Why Partnerships Are Essential In The Cannabis Industry: 'You Can't Do This Alone' Says Expert

At the recent Benzinga Cannabis Capital Conference, Michael Villapiano, director at Altmore Capital, emphasized the importance of partnerships in the evolving cannabis industry.

As part of a panel discussion at the event, Villapiano highlighted that collaboration between companies is critical for navigating the sector’s unique challenges, particularly for those seeking financial stability.

"I think the partnerships, I think everyone kind of harped on it, and it’s so important in this industry like you can’t do this alone," Villapiano said during his interview. He noted that This focus on collaboration applies not only to operators but also to investors looking for ways to leverage collective expertise and resources. "If somebody was out there listening, they’re like, hey, I need to figure out who to partner with. How to improve myself through my friends," he added.

Cash Flow Remains a Top Priority

Though Villapiano's background briefly included real estate investment, he emphasized that cash flow is the primary concern for Altmore Capital, which provides senior secured term loans to cannabis companies. "Cash is king. That’s like the main thing," Villapiano stated. Altmore Capital’s strategy is focused on companies beyond the start-up phase, specifically those generating more than $10 million in revenue.

Villapiano noted that while real estate offers unique opportunities for cannabis operators, Altmore prioritizes liquidity and cash flow management as critical indicators of financial health. "For our preference, it’s more cash is king," he said, explaining that Altmore’s lending approach centers on leveraging cash flow for long-term growth rather than asset-heavy strategies.

Excitement Around the Conference and Industry

Villapiano expressed enthusiasm about the ongoing conference and its energy, describing it as an important platform for industry players to connect and advance cannabis business deals. "Every year, I think Benzinga does the best. They get the most bang for your buck at these conferences. A lot of people are trying to make deals happen and move the industry forward," he said.

Looking ahead, Villapiano encouraged attendees to take advantage of the networking opportunities at the conference. "I think Chicago will have some fun the next few days. If you’re in town, come hang out with everyone here. The vibe is right and a great one," he added.

Altmore Capital's presence at the event reflects the company’s ongoing commitment to supporting the cannabis industry through strategic investments, particularly for companies with strong cash flow and collaborative partnerships.

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Photo: Courtesy of geralt, lindsayfox Pixabay