1933 Industries (TGIF.C) has engaged a New York-based advisory firm to help guide the company’s development over the next 12 months.
CB1 Capital Advisors specializes in consulting companies involved in the supply-chain of cannabinoid-based wellness solutions, products and therapies and is backed by a notable expert advisory board which includes industry heavyweight, Lorne Gertner.
Gertner currently chairs HG2 Capital, is CEO of Hill & Gertner Capital and is co-founder of the Cronos Group (CRON.T), which Marlboro maker, Altria (MO.NYSE), purchased in December 2018 for CAD$2.4 billion.
A well-known philanthropist, Gertner established himself as a successful cannabis visionary back in 2004 when he founded Canada’s fist licensed medical marijuana producer, Cannasat Pharmaceuticals, now known as Cynapsus Therapeutics.
Almost 15 years later, Gertner continued to lead the way in cannabis by branding with Tokyo Smoke, a retail chain of cannabis coffee shops which got snapped up when Canopy Growth (WEED.T) bought its parent company, Hiku Brands, in a share swap worth approximately $269.2 million.
Gertner is also joined by Dr. Julie Holland and Dr. Ethan Russo, leading figures in cannabinoid research and medicine.
Holland is a psychiatrist and psychopharmacologist and author of bestselling novels Weekends at Bellvue and Moody Bitches.
She currently monitors a clinical study on the efficacy of cannabis in the treatment of PTSD and is the editor of The Pot Book: A Complete Guide to Cannabis.
Russo is a board certified neurologist, psychopharmacology researcher and director of research & development, International Cannabis and Cannabinoid Institute (ICCI).
The board also has considerable political clout with two-time presidential candidate Gov. Gary Johnson, the 29th governor of New Mexico and former CEO of Cannabis Sativa (CBDS.OTC).
Dave Charnick, founder of Kalyx Development, rounds out CB1’s advisory board with his deep experience in converting existing real estate assets to meet the needs of cannabis producers.
Who’s in charge?
CB1 Capital Advisors is led by its chief investment officer, Todd Harrison.
Harrision is a legal cannabis activist and Wall Street icon with over three decades of experience managing risk and researching financial market strategies with such public market investment giants as Morgan Stanley (MS.NYSE) and Cramer Berkowitz.
Harrison’s work has been featured in CNBC and Bloomberg and has been quoted and covered in such publications as The Wall Street Journal.
CB1 is on contract for one year to provide strategic and business development advice to 1933 Industries, including analyzing investment and partnership opportunities focusing on health and wellness through cannabinoids.
The prohibition on cannabis which started in the 20s and 30s as another extension of Jim Crow, is slowly and irrevocably being eroded. There’s no putting the genie back in the bottle, legal cannabis is here to stay.
As more of the 100-plus cannabinoid compounds find their way into medicinal or wellness applications, the legal cannabis and hemp markets will continue to grow rapidly, creating a global cannabis economy worth over $146 billion by 2025.”
“We believe the cannabis industry is in the nascent stages of a multi-year efficacy-led bull market and view cannabis and hemp as ingredients for an array of end products and use-cases that include biopharmaceuticals, beverages & nutraceuticals, cosmetics & vanity and pet supplements,” Harrison said.
CB1 Capital’s approach to the marijuana market is summed up in the company’s trademark: “Cannabis isn’t about getting high; it’s about getting well.”
1933 Industries, with its vertically integrated portfolio including licensed medical cannabis cultivation and proprietary hemp-based CBD-infused products, makes a good fit for CB1 Capital.
What lies ahead
As the legal cannabis industry continues to develop and more jurisdictions open their doors companies like 1933 Industries will have to lead the way or get trampled.
Gertner’s vision and established industry clout along with the expert ensemble at CB1, could keep 1933 Industries a step ahead of the crowd in establishing its own successful branding, making it a leader in the emerging world of cannabis retail.
The next three months will be integral in proving the success of this partnership.
1933 Industries was in the news recently when the company announced growing its distribution network to 46 U.S. states through its 91%-owned subsidiary, Infused MFG.
The company also announced that Infused MFG will be gifting its CBD Relief Cream and CBD Elixirs at the WOW Creations Celebrity Gift Lounge taking place on Feb. 22, 2019, ahead of the 91st Academy Awards.
The venue plays host to Oscar nominees, presenters, A-lister celebrities and industry influencers, and takes place at the W Hotel in Beverly Hills, California.
Company shares climbed four cents from the beginning of the week to settle at $0.54 by afternoon trading.
Currently the company has 238,990,005 issued and outstanding shares with a market cap of $125.4 million.
–Gaalen Engen
Full Disclosure: 1933 Industries is an Equity.Guru marketing client.