CANNAINVESTOR Magazine October / November 2016 - Page 50

Why Cannabis Challenges Represent a Significant

Opportunity for Investors

By Sara Batterby

As a founder raising money for a cannabis company, I spend a lot of time answering questions about some of the risks and challenges associated with the current federal status of our products. Cannabis is a Schedule One controlled substance and a recent examination by the DEA, which was expected by many to change that, concluded, somewhat mysteriously, that the classification would remain in place with some minor allowances for research.

Schedule One represents some significant challenges for cannabis companies and investors are understandably sensitive to these risks. At the outset of every conversation I have had on this topic, it has been clear to me that they are perceived to be a negative part of a cannabis investment, but during my 2 years as CEO of Hifi Farms, and armed with a strong background in analyzing investor risk in early stage companies, I have come to see these challenges as a meaningful opportunity for investors.