Is There a ‘First Rule’ of Cannabis Investing?

Is there a ‘first rule’ of cannabis investing?

Do your homework. Like any other investment, read as much as you can about the cannabis space, especially the regulatory environment, along with the historical performance of any individual investments you may be considering. In addition to individual stocks, you can also invest via a broker in a broader financial product like an exchange-traded fund (ETF) that bundles several securities. Here are some cannabis ETFs of note:

• AdvisorShares Pure Cannabis ETF
  (NYSEARCA: YOLO)
• Amplify Seymour Cannabis ETF
  (NYSEARCA: CNBS)
• Cambria Cannabis ETF
  (CBOE: TOKE)
• ETFMG Alternative Harvest ETF
  (NYSEARCA: MJ)
• Global X Cannabis ETF
  (NASDAQ: POTX)
• The Cannabis ETF
  (NYSEARCA: THCX)

If you feel you could use the help of a professional in making your investments, there are many advisors and bankers that specialize in cannabis.

OPERATIONS

How do I choose the best traceability or Point of Sale software?

With the large number of software options for both traceability and POS software, it can be challenging to know which to choose. But it’s crucial to get it right because this software will form the core of your business’s inventory management system (IMS). Malfunctioning or wrongly inputted IMS software is often the main source of regulatory issues in cannabis. Systems that combine traceability and POS functionality need to be evaluated in three ways. Any system that can satisfy all three of these needs will make your business far more profitable:

API compatibility. The system you choose should be able to interact seamlessly with your state’s application programming interface (API) for tracing cannabis product. Many operators have faced hundreds of thousands of dollars in fines and lost employee hours because they used a system that failed to properly report information to their state’s electronic traceability system.

Reporting capability. Look for a system that provides strong data reporting. These systems monitor your entire operation and can be used to help you control your business better by preventing or identifying employee theft, monitoring inventory for trends in sales and more.

Ergonomic design. Employees will interact with this system several times a day and you want that interaction to be as smooth and efficient as possible. Tasks that take employees even a few seconds longer than necessary each time can turn into a real cost for your business in the aggregate.

ASK GCT CONTRIBUTORS

• Phil Valvardi
  CFO, Global Go
• Ryan Fingerhut
  Director of Client Services, Global Go