Fundamentals Matter

BlackShire was formed with one simple purpose: to provide the highest quality return on capital in a fundamentals-based investment company focused on cannabis.

A Message From the CEO

At this moment, around the world, the global cannabis sector is at the beginning of a multi-decade bull market that cannot be ignored.

At BlackShire, we believe that the market will soon be worth trillions of dollars. Experience also leads us to expect that extreme growth will attract excess capital, drive speculation and generate volatility – which will create both opportunity and hazard.

It’s a pattern we’ve seen before, most recently in the technology boom. Speculation leads to overvaluations and sets the stage for tremendous run-ups and spectacular collapses. As in every market, transitory winners and losers emerge, but truly innovative companies with proven management and sound growth strategies can endure to become industry leaders.

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Investors looking to profit during the coming bull run have several options, each with its own set of risks and rewards. Investors can buy individual stocks, which delimits risk in a way, but in a fluid market it ultimately forces an investor to pick individual winners and losers from thousands of choices. Index or Passive Investing is an option that compels investors to acquire a mixed basket of stocks, many of which they may not want, as way to mitigate risk through diversification. Private Equity can provide investors with remarkable opportunities for growth and dependable returns, but the barrier to entry is exceptionally high and the assets can be illiquid and hard to manage.

BlackShire offers investors a fourth option: Quality Investing. It’s an approach that combines the best features of Public Equity and Private Equity and, we believe, provides the highest quality return on capital. Our Quality Investing strategy is guided by disciplined fundamental analysis. We seek to identify high-potential companies at the earliest stage, subject their structure, principles and assumptions to thorough analysis, and then make the highest quality choice for our investments.

Companies – public or private – that meet our standards come from all the relevant sectors: Laboratory and Research, Cultivation and Processing, Consumer Products and Brands, and Distribution and Dispensary. They all have strong business models and solid leadership teams. Through active management, they offer high potential to deliver both sustainable free cash flow and the dependable earnings needed to build long-term wealth and an attractive return on equity.

Moves made today will take time – measured in years, not months – to play out. But sustainable, high-yield growth is achieved by being a prudent but early mover when it comes to making capital investments. The ability to look ahead, to identify quality and to act today to realize long-term returns is BlackShire’s greatest strength.

Photo of BlackShire CEO Kevin Reed Photo of BlackShire CEO Kevin Reed Our team of capital markets experts approaches cannabis investments from all angles to stay ahead of the industry’s development curve. This mentality distinguishes us from the herd, and affords us the conviction to move forward with fully formed strategies.”
– Kevin Reed, CEO

Real Value.
Real Opportunity

World map showing potential growth areas for BlackShire
Legal or moving towards legalization Illegal

Canada and U.S. Legal Cannabis Market Forecast 1,2

$110 billion
2029
$5.0 billion
2015
  1. Ackrell Capital, U.S. Cannabis Investment Report 2016
  2. Deloitte, Recreational Marijuana Insight and Opportunities 2016
Estimated Future
Global Market Value

$500 billion

Legal Cannabis vs. Other Stimulants and Substances (USD)1

Pain Killers

  • Medical Use
  • 40% Adult Penetration
  • $50–200 Monthly Spend

Alcohol

  • Recreational Use
  • 50% Adult Penetration
  • $45–200 Monthly Spend

Tobacco

  • Recreational Use
  • 17% Adult Penetration
  • $40–80 Monthly Spend

Anti-depressants

  • Medical Use
  • 25% Adult Penetration
  • $50–100 Monthly Spend

Coffee

  • Recreational Use
  • 50% Adult Penetration
  • $80–100 Monthly Spend

Cannabis

  • Recreational and Medical Use
  • 20% Adult Penetration
  • $50–500 Monthly Spend

Estimated U.S. Market Size (billions USD)1

$300 billion
Pain Killers
$200 billion
Alcohol
$100 billion
Cannabis (2029)
$100 billion
Tobacco
$80 billion
Anti-Depressants
$35 billion
Coffee
  1. Ackrell Capital, U.S. Cannabis Investment Report 2016
A Market You
Can’t Ignore

Investment Approach

BlackShire uses fundamental analysis and active management to find the emerging leaders in high growth categories. We allocate capital principally to private companies, diversifying across all subsectors.

With selective partners, we will:

  • Identify management and talent with the capability to become category leaders
  • Oversee, at the board level, corporate strategy, budgeting, capital structure, management positions, compensation and governance
  • Perform extensive due diligence and scrutiny of management, models, assumptions and facts
  • Actively allocate capital based on our investment mandate and industry fundamentals
  • Invest capital alongside management to align interests and create long-term wealth
  • Diversify across subsectors, geographies and markets to maximize return and minimize risk

Asset Allocation

When confronted with volatility, investors can rely on the security of diversified assets. And while legalized cannabis remains in its infancy, it already enjoys deep ties to a variety of sectors. From medical research and pharmaceuticals to cultivation and retail, real-world value provides the foundation for the immense potential of the cannabis opportunity. By acquiring and investing in global cannabis leaders across all sectors, BlackShire offsets risk and strives for sustainable success.

Contact Us

1008 – 150 York Street
Toronto, Ontario  M5H  3S5

1 416 583 2501

For shareholder questions and requests, including address changes, transfers, and replacement of certificates, please contact our Transfer Agent and Registrar, TSX Trust Company.

TSX Trust Company Investor Services

Mail: 100 Adelaide Street West, Suite 301, Toronto, ON M5H 4H1

Phone: 1 (866) 393-4891, ext. 205

Fax: 1 (416) 361-0470; Attn: Investor Services