MJBulls 0039 Big Rock 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 hoban and Law Group which is the first exclusive cannabis law firm. They have offices throughout the U.S. and the world. Listen to MJbulls Episode 7 or go to Hoban law for all your cannabis legal needs.

 

Joyce Cenali & Scott Williamson: [00:00:18] The majority of what we focused on has been plant  cultivation and you know many brand. I'm a little bit on the retail side not as much on the retail side. We have done a little bit in the ancillary though you know we kind of want to diversify a little bit more into that area

 

Dan Humiston: [00:00:39] From buminit media. It's the MJ bulls podcast a show about raising cannabis capital. I'm Dan Humiston. And on today's show how big rock partners is connecting companies that are raising cannabis capital to companies and individuals who are investing cannabis.

 

Dan Humiston: [00:01:04] Today we're speaking to the founding partners at Big Rock partners a strategic advisory firm located in northern California.

 

Dan Humiston: [00:01:11] We're here with Scott Williamson and Joyce cenali and they're in their offices and you're in San Francisco. That's correct. Well welcome to the M.J. bulls podcast.

 

Joyce Cenali & Scott Williamson: [00:01:21] Thanks for having us.

 

Dan Humiston: [00:01:22] This will be an interesting interview for us today because you guys are sort of in between the cannabis companies that are raising capital and the investors that want to invest in the cannabis industry. Can you tell us a little bit more about big Brock partners to kind of get this thing started.

 

Joyce Cenali & Scott Williamson: [00:01:38] Sure thing. So big rock partners was founded by a group of folks that came from a bunch of different industries and pretty much all of us had some inroads into cannabis and in some way shape or form. And so what we do is we're a strategic advisory firm that helps companies and investors sort of come together at the focus food hospitality and cannabis. Many years ago big rock was formed as a family office and was really focused on hospitality and sort of food media area and then certain cannabis investments started to come into play and basically we've evolved the organization to be a partnership because we've had a huge number of accredited investors and family offices kind of knocking on the door to gain access to Angel seed stage series a company is in the cannabis space. So we provide kind of a diligent funnel for those investors to take a look at what we feel are some of the best brands mostly in northern California but across California at large.

 

Dan Humiston: [00:02:42] And so like if there were high net worth individual or family office that wanted to get into cannabis they would reach out to a company like yours directly and then you take it .

 

Joyce Cenali & Scott Williamson: [00:02:53] Yes we have a lot of and we're pretty diligent about that communication so terms the diligence process it goes both ways looking to make sure that the investor is accredited and sort of shares are our values great. And then similarly with brands that we work with as well.

 

Dan Humiston: [00:03:11] What are the things that cannabis companies right now that are raising money should be doing to get groups like yours attention.

 

Joyce Cenali & Scott Williamson: [00:03:17] Yeah well I'm going to put it into a couple of different buckets. First and foremost on that on the diligence piece there's been some transition in California the legal market rolling out as the January 1st and then a lot of substantive changes taking place on July the 1st. Companies are in some cases having to transition from the former method that businesses organized which was through either a nonprofit or a mutual benefit not for profit corporation. So you're seeing a lot of transitions on that information and two operating companies and in some cases a company is three different entities a holdco with a couple of different actual operating companies underneath it. So we really look at how are they creating a proper investment vehicle that is appropriate and that you know you can not only put money into but you can get money out eventually. So that that diligence piece is one of the first important areas. The second is obviously revenues and are they trending in the market do they have something special and that would come in to sales and distribution stability and also do they have any sort of secret source or IP that really specialized. And then the third category would be people we like to work with great teams that have strong networks have built great the that have surrounded himself with strong managers and integrate stuff.

 

Dan Humiston: [00:04:43] You're in Northern California and I know most of your focus is is in northern California but you're pretty much open to just about any cannabis investments right now is that correct.

 

Joyce Cenali & Scott Williamson: [00:04:53] Yeah it is. I would say we lean a bit premium to some of the brands that are going to be a little bit more middle market focus maybe aren't necessarily aligned with our appetite but if you have a really great trending product it's definitely something that we want to take a look at like we have done. I would say the majority of what we've focused on has been plant touching across cultivation and you know manufactured brand I'm a little bit on the retail side not as much on the retail side. We have done a little bit in the ancillary. So you know we kind of want to diversify a little bit more into that area you know where we're pretty agnostic.

 

Dan Humiston: [00:05:31] Okay I'm sure our listeners are going to find it encouraging because I know a lot of a lot of our investors are still skittish about touch anything that touches the plant. So they're looking for opportunities outside of that as well so that's that's interesting.

 

Dan Humiston: [00:05:46] Just a quick shout out to one of our former guest vivid grow a cannabis lighting a technology company which is expanding its brand through organic growth and strategic acquisitions. Listen to MJbulls episode 15 or go to visit vividgro.com to learn more.

 

Dan Humiston: [00:06:03] Now for companies raising capital how do they find companies like yours. You're not in the help wanted.  the classifieds I should say so where do companies identify groups like yours are they.

 

Joyce Cenali & Scott Williamson: [00:06:14] it's a small ish network in the Bay Area that it's growing. It's amazing how there's going to be separation between just about everybody that will change in time obviously as the market matures. But right now it's my window. Okay yeah. You know we're pretty present at various conferences we've tended and have speaking roles that knew what that meant for the last couple of years and you know we're very engaged with the CIA and California growers alliance and California distribution association myself. One of our other team members who have had worked and operations and candidates for some time that we attend a lot of the local San Francisco based regulatory meetings know we go to Sacramento quite frequently as well. So we try and be really in front of what's happening on the compliance track. So it is a small network in terms of the brand and cannabis industry focus. It's really the investors that deal flow and that sort of finding us definitely kind of on the more word of mouth that is big.

 

Dan Humiston: [00:07:19] That makes sense especially where you guys are it's like you're right you're right in the heart. But when a deal comes together and we're in the middle of a deal these guys want to raise capital. This company is raising capital to find the investors that want to be involved. Are you involved in that process in working through the details of the transaction.

 

Joyce Cenali & Scott Williamson: [00:07:41] Yes definitely. We have a diligence culture with preview and if we're really interested in it it looks like it's the right set of circumstances then we'll sort of run it through our I mean it's not a super fancy algorithm but we have a process. And basically in understanding what specific investors appetites are whether that be such an early stage strong growth opportunity or a specific sector within any of these sectors. We would then put that information in front of those investors.

 

Dan Humiston: [00:08:13] Well we've been speaking with Joyce and Scott from Big Rock partners and all their information all big rocks information in their web and their e-mail addresses will all be on the MJbulls Web site. And MJ bulls dot com guys thanks so much for explaining all this to me I know we took our time and went through a lot of a lot of details but it was I think this is going to be really helpful for our listeners. Thank you.

 

Joyce Cenali & Scott Williamson: [00:08:35] You're welcome and thank you so much.

 

Dan Humiston: [00:08:36] Thanks and good luck.

 

Dan Humiston: [00:08:39] Today show. And the following message are brought to you by agro science labs the largest most established cannabis testing network in Colorado to find out how you can get the most accurate and reliable test results. Visit agro science labs dot com

 

Dan Humiston: [00:08:58] Thanks for listening to the MJ bulls podcast. To learn more about today's guests or to become a guest. Visit our Web site at MJbulls dot com. Today's show is produced by buminit and media with original music composed by Jamie Humiston. I'm Dan Humiston and you've been listening to the MJbulls podcast.

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