Jacob Securities Inc.

Jacob Securities Inc.

November 10, 2015 08:00 ET

Jacob Securities Launches the Jacob Capital Management Cannabis Fund

TORONTO, ONTARIO--(Marketwired - Nov. 10, 2015) - Jacob Securities Inc. ("JSI") & Jacob Capital Management Inc. ("JCM") are proud to launch the Jacob Capital Management Cannabis Fund, (the "Fund"). The fund will target both private and public investments across the global cannabis value chain with a particular focus on opportunities in the United States and Canada. This first fund will have a maximum size of C$50,000,000.

The legitimate North American Cannabis sector was worth over $2.5 billion in 2014 and could reach over $40 billion by 2020 with the legalization of recreational use at the federal level. We are well on our way to such legalization in Canada in the next 2-3 years and expect the United States to follow suit after that.

However, due to the nature of the sector at this juncture, most high growth businesses in the next two years will either generate poor investment returns or be out of business. Herein lies the risk, but also an opportunity for a unique investment approach to generate returns that outpace broader financial benchmarks.

"Our firm has successfully raised billions of dollars in its relatively short history by specializing in early stage sectors that are highly regulated such as renewable power, energy, and infrastructure around the world. In these sectors, we have not only raised capital and provided advisory services to clients, but have also helped to build companies and therefore shaped the direction of these industries," stated Sasha Jacob, President and CEO of Jacob Securities Inc. "The Cannabis sector is no different and our unique approach has already allowed us to secure over C$90 million in equity and debt capital since Q1/2014 for North American Cannabis businesses. Working in concert with leaders in this sector such as Cheryl Shuman and George Smitherman, we intend to secure the right type of opportunities and resources for investors in the Jacob Capital Management Cannabis Fund."

The Fund will build on Jacob Securities' existing expertise in the sector to create highly structured investment opportunities that considerably decrease investor risk, while still achieving attractive returns. In most cases the Fund will not be a passive investor.

The Fund and JCM will take advantage of JSI's strong deal flow as well the technical and regulatory relationships it has established in this fast growing but nascent sector.

Launch advisors to the Jacob Capital Management Cannabis Fund:

Cheryl Shuman

Known as the "First Lady of Marijuana," Cheryl Shuman is considered to be the most powerful woman in the cannabis industry appearing regularly on CNBC, CNN, Fox Business News and has graced the covers of Adweek, The New York Times Magazine, London Times Magazine and featured in Forbes, Elle, Vanity Fair, Marie Claire and many more. As the C.E.O. of Cheryl Shuman Inc., the leading business development firm in the U.S. cannabis industry, Shuman has been involved in the building of over 1,700 cannabis related businesses. As the founder of the Beverly Hills Cannabis Club, Miss Shuman has capitalized on her relationships with investors, celebrities and media. Miss Shuman was hand selected as a senior advisor to the Fund.

George Smitherman

Mr. Smitherman is the former deputy premier of Ontario representing the riding of Toronto Centre as an MPP from 1999 to 2010, and served as Minister of Energy and Infrastructure and Minister of Health and Long-Term Care. Mr. Smitherman is now actively involved in the medical marijuana sector as an investor and advisor. He has also been specifically chosen as senior advisor to the Fund.

About Jacob Securities Inc.

Jacob Securities Inc. is an independent, full-service investment bank providing underwriting and financial advisory services to companies in the power, infrastructure, technology, energy and Cannabis sectors. The firm, which is headquartered in Toronto, primarily services small and mid-cap issuers in North America and around the world.

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