From Cryptocurrency to Cannabis

A few days ago I talked about how to make money in cryptocurrency without actually investing in cryptocurrency. The last few days most of the cryptocurrency investors have probably been thinking about pain relief, so let’s move from cryptocurrency warrants to cannabis warrants.

A new SPAC (Special Purpose Acquisition Company) began trading a few days ago, with the goal of purchasing a cannabis related company with a “particular sector focus that includes compliance, business intelligence, brand development and media.”

While I don’t have a particular interest in cannabis investing, it is a hot area of the market, and can provide some volatility for arbitrage trading. And, with the market joining the cryptocurrency selloff, I thought taking a quick look at a cannabis play on a Friday afternoon might be very appropriate.

My initial interest in MTECU is because of the potential warrant play. But if you are looking for a play in the cannabis area, why not consider one that will give you a potential warrant play, if management can find a suitable takeover target.

And, speaking of management, belief in the management team is probably the most important aspect you should consider in purchasing a SPAC.

I’d give the management team here a mixed / to positive review.

The MTech Acquisition Corporation (MTECU) Executive Chairman is Steven Van Dyke, and the CEO is Scott Sozio.

Mr. Van Dyke and Mr. Sozio are both co-founders of Hypur Ventures, which as of September 2016 had invested a little over $10 million in the cannabis industry. From their website they have investments in around 8 different cannabis related companies in compliance, business intelligence, and branding.

Mr. Sozio has about 4 years of experience investing in the cannabis industry, having led the original investment by Mr. Van Dykes’ family office into the industry. And it appears this was also Mr. Van Dykes’ first cannabis venture.

So, not a ton of time in cannabis for these two (chuckle), but they both bring what appear to be strong financial backgrounds  to the table. The limited time in the industry is why I’d give the team a mixed review, but decide for yourself if the 4 years of exposure (chuckle number 2) is enough for you to trust their cannabis acumen.

If you’re looking for a future warrant play and want to combine it with a cannabis play, keep an eye on this one.