Silver Spike Capital, a cannabis investment firm, is using creative financial structures to help solve a big problem for the industry: a lack of cash.
Due to the federal prohibition on marijuana, cannabis companies can’t just take out bank loans or issue bonds. That’s given rise to creative financing: Many lenders in the cannabis space, for example, specialize in loans secured by real estate.
But Silver Spike Chief Executive Officer Scott Gordon, with more than 30 years in asset management and investing under his belt, has taken a different approach. Silver Spike has so far spawned three special purpose acquisition companies — one of which took cannabis technology platform Weedmaps public in 2021.
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