Bespoke Financial Archives - Green Market Report

StaffJanuary 18, 2023
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The Daily Hit is a recap of the top financial news stories for January 18, 2023.

On the Site

New York’s First Cannabis Retailer Sued over Website Accessibility

The nonprofit Housing Works, which launched recreational cannabis sales in New York City last month, is now facing a legal fight over its website, in a suit filed by a blind woman, claiming it’s in violation of the Americans with Disabilities Act. Read more here.

Bespoke Financial Sues ‘In Da Cut’ For Not Paying Its Debt

Cannabis lender Bespoke Financial is suing California-based In Da Cut LLC’s CEO, Drayten Howell, and DOES 1-10 for not paying back the money that was borrowed. According to the court complaint filed on Jan. 11, Bespoke loaned money to In Da Cut in February 2022 so that In Da Cut could pay third-party vendors for goods and services that had been purchased. Read more here.

Michigan Cannabis Sales Hit New Record

Michigan had a banner year in 2022, ending with $221.7 million in sales for the month of December alone and a full-year total of $2.3 billion, a new record for the state’s marijuana industry. That annual sales figure is a 28% increase from 2021. Read more here.

Cannabis ETF Investors: Bad Timers, but Committed

Cannabis ETF investors are a loyal bunch, but not so great at market timing. Just look at one of the more popular cannabis ETFs, the AdvisorShares Pure U.S. Cannabis ETF managed by Dan Ahrens, where investors seem to buy high and sell low. Read more here.

In Other News

Body and Mind Inc.

Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ), a multistate operations-focused cannabis company, posted revenue for fiscal year 2022, ended July 31, 2022, of $31.6 million, a 17.6% increase over FY 2021 revenue of $26.9 million. Read more here.

Nass Valley Gardens

Nass Valley Gardens Inc., a Nevada registered C-Corp and a wholly owned subsidiary of Nass Valley Gateway Ltd., (CSE: NVG) (OTC: NSVGF)(FSE: 3NVN), signed a definite agreement to purchase 100% of Super Scientific Laboratories LLC, a manufacturer of products focused on CBD, cannabidiols, vapes, gummies, soaps, lotions, and other consumer products. Read more here.


Debra BorchardtJuly 13, 2022
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LeafLink is diving deeper into the world of payments. It’s an area that has bedeviled the industry as the large banks and credit card companies won’t work with the cannabis industry. LeafLink is mostly known for its wholesale cannabis platform, but now its expanded its payments suite to include Direct Payments for customers in six states. LeafLink’s Direct Payments solution is now in Colorado, California, Arizona, Massachusetts, Ohio, and Nevada.

LeafLink also noted that in addition to its Direct Payments offering, it is also launching a new digital onboarding journey for all users, which verifies and approves the company for LeafLink Payments in real-time.

“Between Direct and Flexible Payments solutions, LeafLink offers a range of holistic digital payments and purchase financing services that simplifies cannabis business operations,” said Ryan G. Smith, CEO and Co-Founder of LeafLink. “Our Direct Payments service gives cannabis operators a seamless, simple and intuitive way to manage digital transactions. The LeafLink team is excited to offer such a necessary solution to our customers across six states and hopes to help more cannabis businesses realize their growth goals in the future.”

LeafLink’ said its Direct Payments solution addresses operational pain points experienced by buyers and sellers who rely on cash transactions, allowing them to seamlessly send and receive compliant ACH payments. For buyers, Direct Payments enable businesses to effectively manage cash flow by eliminating the uncertainty of mailing and clearing checks. Sellers, on the other hand, can leverage Direct Payments to digitize manual cash collections, lower transaction costs, and expedite time-to-cash timelines. Complimentary for all LeafLink customers until next year, the service allows brands and retailers to save time, secure their payments, and centralize their transaction process within the LeafLink platform.

“LeafLink is in a unique position because we are solving for an industry that is very under-served. Whatever side of the equation you’re on in the B2B cannabis space, our goal is to fast-track your growth and efficiently give you the funds that you need. Part of being able to do that is offering a seamless onboarding experience for our customers,” said Harish Mukhami, Senior Vice President of Product for LeafLink. “I expect this will drastically shift the way cannabis operators view digital payments, which haven’t been widely adopted by the industry due to the cumbersome and manual nature of getting started. We’ve addressed that gap and are reducing that friction entirely so that customers can start transacting almost immediately.”

According to Crunchbase, LeafLink has raised a total of $379M in funding over 7 rounds. Their latest funding was raised on Jul 21, 2021 from a Series C round. LeafLink has a post-money valuation in the range of $1B to $10B as of Jul 21, 2021, according to PrivCo. LeafLink has stated that it is backed by leading venture capital firms and strategic investors, including Founders Fund, Thrive Capital, Nosara Capital, and Lerer Hippeau, LeafLink says it has raised more than $131 million of equity to date as well as a $250 million credit facility to provide liquidity to the cannabis supply chain.

Bespoke Financial

Bespoke Financial also recently announced an integrated partnership with BLAZE Solutions, a leading cannabis technology company. The partnership establishes an embedded lending product providing cannabis retailers access to Bespoke’s financing at the click of a button within BLAZE’s Dispensary POS software. The move would allow dispensaries easy access to funds for vendor payments, the financing program will boost retailers’ ability to make timely payments that trickle up the supply chain, operate at a larger scale to increase profitability, and carry an assortment of brands to keep a competitive edge.

BLAZE said its clients can opt-in through the POS to see qualifying options for  Bespoke’s dispensary financing, which allows access to 60-day repayment terms on all vendor payments. Qualifying retailers can finance purchase orders to vendors seamlessly in the platform similar to a B2B  buy now, pay later option. The ability to pay vendors directly from within the BLAZE platform via Bespoke’s financing will also minimize dispensaries’ reliance on cash transactions. Dispensary financing is currently in beta testing with a select group of operators and a broader launch coming later this year.

Bespoke’s team of fintech and cannabis experts are providing working capital that helps businesses increase purchasing power and accelerate profitability in a fast-growing industry,” said BLAZE CEO, Chris Violas. “ At this momentous time for cannabis technology, BLAZE is proud to offer the dispensary financing program and build advanced digital solutions that strengthen the cannabis supply chain.”

BLAZE’s clients can now opt-in through the POS to see qualifying options for  Bespoke’s dispensary financing, which allows access to 60-day repayment terms on all vendor payments. Qualifying retailers can finance purchase orders to vendors seamlessly in the platform similar to a B2B  buy now, pay later option. The ability to pay vendors directly from within the BLAZE platform via Bespoke’s financing will also minimize dispensaries’ reliance on cash transactions. Dispensary financing is currently in beta testing with a select group of operators and a broader launch coming later this year.

“BLAZE is the most prominently utilized POS in California, serving approximately a quarter of licensed cannabis retailers. Through this partnership, the new dispensary financing program expands our footprint into California and Massachusetts, two of the most established cannabis retail markets on each coast, respectively,” said George Mancheril, Founder and CEO of Bespoke Financial. “This new forward-thinking lending product combines accessible, scalable financing with an industry-leading POS platform.”


Debra BorchardtOctober 23, 2019
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Casa Verde, a venture firm that counts Snoop Dogg as a partner, led a $7 million financing round for cannabis short-term lender Bespoke Financial.  Bespoke Financial was launched in 2018 by co-founders Benjamin Dusastre, Pablo Borquez-Schwarzbeck and George Mancheril.

“While the US legal cannabis market is forecasted to grow over 20% annually, reaching $23B by 2022, the industry’s true growth potential is limited by long cash flow cycles throughout the supply chain and a lack of scalable and efficient capital sources,” says Bespoke Financial Co-Founder and CEO, George Mancheril. “Our approach will dramatically improve cash flow cycles across the supply chain and provide scalable working capital to fuel our clients’ growth.”

Borquez-Schwarzbeck and Dusastre are also the co-founders of ProducePay, a fintech platform focused on produce farmers across North and South America. Founded in 2014, ProducePay has financed $2+ billion in perishable commodities to date, operates in 13 countries, processes thousands of transactions monthly and has raised over $200M in funding from some of the largest and most prominent investors in the world.

Building off ProducePay’s successful business model to offer financing to a similarly underbanked industry, Bespoke provides unique financing options for the cannabis industry by incorporating ProducePay’s proven underwriting model, risk management controls and technological expertise in building a successful fintech platform.

In addition to Casa Verde, Greenhouse Capital Partners, and Outbound Ventures among others will be used to both enhance Bespoke’s existing online platform where borrowers can request funds on a real-time basis and to expand Bespoke’s team and marketing efforts. While currently focused on the California cannabis market, the company has plans to quickly expand into other legal US jurisdictions.

“Bespoke is filling a critical funding gap for US cannabis businesses that are rapidly scaling and need short-term working capital solutions. With the recent softening of the public markets, private financing is becoming more expensive. As such, Bespoke has created an efficient alternative for cannabis companies to access liquidity while managing their dilution,” says Karan Wadhera, Managing Partner of Casa Verde. “Given the Bespoke team’s previous success in building the leading agtech platform, coupled with their depth of fintech expertise, we are confident in leadership’s ability to execute.”

 


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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