CANNAINVESTOR Magazine U.S. Publicly Traded January 2019 | Page 20

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Editor In Chief

D. A. Wallace

[email protected]

(888) 575-1254, Ext. 1

Contributing Writers

Ryan Hum

Viridian Capital

Louis Kyron, CPA, CGA

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CANNAINVESTOR

Magazine

EDITOR'S NOTE

D. A. Wallace, Editor In Chief

Greetings and a warm welcome to our 28th issue of the CANNAINVESTOR Magazine! We couldn't be more excited to bring our magazine to cannabis investors, analysts, financial media and cannabis executives.

How do you evaluate a cannabis company? Due to the fact the legal cannabis industry is a fairly new industry, you can't solely use traditional metrics, such as revenue and earnings growth to evaluate a cannabis company. If that was the case 99% of cannabis companies would not past the test. The first metric I look at is cash. A company's cash balance can be found on their Balance Sheet, which is listed on their quarterly or annual financial statements. Without cash a company can't scale or grow their business. Without cash a company is not serious about executing their business strategy. Most likely the management team are just planning on getting rich by selling you their founders stock. Please visit Page 236 to see some short term companies with significant cash. Another metric I look at is Outstanding Shares. If a company has too many shares outstanding that's a red flag. That means the company is issuing shares to fund operations, administrative expenses, and, salaries. It also means the company is not producing enough revenue to cover those expenses. In other words, the company is living off investors. Finally, I look at a companies management team experience. Does the management team have any experience successfully developing and growing a company? If a cannabis company doesn't possess these three characteristics - RUN! Thank you for letting us keep you informed and assist you in your research of this new and emerging market. We appreciate your support and are so happy to have you as a reader of the CANNAINVESTOR Magazine!

CannaInvestor Magazine assumes no responsibility for any claims or representations contained in the magazine or any advertisement. CannaInvestor Magazine considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. All materials contained are for educational purposes only. Articles are general information and not a recommendation to act. The author or CannaInvestor Magazine or associated individuals and companies will not be held responsible or be liable for action taken by any reader of our article. Past performance is not a reliable indicator of future performance. Cannabis Stocks involve a higher level of risk and may not be suitable for all investors, losses can exceed deposits. Please seek independent investment advice before entering into any financial transaction. It should always be assumed that writers may have investment positions in companies that appear in the magazine. Some content is paid for by companies and other content cannot be paid for and must meet certain key metrics and criteria. Paid content is only allowed to market the company, products, services, and management team and not it's stock..