everyday investors have little or no experience investing in private companies.
After all, just about two years ago, this kind of thing was the exclusive preserve of the top 0.01% of investors.
I went so far as to create a primer of sorts for my new research service, the Cannabis Venture Syndicate, to show people how to navigate private deals successfully.
Successful private investors – including regular folks who’ve gotten their feet wet – understand things like the types of legal entities that companies can form, for instance, and how to quickly and accurately value a company.
What’s more, the best private investors quickly figure out how to build a “pipeline” of deals, the better to become a “Marijuana Millionaire.”
Meanwhile, my team and I are busy ’round the clock vetting the kinds of opportunities to give our Members the best shot at life-changing wealth. Vetting and research are two absolutely critical steps for private investors.
I like to think of it as boxing up opportunities and bringing them right to our Members’ desks.
We’re sharing our analysis, too, with deal memos and due diligence reports, so our Members can see exactly what we see in these deals.
The next Aurora is out there, possibly even right now, and this is the way to find it. Of course, having a network of other private cannabis deal investors alongside you is helpful for building that robust deal pipeline.
Let me show you what one of the Syndicate’s winning private cannabis deals actually looks like. I think you’re going to like what you see…
In on the Ground Floor of a Breakthrough Cure
The very first company I brought to the Syndicate is almost in science-fiction territory. It’s building custom cannabis-based compounds to be used in medications.
One of these could actually cure multiple sclerosis, and the addressable market for just a couple of the drugs the company has patented could drive the value of this firm north of $50 billion.
The cure is possible because of a tweak the company’s researchers made to the cannabidiol (CBD) molecule.
Think of it as “CBD 2.0.”
Syndicate Members who chose to move on this are investing privately in this company while it’s valued at $100 million.
But… if only two of the 25 patented cannabinoid molecules are successful in providing treatment, the 500-fold growth to $50 billion could mint a few millionaires; it’s very easy to see how.
But the private investment opportunities don’t stop there…
In total, I’ll be bringing up to six deals to Members of the Cannabis Venture Syndicate over the next year, where we’ll have the chance to invest like the top 0.01% once did.
These 3 Stocks Are the Key to 2019’s Greatest Profits
The 2018 midterm election was a turning point for the cannabis industry.
We expect nothing short of historic profits by the end of the year.
But not all pot stocks will hand you life-changing wins. In fact, often the companies making headlines are least likely to see the biggest gains.
These three stocks, on the other hand, are flying under the radar… for now. Each of them could see exponential stock price acceleration at any moment, and if you get in before that happens, you could turn a token stake into a lifetime of wealth.
I don’t know of any other sector providing anywhere near this level of growth now.
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