As the cannabis industry grows, investors refine their approach to evaluating companies, focusing on financial performance and other critical aspects of business operations.

Mackenzie Peterson, vice president of marketing at AdvisorShares, shared her perspective on what today's cannabis investors are prioritizing ahead of her speaking appearance at the Benzinga Cannabis Capital Conference.

Financial Performance and State Markets

When asked what qualities investors seek in cannabis companies, Peterson noted that strong financials remain essential. "Strong financial performance, including revenue growth and profitability, remains paramount," she stated. However, she highlighted that investors are increasingly paying attention to where companies operate, particularly in states where cannabis regulations are changing.

Peterson pointed to Florida as a state drawing considerable interest. With adult-use cannabis up for a vote in November, Florida could soon become one of the largest markets in the country.

"Florida is one that has been a focus for many investors this year since it's up for a vote on adult-use this November and could become one of the largest markets in the United States," Peterson explained. This potential change makes Florida a prime location for cannabis companies looking to expand their presence.

Brand Recognition and Customer Loyalty

Beyond financials and market presence, Peterson highlighted the importance of brand strength in a competitive industry.

Cannabis companies that can build recognizable brands and establish strong connections with consumers are standing out to investors. "Companies with distinctive, well-known brands that can differentiate themselves in a competitive market are gaining attention," she said.

In states where cannabis is legal, establishing a loyal customer base is also a valuable asset. "In legal cannabis states, businesses that can build a loyal customer base and establish a strong retail presence are especially valued," Peterson added.

These elements are becoming increasingly important as more companies enter the market and competition intensifies.

What’s Next?

As the cannabis industry faces ongoing regulatory changes and market shifts, companies that combine financial performance with operational strength in critical markets and effective branding are catching the attention of investors. Peterson's insights examine how these elements shape investment decisions in today's cannabis market.

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