It's now legal to purchase recreational marijuana in Colorado. And while the legal weed market is young, it's going to get a serious boost from executives of High Times magazine. The magazine announced a new private equity fund to invest in cannabis-related businesses, the Denver Post is reporting. The "HT Growth Fund" hopes to raise $100 million over the next two years, the Post reported.
Led by Michael Kennedy, general counsel and director for High Times, and Michael Safir, High Times' business manager, the fund hopes to make investments in companies from $2 million to $5 million. This is obviously good news for businesses affiliated with marijuana, as it can be tougher to get small business loans or even have bank accounts.
"We have a deep and detailed knowledge of the needs and wants of the cannabis industry," the firm writes on its website. "The team at the HTG Fund have a combined 70 years of experience related to all things cannabis, which allows us to use our historical knowledge to forsee the future."
As Walt Hickey previously reported:
The Colorado marijuana industry—which is responsible for thousands of new jobs, and is projected to raise $130 million in taxes for the state next year alone—has accomplished something not seen in this nation since the passage of the 21st Amendment.
"What we are looking to do is provide capital and credit to companies that are established and have grown and reached their potential as much as they can without access to traditional capital markets," Michael Safir told the Denver Post. Check out the Post's full report.