The market for legal cannabis is booming right now, and it shows no signs of slowing down. According to a report released by New Frontier Data and ArcView in 2017, the legal cannabis industry grew by an astonishing 33% in just one year. That number is projected to hit $21 billion by 2021. As such, there are a host of new companies popping up that cater specifically to people who want to invest in cannabis-related businesses or offer services that have something to do with the industry as a whole – think business consulting, marketing and PR services, etc. One of these newer companies is called Euphorian Capital Corp., which recently went public on the TSX Venture Exchange (TSX-V). In this article, we’ll take a look at what makes Euphorian Capital different from other stocks on the market today, what their business model entails, and whether investing in them might be the right move for you.
What is Euphorian Capital Corp.?
Euphorian Capital Corp. is a private equity firm based in Vancouver, Canada. The company specializes in cannabis-related investments and financing, real estate investments, and business expansion services. Euphorian Capital has several subsidiaries including Euphoria Canada Inc., Euphoria Holdings USA Inc., and Euphoria Media Corp. All of these companies work together to deliver turnkey financing and growth strategies to cannabis-related businesses. Their flagship fund is the Euphoria Growth Fund, a private equity fund that has invested in over 20 companies since its inception in 2017. The fund has also made a number of real estate investments, including the acquisition of a 3,000-square-foot cannabis cultivation facility in Washington State and the purchase of 9 acres of land in Las Vegas, Nevada where they intend to build a high-end cannabis cultivation facility.
Why Invest in Euphorian?
The legal cannabis industry is projected to grow to $50 billion within the next decade, and Euphorian Capital is well positioned to capitalize on that growth. In addition to its impressive track record of making investments in cannabis-related businesses, Euphorian Capital is also well capitalized with $4 million in cash and no debt. Notably, Euphorian Capital was created to fill a specific gap in the cannabis industry. While there are a lot of companies out there that are focused on the cultivation side of things, the investors’ side of the industry is less well represented. As such, Euphorian Capital is a rare opportunity for people who want to invest in the cannabis industry to find a well-established, reputable fund like this one.
How Does Euphorian Capital Work?
The company’s investment strategy is fairly straightforward: it aims to acquire equity stakes in cannabis-related businesses that are in need of capital. Euphorian Capital provides funding for these businesses in exchange for a significant equity stake in the company. As the fund’s stakeholders, Euphorian Capital’s investors also have a say in how these businesses are run. For example, Euphorian Capital’s management team is in the process of acquiring a cannabis retail store in Las Vegas, Nevada. The store is called Euphoria Dispensary, and it is currently owned by Euphorian Capital’s founders. Euphorian Capital will purchase the company by issuing its founders shares in the fund in exchange for the company. With this acquisition, Euphorian Capital’s stakeholders now own a stake in a cannabis retail store.
The Bottom Line
Overall, Euphorian Capital is a very interesting company with a strong focus on the business side of the cannabis industry. With its founders having already made a number of high-profile investments, Euphorian Capital is poised to continue growing and expanding its portfolio in the coming years. With cannabis stocks becoming increasingly popular over the past few years, Euphorian Capital is a company that stands out from the crowd. With its strong business model and focus on the business side of the cannabis industry, Euphorian Capital is a company that cannabis investors shouldn’t miss out on.
