It is well known that a career is a lifelong journey that can take many turns. Today we're taking a look at an inspiring story of a pharmacist who ended up managing a multi-billion fund focused on cannabis and healthcare.
Jason Wild, founder, president and CIO of JW Asset Management and TerrAscend's (CSE:TER) (OTCQX:TRSSF) executive chairman, will deliver the keynote speech at the upcoming Benzinga Cannabis Capital Conference to be held on April 20 and April 21 at the Fontainebleau Miami Beach Hotel.
From Pharma To Cannabis
Originally a pharmacist, Wild's journey led him to become an investor with a firm that oversees $2 billion through a mix of investments in pharmaceuticals and cannabis producers.
However, it wasn't always that way. Wild actually started out with $80,000, which he used to launch JW Asset Management, LLC fund in 1998. Nearly two decades later, his interest shifted to medical cannabis companies in Canada.
As a graduate of the Arnold and Marie Schwartz College of Pharmacy, Wild primarily focused on pharmaceutical investments.
At the Benzinga Cannabis Capital Conference in New York this past October, Wild told Tim Seymour, portfolio manager at Amplify Seymour Cannabis ETF CNBS and senior advisor at JW Asset Management, that he was much more interested in the stock market and "investing in pharmaceutical stocks as opposed to filling prescriptions."
Early success came from assembling Arbor Pharmaceuticals in 2010 - where he was chairman until November 2021 after selling it to KKR (NYSE:KKR) in 2014 for a sizable profit, which he then invested in major Canadian cannabis companies. Wild has since become one of the first U.S. institutional investors in legal cannabis companies.
During his trip to Canada, around 2015 or 2016, he heard about CBD for the first time. "I was really excited to hear about all the true medical uses for cannabis," Wild said.
After initial success in Canada, followed by a "large investment" into TerrAscend toward the end of 2017, when "we pivoted the fun into the U.S," he explained.
In November of the same year, the company secured a $52.5 million investment from Canopy Growth Corporation (NASDAQ:CGC) (TSX:WEED), Canopy Rivers - now RIV Capital (OTC:CNPOF) - and JW Asset Management.
TerrAscend, which grew from a cannabis start-up to a billion-dollar company in less than four years, expanded south of the border in early 2019, establishing a presence in the U.S. through the $118.4-million acquisition of California-based retailer Apothecarium.
"The U.S. is a much more vibrant market," Wild said. "We can do the real business. Canada is very tough."
The Vibrant U.S. Market
On Thursday, TerrAscend wrapped up its long-negotiated $545 million acquisition of Gage Cannabis expanding its footprint in California, Michigan, Maryland, New Jersey, Pennsylvania and Canada. The combined company's retail network is now expected to reach 40 stores by the end of 2022.
The company also formed a partnership with Berner's Cookies in New Jersey last year where it will exclusively provide the brand's products. The deal came about through Gage, the exclusive Cookies processor in Michigan.
Wild said the "combination of TerrAscend and Gage has created one of the most compelling and differentiated operators in the North American cannabis industry."
TerrAscend also had its fair share of the cannabis industry's unexpected growth.
As the fifth anniversary of going public approaches, TerrAscend's stock is outperforming some of the most popular in the world, such as Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX), Meta (NASDAQ:FB) (previously Facebook) and Amazon (NASDAQ:AMZN). It's up from CA$1.07 ($0.84) per share to CA$6.12 for a return of 471.96%.
Still, Wild said he expects a bit of a slowdown in business growth, referring to third-quarter previews that suggested a slump in the marketplace following a surge in cannabis sales in the wake of the COVID pandemic.
The company's net sales of $49.1 million for the period, which were down by 16% from the previous quarter, and wider loss, confirmed the assumptions.
Nevertheless, "the normalized growth that we're all going to experience is still pretty awesome," Wild said.
TerrAscend is scheduled to release fourth-quarter financial highlights this week, and shows no signs of slowing down.
The recent appointment of Kara DioGuardi - songwriter, producer, record exec, Broadway actress, etc. to its board of directors is expected to be beneficial as "we integrate our business with Gage Cannabis and focus on increasing brand equity across our core markets," Wild said earlier this month.
Collaboration With NBA All-Star Chris Webber
In the meantime, celebrity backing and endorsements are nothing new for Wild especially since he teamed up with Chris Webber, five-time NBA All-Star and founder of Webber Wellness, last year to launch a $100 million private equity cannabis fund.
Their goal was to invest in "underrepresented entrepreneurs pursuing careers in the cannabis sector."
The Webber Wild Impact Fund is focused on minority entrepreneurs in the cannabis industry.
"The foundation is geared towards helping with records expungement and job training, Wild explained, adding that there are "a lot of investors that want to invest in the fund because they think we're going to make money."
The Benzinga Cannabis Capital Conference
The event will feature traditional keynotes, panel discussions, fireside chats, networking, company presentations as well as investor and celebrity appearances.
"We've seen cannabis businesses raise tens of millions of dollars at our events, and this year's meeting will be even larger, with a record level of investment capital and top-notch operators," said Jason Raznick, Benzinga's founder and CEO.
Check out the full lineup here.
Beringer Capital, a private equity firm focused on the media, marketing services and technology sectors, acquired a majority stake in Benzinga in October in a deal valued at $300 million.
Photo: Courtesy of Benzinga
