With Ohio’s new adult use cannabis program commencing December 7th, investors’ eyes are wide. Both newcomers to the industry and established operators will enjoy a wide array of new investment opportunities.
MJBiz projects Ohio to become a $4 billion market by 2027. This statistic underscores the immense potential for investors. MedicateOH spoke with business leaders at Cannabis10X to learn about what potential investors should be considering, as Ohio ushers in the adult-use market in 2024.
A High Barrier to Entry in the Ohio Market
Jason Tropf and Holly Ford co-founded cannabis business brokerage firm Cannabis10x to help connect entrepreneurs and those seeking partnerships with established operators. The company aims to bridge the gap between industry outsiders seeking entry and operators looking for growth opportunities. “We can help those who are looking to enter the state of Ohio, as well as those who are already in the state, who have capital, and are looking to open a cannabis operation,” said Jason.
“There’s a high barrier to entry,” explains Holly, a best-selling author on franchising and award-winning franchise developer. “There’s licensing, there’s state regulations, but the partners that we work with are vetted for their differentiation, experience, and profitability in cannabis. The services we provide are to assist our partners in expanding their existing footprint, while working together to get licenses for franchisees all the way down to the municipal level, finding locations, training staff, and getting the t’s crossed and the i’s dotted, which can be very complicated., “ said Holly.
Noah Toney, Investment Broker with Cannabis10X shared a wealth of insights about the burgeoning cannabis market in Ohio. He shed light on the unique opportunities available for investors, particularly those looking to enter the industry from outside. “We help professionals in the cannabis industry find investors to partner with them and help grow their footprint both inside and out of their native state,” Toney said.
Franchising: A Strategic Approach to Expansion
One compelling avenue for investors is forming partnerships with established operators looking to enter Ohio’s emerging market. Toney emphasized the value of collaboration with operators seeking business partners to open dispensaries. This model allows investors to align with experienced players, minimizing risks, and leveraging the expertise of those already entrenched in the industry.
Franchising is a key focus for Cannabis10X, Toney said. Cannabis10X offers a two-fold solution for business owners with existing Ohio brands, as well as those looking to enter the cannabis space. Those with an existing brand who choose to expand via franchising can preserve equity while operating within a proven framework. This approach not only streamlines the expansion process but also fosters collaboration and compliance, addressing the intricate challenges of the cannabis industry. Those who are looking to open a franchise as a franchisee significantly increase their chances of succeeding as a new business owner by replicating successful models from other markets. They also receive ongoing support from the franchisor.
As Ohio prepares for 50 social equity dispensary licenses and 40 more cultivator licenses, the potential for franchising becomes particularly relevant. “Cannabis10X facilitates connections, ensuring that both franchisors and franchisees can leverage a broad network of investors and operators,” explained Toney.
Capital Raises: Connecting Brands with Investors
Navigating the complex terrain of capital raises can be a hurdle for both established cannabis businesses and new entrepreneurs interested in getting into the Ohio market.. Toney told us that Cannabis10X addresses this challenge by bringing qualified brands into the spotlight through webinars, dedicated landing pages, and a team of trained brokers. The company’s extensive network comprises over 25,000 investors with a combined wealth exceeding a trillion dollars. This broad reach ensures that brands seeking capital receive exposure to genuine and well-qualified investors.
Cannabis10x annually hosts investor events that open with cocktails & hor d’oeuvres, celebrity introductions, and is followed by 2 days of education and deal-making. Cannabis10X events include activities such as networking at black-tie ‘Speakeasies’, cocktails on the beach, and dinner cruises on the Gulf of Mexico.
This strategic approach to capital raises not only simplifies the process but provides investors with a curated selection of opportunities, reducing the risks associated with cannabis investments, Toney said.
Mergers and Acquisitions: Creating Synergies for Growth
Cannabis 10X facilitates face-to-face connections through live events, bringing together investors and brands seeking mergers and acquisitions. “This personalized approach really allows businesses to pitch directly to potential investors, fostering relationships and creating synergistic opportunities for growth,” explained Toney.
The company’s founders, Holly and Jason, leverage their extensive communication backgrounds to find solutions and workarounds for the challenges posed by the industry’s ever-changing regulations. This unique skill set positions Cannabis 10X as a valuable resource for businesses seeking strategic partnerships and growth opportunities.
Micro-Investing for Newer Investors
As the industry undergoes shifts and expansions, those with a keen eye for timely investments can find lucrative prospects. Recognizing the diverse audience of Cannabis10X, Toney highlighted the potential for newer investors, including micro-investors. For those with a smaller capital base, Toney suggested that micro-investing might be a viable option, providing an entry point for individuals passionate about the industry but lacking substantial financial resources.
“Once it’s opened up federally and companies can transport between states, it’s really going to open up opportunities for these smaller businesses. Once it is federally legal and they can transport and distribute all over the country without the hoops that folks currently have to jump through… I mean, the growth is going to be explosive, I believe,” said Toney.
Whether forging partnerships with established operators, exploring current deals, or engaging in micro-investing, the potential benefits are vast. As Ohio’s cannabis market continues to mature, those who seize the current opportunities may find themselves at the forefront of a rapidly expanding and lucrative industry.
Want to learn more about cannabis investment opportunities in Ohio? Make an appointment with Noah Toney here: Book a Call
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