#22 - Buyer Beware! Check These 4 Things Before Buying a Weed Stock

In this episode we explore 4 common overhangs which can weigh on Cannabis Stocks. Most of these things are unique to small cap and venture investing. - Overhang: Factor which negatively impacts a stock (typically short to medium term) - How this helps answer "Is This the Right Time to Buy"? 1. Cap Table / Share Structure - Understanding the importance of the cap table - Why previous rounds of financing matter and the "Game Theory" involved - How warrants and cheap paper can drag on a stock 2. Share Unlocks - Unlocks can create a huge overhang, real or perceived - How Mergers & Acquisitions create large unlocks - Resource for US MSO unlocks: https://www.statesidecannabisinvestors.com/calendar 3. Timing - Examining two low volume seasons: Summer & Tax-Loss Period - Debating if timing matters for fundamental investors 4. Capital Raises  - Why capital raises drop the share price - Why capital raising is actually not a bad thing in the long-run - What to look out for (straight equity vs debt vs warrant coverage) - How to Predict a Future Capital Raise **Note: Episode was recorded prior to MedMen/Pharmacann being called off (but the concept still applies)