The Arcview Group Launches First Member-Based Fund

Cannabis-Focused Investor Network Announces The Arcview Collective Fund; Members to Participate in Investment Decisions

CALIFORNIA:  The Arcview Group, the leading cannabis investment and market research network, announces the launch of its first member-based fund: the Arcview Collective Fund. Arcview members will have exclusive access to the fund led by Arcview Ventures Chief Investment Officer, Jeanne M. Sullivan and its CEO, Jeffrey Finkle. Their deep experience in the cannabis sector, professional investing and venture capital uniquely position them to lead Arcview Ventures and this first member-based fund.

The Arcview Collective Fund will uniquely and effectively allow Arcview cannabis investors to collaborate on investment decisions, providing exposure to a portfolio of diverse companies in this exciting space.

“Starting a member-based fund is a natural, logical step for us,” remarked CIO Jeanne Sullivan. “For years, Arcview has been introducing its members to viable investment opportunities in the cannabis space. In that time, members have asked for a way to combine their individual resources into something more substantial – a fund which enables them to be both diversified and dedicated to the cannabis sector.”

“This is the cannabis fund best positioned to source and evaluate early stage deals because every member is highly motivated to find the best. I’m so pleased that Arcview members have already responded so positively to this opportunity,” said Troy Dayton, Founder and Chief Strategy Officer of The Arcview Group.

“This new fund gives investors the benefit of an experienced team guiding a member-led investment process,” commented CEO Jeffrey Finkle. “I have been involved with this structure for a few years now and have seen how successful it can be. The Arcview Collective Fund is a great way for cannabis investors to put money to work in this emerging industry.”

Please reach out to info@arcviewventures.com for more information.

Altitude Investment Management Closes Cannabis Fund I at $30M

NYC Based Cannabis Investment Firm Successful Fund I Raise, looks to Fund II

NEW YORK: Altitude Investment Management announced that it will close Fund I on November 30, 2018 with $30 million raised. Fund I commenced March 1, 2018 and is currently invested in 16 companies which emphasize the fund’s focus on investing in a diverse range of early-stage to growth companies supporting the fast-growing legal global cannabis industry. Altitude is led by John Brecker, Jon Trauben, Michael Goldberg, and Roderick Stephan. Collectively, the partners have over 100 years of fund investment management experience and have managed investor capital in the alternative asset management space for the majority of their careers.

“Over the past year we have watched the global legal cannabis market grow, change, and begin to mature,” says partner John Brecker. “At Altitude, we believe in the long-term growth of the industry––our portfolio strategy rests on this premise and we are confident that the evolution of the legalized industry will continue to provide compelling global investment opportunities.”

As Fund I continues to deploy its capital throughout 2019, Altitude will be launching Fund II in Q1 2019. Fund II will continue Altitude’s focus on the ever-expanding growth opportunities within the global cannabis market with investments in companies that touch the plant as well as ancillary businesses supporting the industry. Altitude seeks to raise in excess of $100 million for Fund II.

Partner Michael Goldberg goes on to say, “As the cannabis industry matures, more companies will require significant growth capital to fund product, service and geographic expansion. In addition, increasing competition will create the need for consolidation, merger and acquisition and distressed investment opportunities. A larger capital base in Fund II will ideally position Altitude to take advantage of these opportunities.”

Fund I’s portfolio consists of some of the leading firms spanning the North American cannabis industry with concentrations in plant-touching operators/brands/distribution and non-plant-touching companies providing compliance, advertising/marketing, ag-tech and data solutions including:

  •  BDS Analytics, the leader in cannabis business intelligence.
  •  Canndescent, a leading California ultra-premium brand with world class management and best practices from consumer-packaged goods, advanced agriculture, and luxury lifestyle marketing.
  •  C4 Distro, a leader in the California cannabis distribution market that provides quality distribution services to California’s extremely fragmented market of suppliers and retailers.
  •  Enlighten, the leading in-dispensary digital marketing platform.
  •  Flowhub, a leading seed-to-sale compliance and robust point-of-sale SaaS platform in partnership with Hewlett Packard.
  •  Front Range Bio, an agricultural biotech company that specializes in tissue culture propagation of high value crops at industrial scale to improve reliability, efficiency, and safety.
  •  GrassRoots, a fully-licensed, vertically-integrated multi-state cannabis company active in cultivation, extraction, manufacturing, branding, and retailing.
  •  Loud Pack Farms, a leading California vertically-integrated cannabis consumer products company with a family of brands including Loudpack, Kingpen, Double Barrel and Honey Pot.
  •  PathogenDX, a provider of a patented DNA-based disruptive testing technology for state mandated microbial testing and environmental screening.
  •  Segra, a Canadian plant biotechnology company that specializes in industrial-scale plant micropropagation and plant genotyping services.
  •  Würk, which helps cannabis companies provide the necessary human resources and payroll infrastructure to manage their employee’s needs and to stay compliant with government regulations.

Partner Jon Trauben sums up Altitude’s Fund I strategy by saying: “Altitude focused on the industry as a whole – investing in the best management teams and business strategies of companies that will be foundational to this emerging industry. We sought reasonable valuation entry points taking advantage of early illiquidity and inefficiency due to the existing federal prohibition. As the cannabis market matures, Altitude believes that its portfolio companies will benefit from a rapidly growing global market, continued relaxation of prohibition, and the acceptance of cannabis as a medical, health and wellness, and adult-use recreational product.”

Ten New Investments In The Cannabis Space Look Attractive

By Jon Trauben, Altitude Investment Management

NEW YORK: Altitude Investment Partners, LP’s has made recent cannabis industry investments. During the period of March through August 2018, Altitude invested in ten companies: six of which were add-on investments to existing portfolio companies and four were investments in companies new to the Altitude portfolio.

The Altitude portfolio now consists of investments in 15 companies. The following is a summary of a selection of notable recent investments.

BDS ANALYTICS – Altitude made an add-on investment as co-lead in BDS Analytics’ Series B Preferred Stock $3.5 million capital raise. BDS is the leader in cannabis business intelligence.

This funding places BDS in a very strong position to execute the national expansion of its GreenEdgeTM software and to roll out its Consumer Insights & Industry Intelligence services to a much broader client base. Using the GreenEdgeTM sales tracking software, BDS Analytics is able to generate actionable insights pulled from hundreds of dispensary partners’ point-of-sale systems and closely study the behaviors and psychographics of cannabis users through its Consumer Insights Group. Its Industry Intelligence Services enables the company to make accurate market-wide financial projections and help the cannabis industry make better informed decisions. We are very impressed with the management team. Based on extensive experience in other industries, BDS Analytics has developed proprietary software and services that provide its clients with really useful data and insights. Its value is reflected in the rapid growth and diversification of the BDS Analytics client base.

CANNDESCENT – Altitude made an add-on investment in Canndescent’s Series C Convertible Note $13 million capital raise. Canndescent closed 2017 as the #1-selling brand of cannabis flower in California with its market-leading effects—Calm, Cruise, Create, Connect and Charge and is taking that success to the vape and ingestible categories. Canndescent is a leading modern cannabis company by combining world class management with best practices from consumer-packaged goods, advanced agriculture, and luxury lifestyle marketing. The company is commencing a multi western-state expansion strategy. We took a small position in Canndescent’s Series B Preferred Stock raise and have increased our investment significantly based on the milestones the company has achieved in such a short period of time.

GRASSROOTS CANNABIS (AES Compassionate Care PA and Grassroots Compass Ventures IL) – Altitude made separate investments in both AES Compassionate Care Pennsylvania and Grassroots Compass Ventures Illinois. Each are fully-licensed, vertically-integrated cannabis companies that are active in cultivation, extraction, manufacturing and retailing. Both companies are managed by the same management team. Our investments in multi-state vertically-integrated operators will allow us to participate in the growth and value creation as the medicinal markets grow, new patients are added, and new approvals for qualifying conditions increase the patient base. Additionally, large upside exists when a planned rollup takes place and as these states legalize adult use.

FLOWHUB – Altitude made an add-on investment in Flowhub’s Convertible Note $3.3 million capital raise. Setting a new standard for the highly regulated industry, Flowhub offers dispensary and cultivation license holders a metrcTM integrated platform built specifically to simplify compliance, with data automatically sent to state regulators via an API. Flowhub’s award-winning software serves more than 300 of the largest retailers and cultivators in the United States. Flowhub processes over $1B in cannabis sales annually and is the top cannabis compliance technology recommended by state agencies. Flowhub has successfully created software which meets the regulatory and compliance requirements of each state and also creates a sticky customer with recurring monthly revenues. We are excited by the accelerating growth of this company

C4 DISTRO (Golden Systems) – Altitude made a lead investment in Golden Systems’ Class B Preferred Units $5 million capital raise. Golden Systems owns C4 Distribution Co. (a.k.a C4 Distro), a California- licensed distribution operating company. C4 is poised to become a leader in the California cannabis distribution market. California needs companies to provide quality distribution services due to the extremely fragmented market of suppliers and retail dispensary buyers. C4 has most recently added four new brands for distribution to its growing list of products. With service to over 160 dispensaries in southern California, C4 is experiencing accelerating month-over-month growth by leveraging its high touch business model to build close relationships with its customers. The distributor plays a material role in the supply chain as well as in creating and growing brands. We believe C4 has the right management team to capitalize on this opportunity.

PATHOGEN DX – Altitude was the co-lead investor in PathogenDx’s Convertible Note $3.4 million capital raise. PathogenDx provides DNA-based disruptive testing technology and solutions to the cannabis, botanical, food, and agriculture markets at an adaptable scale for both large and small testing facilities. The company offers growers, processors, producers, consumers, and ancillary services real-time data and information pertaining to the quality of their product, ensuring a safer commodity and preventing millions of dollars in losses from contaminated or spoiled crops. PathogenDx’s testing kits identifies bacterial and fungal contaminants and reduces testing time down to hours from the traditional petri- dish method which takes days. The company is in an enviable position as it fulfills a central regulatory need with cutting edge science, while alleviating existing bottlenecks.


Jon Trauben is a partner at Altitude Investment Partners, LP, a US-based, global venture capital fund that invests in a range of early-stage to growth companies supporting the fast-growing legal global cannabis industry. The fund is managed by Altitude Investment Management, LLC, (the “Manager”), whose members have been actively investing in the cannabis industry and have successfully invested in the alternative investment space for years. The Manager provides institutional quality investment management experience to its investors. The fund continues to accept new investments and plans to close the fund to investors later this year. 

Aurora Cannabis Increases Stake In Hempco To 35%

CANADA: Aurora Cannabis and Hempco Food and Fiber announced that Aurora has exercised 10,558,676 warrants to purchase common shares of Hempco for total proceeds of $4.3 million to Hempco. Consequent the warrant exercise, Aurora now owns 21,117,352 Hempco common shares, reflecting an ownership interest of approximately 35%.

“With this further investment by Aurora we are now very well capitalized to accelerate our various strategic initiatives to drive growth at Hempco,” said Diane Jang, CEO of Hempco. “Since taking the helm at Hempco, we have made a number of tactical and strategic moves that position the company well to take advantage of a number of opportunities in the health lifestyle food supplements market, as well as for the pet and equine markets. Additionally, with the positive vote on the second reading of Bill C-45 in the Senate, implementation of the new Cannabis Act is that much closer, which would position us very well for whole-plant utilization and further acceleration of our business plan. These funds, and the presence of a large, stable shareholder, puts Hempco in a strong position to pursue a multitude of opportunities and create further shareholder value.”

Terry Booth, CEO of Aurora, added, “This additional investment in Hempco was anticipated from Day 1 of our strategic partnership. We are pleased with the work done by Diane and her team, and look forward to supporting Hempco’s growth initiatives and capitalizing on the multiple opportunities this partnership creates for us. In addition to the warrants exercised, we intend exercising our option to buy founder shares, and take our position to north of 50%.

Investment Firm That Specializes In Marijuana Businesses Opens Local Office

ILLINOIS: A private equity fund management firm that specializes in investments in marijuana-related businesses is opening a Chicago office.

First Harvest Financial said it’s opening an office at the Chicago Board of Trade Building, 141 West Jackson Blvd., to fund companies in the medical cannabis market.

“We are fortunate to be an early entrant in the legal cannabis capital markets, which allows us to seek and fund the best proven companies in the cannabis space,” said Kevin Gillespie of First Harvest Financial, in a statement.