Pooling resources and assets is what a corporation is all about. None of the shareholders can create something of lasting value on their own but together they can. The sum of all of our capital is greater than its parts. This is also the beauty of investment funds. Where a group of like minded investors can put together their money and get more bang for their buck. They can leverage their collective investment purchasing power and leverage better terms as a group versus doing it individually.
The danger begins when capital is being pooled but when any of the contributors loses control of their own money. When that occurs and the investor is a passive investor relying on the others, they have probably now purchased a security in the investment group and the “club” leader is now an investment adviser with a set of securities regulations to abide by.
If you are uncertain about whether or not your group is towing the line, contact a securities lawyer. This is typically worth the $400 or so for an hour of attorney time just to bounce ideas off of them and get some advice. Even if you don’t change your investment plan or fundraising strategy, you will probably learn something for a seasoned securities lawyer that will make your investment club better at what they do.
As a founder of One Gro (along with my partner PJ Martinez), I am often asked by friends and colleagues, “Are you planning to take One Gro public?”
My answer is basically this: I’m not planning on “going public” anytime soon, but reasonable minds can differ on this and even do around the proverbial company “water cooler” (You know, that place where people used to hang out to talk about “appointment TV shows” before streaming TV made everyone “spoiler policemen” and before Facebook and text messaging made face-to-face human interaction uncommon).
My personal One Gro “exit strategy” would look more like a merger or acquisition or staying private and closely-held. Or, if things go really, really well, maybe we get lucky and do the acquiring of a public company one day.
I see major marijuana consolidation on the horizon nationwide in the recreational marijuana industry and definitely in Oregon. Why should four different Oregon cannabis companies have four different delivery drivers, managers, CEOs, CFOs, etc.? Why buy supplies separately when you could pool the buying power of a consolidated powerhouse? Consolidation decreases duplicative inefficiencies and ultimately the consumer wins with lower prices.
Also, why should a cannabis company have to learn from scratch delivery logistics when there is an alcohol distributor in every town that already knows how to sling psychoactive organic chemicals made by plants and is already servicing state liquor licensees.
Liquor Will Consume Cannabis
I predict that after the regional alcohol distributor mergers settle down a bit, they will quickly turn their sites on marijuana. It will likely be non-public, closely hold alcohol beverage distribution corporations rather than publicly traded alcohol companies. They will be more likely to be the first Wall Street acquisition of Weed Street companies. Alcohol will likely do it before Big Tobacco, Big Pharma, or Big Ag. Then in the next twenty years you could ironically see some strange acquisitions of Big Ag and Big Pharma as the new monster companies take over the world. The future could be ETOH-THC post-acquisition powerhouses ruling the corporate world. What do you think? Comment below.
Another possibility is that the big marijuana players of Canada and the US West Coast will quickly consolidate over the next 18 months and WEED WILL ACQUIRE ALCOHOL thereafter, picking off a few distributors here and there and then continuing to merge.
Guess what this could mean: It is possible that Big Weed becomes bigger than anything else as alcohol loses consumer dollars everyday to new cannabis consumers looking for a healthier lifestyle or opiate users switching to THC at a huge loss to Big Pharma. The future is exciting to speculate about and will be even more exciting to live through and be part of. The next Apple or Microsoft or Google or Nike exists out there somewhere in cannabis land. There is someone you’ve never heard of before that will be the first Mark Zuckerman of cannabis. I love this industry!
One Gro on NASDAQ? A little bit kinda…
On a less serious note, today One Gro Investment Group‘s inhaler made it “on NASDAQ”……..via a press release. Ha. Seriously though, going public right now is a bad idea for a company like ours. We would much rather pursue a merger/acquisition strategy as we grow the company’s value via sales and thus proof of concept.
But if someone asked me, “Are you planning for an imminent acquisition?” my answer would be a guarded “not really.” It would be a costly acquisition now without the financials to back it up. We would be a very tempting acquisition but we would have to make sure the valuation represented next year’s value reduced to present value because I’m willing to bet on myself
But, in any event, One Gro Investment Group‘s inhaler made it “on NASDAQ”……..via a press release. Ha. Seriously though, going public right now in Canada seems tempting for the “easy money” but it’s expensive regulatory overhead that eats to far into the margins with very little to gain, in my not-so-humble-and-often-incorrect-but-usually-correct-more-often-than-not opinion.
Where Can I get a THC Inhaler Outside of Oregon?
Contact us about a partnership or licensing arrangement in your medical, rec, or not-yet-legal state. Text or call 541-897-2147 or send an email.
Where Can I get a THC Inhaler in Oregon?
House of Leaves
Way High 101
Green Room – Headquarters
Eugreen Health Center
Next Level Wellness
River Valley Remedies
Sweet Tree Farms
The Greener Side
The Herbal Connection
Buds 4 U
Oregon Bud Company
Green Ridge Apothecary
American Cannabis Company
Dab Town USA
House of Leaves
Patients Helping Patients
The Wicked Flower Shoppe
Alberta Green House
Attis Trading Company (Barbur, Cully and Gladstone)
Little Amsterdam Wellness Center
Portland Best Buds
The Green Remedy
Capitol Green Leaf
Green Dragon Herbal Clinic
Forward Looking Statements
While no forward-looking statements were intended and this blog post is just the private, personal musings of Mike Arnold, certain information set forth herein may be construed as “forward-looking information”, including “future oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements).
Information contained herein is not intended to constitute forward-looking statements nor does it contain any of the following (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company’s business, projects and joint ventures; (iv) execution of the Company’s vision and growth strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; (vi) renewal of the Company’s current customer, supplier and other material agreements; and (vii) future liquidity, working capital, and capital requirements.
Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment. While this is Mike’s personal opinion at this moment, none of this should be taken as fact nor as a permanent opinion.
These statements are not guarantees of future performance and any reliance should not be placed on them. Forward-looking statements are speculative and necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.
Although forward-looking statements contained in a placement memorandum may be based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements on a blog post will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update this blog at any time if circumstances or Mike’s opinions should change except as required by applicable securities laws. The reader is cautioned not to place any reliance on forward-looking statements in a blog post. That would be crazy and irresponsible. Do your own research and make your own opinions.
Over winter break of 2016, I spent hours researching the best patents and intellectual property. I settled for the purchase of the metered-dose THC inhaler rights from a brilliant scientist, Michael Hartman.
With the topnotch team we put together, they had us in 50 stores in the first week. What a great team!
Ask your local dispensary about the “One Gro Inhaler.”
In March of 2017, One Gro had no assets. We had ideas and a never-fail attitude. We willed into existence leases, capital, employees, plants, and then revenue. With revenues and proof of concept solidly in hand, we have ideas into a successful reality.