MJBulls 0039 Arcadian transcript

Dan Humiston: [00:00:00] Today's show and the following message are brought to you by a former guest Bob Hoban founder of Law Group which is the first exclusive cannabis law firm. They have offices throughout the U.S. and the world. listen to the MJBulls Episode 7 or go to Hoban law for all your cannabis legal needs.


Matthew Hodgren: [00:00:18] Once we're in a business our specialty then becomes consolidation. Looking at the public markets replacing debt bringing in bigger equity. That's really where we serve our companies the best in the place with which companies should take up Arcadian as a potential investor


Dan Humiston: [00:00:37] From Buminit media. It's the MJ bulls podcast a show about raising cannabis capital.


Dan Humiston: [00:00:46] Dan humiston and on today's show the cannabis investor spotlight shines on Matthew Nordgren the founder of Arcadian a cannabis growth fund.


Dan Humiston: [00:01:01] Today the cannabis investor Spotlight Series we're joined by Matthew Nordgren founder and managing director at Arcadian. Matt thanks for being on the MJ bulls podcast.


Matthew Hodgren: [00:01:10] Dan thanks for having us. Real excited to talk with you this morning and thankful for vehicles like yours that allow people to hear what's happening in this industry. I think it's one of the most important things we can do is talk about what's happening educate on fun things that are going on.


Dan Humiston: [00:01:25] Well I'll tell you before we jump into it I got to. I got to tell our listeners this story because last night like always I start preparing for your interview and like always I put your name into Google and the search results came up. And they're not like always. I mean first off I see that you were the quarterback in Texas which is that big time football and I'm like wow that is so cool. And then I read on and it's like you're on the national champion team that beat USC which is one of the greatest games ever. And I'm like and then I look you are two degrees in less than four years which is unheard of. He went on to play in the NFL. You got two more master's degrees and then you come back to dallas. This is crazy it just keeps getting better. You star on a reality show Bravo's Most Eligible Dallas. Keep in mind I found all of this out on the first page of Google. You got to be the only person in cannabis now whose life is more boring.


Matthew Hodgren: [00:02:18] Well I'm not as young as I once was. I've had a few years to accumulate some news. The good news about this industry in particular is that so many walks of life have entered in so many ways to hear that I may be one of the least less boring is quite fun. But all of those experiences accumulated for me to be in this position to do what we're doing at this level.


Dan Humiston: [00:02:42] Yeah and all kidding aside for our listeners. They need to know that you're really accomplished investor. I mean you've managed over seven billion dollars in transactions in your company Arcadian is one of the most well-known cannabis investment funds now Arcadian investment approaches is kind of unique in that you're only investing non plant touching cannabis ancillary business why'd you go that route.


Matthew Hodgren: [00:03:03] Good question. I think it's important when people ask themselves why Arcadian and additionally why non touch ancillary investments. The real reason why is because the institutional private equity investor base that I've dealt with in my career simply did not have the risk appetite for investing in an asset class that did not have federal approval. Even in today's world. Institutional investors still cannot invest in those businesses. We foresee that being the case for the next several quarters ahead. So sitting here today it's actually turning out to be probably economically today the best way to invest as well.


Dan Humiston: [00:03:44] You've a lot of really well-known companies that you've invested in that are in your portfolio and a lot of that has to do with your philosophy on investing in later stage at which you invest in companies.


Matthew Hodgren: [00:03:56] Yes, we've been able to bring in some pretty big names and I think the reason for that is because our investment strategy is to invest in growth rounds for companies that service the industry and by default. That means companies that are relatively mature. You see some of the bigger names because we typically don't invest early with a seed or angel like mentality. We really are mid stage early stage growth investors.


Dan Humiston: [00:04:21] If a canvas company right now is out there listening to this and want to work with you what do you need from them.


Matthew Hodgren: [00:04:26] I think it's really important for any company to take into consideration various types of investor appetite that are out there. We do value understanding a business early looking under the hood for a later opportunity only benefits us at the same time. We have mandates within our partnership agreements that we are looking for growth opportunities which means they've got to have a year or two traction revenue, market share. They have to be out for us to be able to invest our expertise is more along the lines of when a company has solved a lot of that and truly is in a position to take in capital for uses such as hiring new salespeople moving to a new market making an acquisition that's a either synergistic business or a bolt on for strategic reasons. That's where we start to be helpful. And then once we're in a business our specialty then becomes consolidation. Looking at the public markets replacing debt bringing in bigger equity that's really where we serve our companies the best in the place with which companies should take of Arcadian as a potential investor.


Dan Humiston: [00:05:35] Just a quick shout out to one of our former guest cannabics Pharmaceuticals which is a publicly traded cannabis biotechnology company trading under the symbol Listen MJ bulls Episode 18 to learn about the developments in their cannabinoid based cancer treatment therapy. And now back to the show.


Dan Humiston: [00:05:56] Let's talk about the investor. I mean you guys raise money to because that's what you used to deploy with these companies. How does someone invest with Arcadian why does it make sense to let you guys manage their cannabis investment rather than them try to do it on their own.


Matthew Hodgren: [00:06:11] Yeah. Couple main points on that. Number one this is an industry that is largely unregulated and what that means is there aren't the normal data points and resources available for investors to make decisions on companies. And because of that it's really important to have somebody who has spent a lot of time in this industry. Is at all the proper gatherings and has all the right relationships in order to determine what companies are going to do what when where how and why the next point is. There was a time a year or two ago that companies just really needed capital although they would prefer strategic investors. Capital was capital they just needed it and there wasn't a ton out there. Now we're in a world where the best deals are not struggling for capital. The best companies are saving allocations for us, want us in their deals. I think those are some of the reasons why it's really really important to invest with a professional in this space. And I'm not just making the case for Arcadia. I think we're one of the best out there and I think a lot of people would agree. But the case really is being made that without the certainty of information with the best deals not needing capital and having to make decisions on who they take capital from. And by the way it's very difficult for them to take some private rich person or famous person's capital when there's 10 funds that they need to have in that deal because we have portfolios that they need to leverage. So nine times out of 10 they do take our capital. So I think that's really important. And then ultimately the probably maybe even the biggest part of that equation is the fact that there's still a lot of work to do and you need a group in there making sure that these companies continue to make the right decisions help the partners make sure that we get in and out of these deals like we should. And so for the next several years it's not just the investment and sit back and wait and see need a professional team in there making sure it does what it's supposed to do.


Dan Humiston: [00:08:11] We've been speaking with Matthew Nordegren from the Acadian group and all of the information will be on the M.J. bulls Web site. And if you're interested in finding more we'll have everything on the website. Matt. Thanks for taking time out of your super interesting life to be on our show.


Matthew Hodgren: [00:08:27] We appreciate it. And to everyone who's listening I'll encourage you to continue to listen to Dan and the Mjbulls podcast. So important that the public understands the tremendous amount of benefits this industry is going to do for the world the economic return is evident. But listening to these podcasts is what is going to make this better for everybody.


Dan Humiston: [00:08:48] Thanks for everything you do Matt. Good luck.


Dan Humiston: [00:08:54] Just a quick shout out to one of our former guest vividgro a cannabis lighting and technology company which is expanding its brand through organic growth and strategic acquisitions. Listen MJbulls Episode 15 or go to vividgro.com. To learn more


Dan Humiston: [00:09:12] Thanks for listening to the MJ bulls podcast. To learn more about today's guest or to become a guest. Visit our website at MJbulls.com. Today's show is produced by buminit media with original music composed by Jamie Humiston. I'm Dan Humiston and you've been listening to the MJbulls podcast.