From time to time, Bond Street offers Accredited Investors a rare opportunity to participate in a private placement in a public company whereby the investor has the opportunity to buy publicly traded shares, at a significant discount, or lend the company funds via convertible debentures and obtain warrants which can be exercised for benefits in the future. These companies are raising additional expansion for expansion or acquisitions.
Bond Street has participated in a number of such PIPES (private placement in a public entity) over the past few years including the one and only private placement of shares in Facebook (prior to the IPO), 4 Canadian company PIPES in the booming cannabis sector and the only publicly traded company in the world in the hugely expanding “vaping” business.
Bond Street chooses its few offerings very carefully, conducts in-depth due diligence, while looking for a unique “story” and excellent managers who has both the vision and the ability to execute their business’s expansion plans.
When an exceptional opportunity presents itself, Bond Street Mercantile offers Accredited Investors the opportunity to participate in private placements of public companies. In most case the companies are raising $10M or less for expansion capital. The Private Placement offers usually includes the purchase of stock at a discount to the current stock trading price, as well as warrants for future purchases at a set price. Often there are loan and conversion opportunities as well. These can often lead to significant profit opportunities.
From time to time, when an exceptional opportunity presents itself, we will raise funds for a company in the form of Private Equity. We do NOT consider startup companies, but rather look for companies that are unique in the marketplace and are looking for expansion capital. We look for special niche opportunities in companies that are planning to monetize via IPO’s, JV’s or other mechanisms within a short period of time. We want our investors to be in pocket within a few months while maintaining significant upside opportunities. We do not consider companies in the technology or medical fields.
The Cannabis Opportunity
Medical cannabis has been legal in Canada for the past 6 years as it is in much of the western world. As of the summer of 2018 recreational cannabis will be legalized as well. This has led to many new huge financial opportunities in many areas of the burgeoning cannabis industry including investments in R&D, technology companies, producers, product manufacturers and financiers for businesses in Canada, the US (where cannabis is legal in 27 states representing two thirds of the American population), and countries in Europe, South America and Africa.
Canada has become the international centre of financing for the cannabis industry which is expected to exceed more than $56B in size just in the medical side of the industry by 2025. The Canadian recreational cannabis market is expected to exceed $20B! Big liquor and tobacco companies have just begun to make their first major investment in the industry, while Big Pharma is currently investing from a distance. But over the next ten years this will be one of the most significant growth areas for investors worldwide.
Over the past 3 years, we at Bond Street have gained much knowledge of this industry and thus far we have participated in 10 Private Placements for public companies in the cannabis field. We have also participated in three Private Equity deals thus far and numerous debt financings for licensed producers in Canada. We have built a strong base on contacts in Israel and the US cannabis industries as well.
We will continue for search for unique and rare opportunities for Accredited Investors to participate in this very rare, likely once- in-a-lifetime opportunity of a new and huge industry.