California’s marijuana industry is seeing some major money, with investors pouring millions of dollars into new bud ventures. Recently, Esquire reported San Francisco 49ers football legend and four-time Super Bowl champion Joe Montana was part of a $75 million investment made on a California marijuana company. Our Los Angeles marijuana investment attorneys know this was actually the second time Montana had gone in on such a venture, the first time pouring funds into a Canadian marijuana media company called Herb, which as of mid-2017 had raised $4.1 million to expand its venture to the U.S.
Montana explained his reasons as somewhat philanthropic, saying he supports the industry as a whole because he believes in the power of the plant to offer pain relief with the potential to blunt the raging opioid crisis. (A number of retired football players have said they prefer pot for pain management.) And yet, he himself won’t cop to being a cannabis user, something that still apparently speaks to the stigma that followed the drug for so long. There is also a possibility that he, like many marijuana investors, is reticent to speak too much no the topic given the fact the drug is still illegal at the federal level.
Los Angeles marijuana investment attorneys know that first of all, the profile of cannabis company investors differs from that of the norm. Part of this is because many of the cannabis start-ups are simply too small to go for the big fish. What they can do is seek buy-in from single, high net-worth individuals. Another reason these arrangements are atypical is because investors need to know there are some elements that are a bit in the legal gray zone. Huge firms aren’t likely to buy-in for such a risk with relatively low returns (compared to their average). Most of this stems from the fact cannabis remains categorized as a Schedule I narcotic. Continue reading