WHO WE ARE.The firm will invest in cannabis related companies that are already in operation and are looking to expand, and have a potential to grow. Tabu Equity Investments Inc. will also support these companies with an Initial Public Offering (IPO) or merge small companies to enable them to expand their operations in order to publicly list them. The following industries provide a huge opportunity for Tabu Equity Investments Inc. Companies licensed to produce and sell medical marijuana, and also extract cannabis oil, companies involved in marijuana crop enhancement, as well as indoor marijuana agriculture sector, hemp related natural health products, companies conducting research and development for the cannabis related products, companies involved in manufacturing of hemp supplement and distributors of medical marijuana.
Tabu Equity Investments Inc. will invest in ACMPR applicants, while also providing infrastructure support and assistance with the capital markets. All ACMPR applicants go through a 7-stage process. Tabu Equity Investments Inc. will focus on companies in stages 5 and 6. These companies have spent significant capital clearing security stages and requirements. Legal and development costs can be significant, however after clearing these due diligence stages and clearances, the likelihood of these projects going to completion rises significantly. Tabu principles have real world skills in this area, having consulted for several of these companies, completing projects with a high success rate.
Tabu is capable of not only enhancing production operations, but financing and corporate structuring as well. Relationships with regulators such as capital market regulators, stock exchanges and Health Canada are a priority for Tabu Equity Investments Inc. These skills are often either overlooked or non-existent and can lead to a project not completing in a reasonable period of time and often fail.
Most deals will be structured in a similar fashion, with Tabu taking a percentage position in exchange for financing or for arranging financing. Money raised will fund the completion of all facilities to the point of production. In addition to the percentage stake, Tabu may also acquire 50% of a producer’s crop in order for the Partners to manufacture other ancillary products such as oils and edibles under its own brands. This lab will be developed by Tabu during the third quarter of 2017. Tabu has plans to acquire positions in numerous Canadian producers, building its portfolio to a bookable value of well over $500,000,000. Tabu is currently raising up to $800,000 as a first round of financing.
The main source of revenue for Tabu Equity Investments Inc. will be from:
- Investment in legal cannabis companies. With the help of in-house research experts, Tabu Equity Investments Inc. will make strategic investment decisions that will generate excellent Return on Investments (ROI).
- Acquisition of legal cannabis related companies.
- Advisory service fees for legal cannabis related companies.
- Dividends: Tabu Equity Investments Inc. will also charge dividends or commissions on the profits made by these companies.
- Interests: Tabu Equity Investments Inc. will also make money by charging interest on loans made to cannabis related companies.
- Markups on acquired producer’s crop and profits from the sale of ancillary products such as oils and edibles under its own brands.
KEY SUCCESS FACTORS
- Tabu Equity Investments Inc. must have latest and advanced research capabilities for fundamental analysis data, technical analysis data and economic data to create a risk-adjusted performance rating for conservative investment evaluations for cannabis sector.
- International markets: Tabu Equity Investments Inc. must reach out to cannabis related companies in the international markets rather than relying only on the North American market.
- Any cannabis related company with growth potential would be the target of Tabu Equity Investments Inc., but still, in order to succeed customer and market segmentation is very important. The target businesses could be grow operations, edibles, cannabis processing, etc. Another segmentation could be small, medium and large-scale cannabis companies. Lastly, companies could be also segmented based on various stages of ACMPR application.
- Understanding the future competitors: Tabu Equity Investments Inc. has no direct competitors yet, but things might change, and thus, Tabu Equity Investments Inc. would have to keep the competitor activities in mind to stay ahead of them.
- Profitability: Tabu Equity Investments Inc. must maintain good operating profits and net income and manage strategy to control operational expenses.