The Benzinga Cannabis Capital Conference recently brought together industry leaders and investors, highlighting the crucial elements for success in the dynamic cannabis sector. Among the key takeaways, the importance of partnerships and robust cash flow emerged as paramount.
Michael Villapiano, Director at Altmore Capital, a firm providing senior secured term loans to cannabis companies, emphasized the necessity of collaboration in a panel discussion. He stated that companies cannot thrive in isolation within the cannabis industry, which presents unique challenges. “I think the partnerships, I think everyone kind of harped on it, and it’s so important in this industry like you can’t do this alone,” Villapiano shared during the interview. He underscored the importance of collaboration not only for operators but also for investors seeking to leverage collective expertise and resources. “If somebody was out there listening, they’re like, hey, I need to figure out who to partner with. How to improve myself through my friends,” he added.
While Villapiano’s background briefly included real estate investment, he emphasized that Altmore Capital prioritizes cash flow as the driving force behind its investment decisions. “Cash is king. That’s like the main thing,” Villapiano affirmed. Altmore Capital focuses on established companies beyond the start-up phase, specifically those generating over $10 million in revenue. Villapiano recognized the potential of real estate for cannabis operators, but Altmore prioritizes liquidity and cash flow management as crucial indicators of financial health. “For our preference, it’s more cash is king,” he said, explaining that Altmore’s lending approach centers on leveraging cash flow for long-term growth rather than asset-heavy strategies.
The Benzinga Cannabis Capital Conference provided a platform for industry players to connect, forge partnerships, and advance business deals. Villapiano expressed enthusiasm for the conference’s energy and its potential for industry progress. “Every year, I think Benzinga does the best. They get the most bang for your buck at these conferences. A lot of people are trying to make deals happen and move the industry forward,” he stated. He encouraged attendees to seize networking opportunities at the event. “I think Chicago will have some fun the next few days. If you’re in town, come hang out with everyone here. The vibe is right and a great one,” Villapiano added.
Altmore Capital’s participation in the conference reflects its ongoing commitment to supporting the cannabis industry through strategic investments. Their focus on companies with robust cash flow and a collaborative mindset underscores their belief in a sustainable and thriving cannabis ecosystem.