We Are Floris

Floris Fund I, LP (the “Fund”) seeks to be the capital placement fund that bridges the gap between investors looking to enter the cannabis market and those actively involved in the marketplace with capital needs. By combining the management and advisory team talents and experiences, we believe that our fund solution presents a prime opportunity to invest in the cannabis market with firms that are properly regulated and generate an optimal return on investment.

The Fund

Floris Funds is a California-based private equity fund focusing on partnering with owner-operators who want to create best-in-class professionally managed companies doing business in the regulated cannabis industry.

Industry

The cannabis industry is projected to triple by 2021, offering an exceptional investment opportunity.

Strategy

Invest in all sectors of the industry where best-in-class business practices are employed.

Team

A diversified collection of team members combining the necessary financial and industry knowledge.

Floris Funds

The opportunity to invest in a diversified and well-executed strategy with the right team.

The Industry

Citizens Agree

Through mid-2017, 29 states have approved cannabis for medical use, and that number is expected to grow in the years ahead with coming elections. Currently, over 59% of the U.S. population lives in a state that has legalized recreational or medicinal cannabis access, representing a large pool of potential cannabis patients and adult users. Voting citizens and states are sending a very clear message of acceptance for cannabis in all regions of the United States

New Technology

There’s been a long history of cannabis users dating back to the 1960s, and use continues to rise. There have been advancements in cultivation, including new strains, and recent advances in manufacturing have transformed the marketplace.
Today’s modern dispensaries offer many non-traditional products including a variety of edibles such as: chocolate bars, breath mints, topical solutions and concentrates in vaporizing technologies

Explosive Growth

The industry continues to have exponential growth and the opportunities to participate exist at many levels, in many forms and in various regions. The total U.S. industry is currently approaching $7 billion USD in retail sales, and as large states such as California come online over the next year, the estimates are that the industry will experience a tripling in anticipated size by 2021.

The Strategy

Given the new and high-growth elements of this rapidly evolving industry, the Manager anticipates typical investments will be made ranging from $1 million to $5 million in each portfolio company, based on the valuations prior to investments being made. Investments in a single portfolio company shall not exceed 25% of the Fund’s total capital commitments and it is anticipated that the fund will make a total of 12-18 investments over its projected five-year investment life. Given the diversity of the investments within the industry, it is anticipated that this will provide an attractive return on investment.

Investment Strategy

Because of the team knowledge, the Fund will invest in six primary areas within the cannabis industry including: cultivation, manufacturing, branding, retailing, real estate and other ancillary related businesses. This is an important distinction as the ancillary space, we believe, is becoming overcrowded and our multi-sector approach represents both a better diversification strategy and expected return on investment.

Exponential Growth

The industry continues to mature as more states come online both in the medical and adult use space. However, based on the growth projections this industry is still in the initial stages of expected total size. These projections show the industry exploding within the next five years given the current rates of voter approval, state acceptance and current growth trajectory.

Adaptability

Because the industry is still in the maturing stages, the teams that can adapt and be nimble will have the best advantages both in terms of deal flow and maintained return on investment. Our management depth provides Floris the ability to get into the weeds and understand the best routes and methods to tap into the industry including: diversified sectors, varied geography, budding companies, existing brands and/or innovative technologies.

Real Management and Controls

One of our key goals and defining metrics for who we select as portfolio companies will be their ability to conform to our evolving policies. We expect to and will impose standards by which all portfolio companies must adhere to as we move forward both with the initial investments and the expanded opportunity as the industry continues to evolve.

Cross Market Leveraging

Having a diversified portfolio of companies that we’re invested in is a multi-pronged approach to creating a successful fund. We not only seek the investment diversification intended to reduce risk, but we also anticipate that there will be brand leveraging intended to spur success. Having intrinsic vertical integration within the Fund’s portfolio partners, will provide an increased opportunity for success amongst all portfolio companies.

Deal Access

Because the industry in still in the growing stages, the teams that can adapt and be nimble may have the best advantages both in terms of deal flow and return on investment as early adopters including: 1) investing across the cannabis spectrum, 2) a willingness to deploy capital where returns are greatest by market, geography, or business type, 3) avoiding over crowed sectors in the ancillary segments where investments are often made because of inadequate deal flow or lack of inside industry knowledge and knowhow.

Market Knowledge

Floris understands the correct entry points to the market, which is critical in this emerging and evolving space. It is vital to understand all elements of the cannabis landscape when investing, including the safest, most profitable markets that offer the greatest return on total investment. In addition, to be a continued leader, developing standard operating procedures both at the fund and operating level is part of the Floris best-practices philosophy

Fund Objectives

Invest in US legal cannabis-related businesses that will maximize the Fund’s return on investment. The Fund provides funding, financing and/or capital to companies in the cannabis industry primarily in the form of equity investments. The firm may, selectively, provide debt financing as needed.

The Team

The Manager’s Board and Advisory Team are comprised of professionals with a strong track record that combines talents from the investment, legal and cannabis industries. This team’s strength lies in its unique ability to identify the right deals in the right regions, creating proprietary deal flow that will keep the fund on target for the intended investment strategy. Floris Capital Management, LLC, has decades of experience on both the financial side and the cannabis side, creating a true collaborative team to evaluate opportunities, structure deals and ultimately execute the strategy. There are three primary members within Floris Capital Management, LLC, collectively referred to as the “Board of Managers.” This Board is comprised of Skip Motsenbocker, Will Senn and Tom McNeely.

Skip Motsenbocker
President
Will Senn
Vice President
Tom McNeely
Managing Director

Learn More

Skip Motsenbocker

Skip has more than 25 years of professional experience in asset management, private equity and corporate finance and management. Prior to founding Floris, Skip led the marketing efforts as a managing partner and investment committee member with the RIA SignalPoint Asset Management. He was also on the management team for Potomac Fund Management and worked in private client advisement with Wachovia and Wells Fargo. He has extensive experience in business consulting, brand development and consumer products, providing both Fortune 500 and private companies financial guidance, reorganization strategies, efficiency improvements and team leadership building. He is a graduate of business and finance from San Diego State University.

Will Senn

Will is the founder of Urbn Leaf, a chain of branded retail cannabis dispensaries and co-founder of Floris. For more than a decade, he has successfully built eight early-stage medical cannabis businesses, including the largest medical cannabis dispensary in San Diego’s history. Will has navigated permits through the San Diego City CUP process and has interests in five licensed dispensaries in San Diego. His depth of knowledge in the cannabis industry is a key component to deal identification and metrics to evaluate potential investments for the fund. He has been an industry activist with critical founding roles in many industry associations and has attended San Diego State University.

Tom McNeely

Tom is a Chartered Financial Analyst (CFA) and a financial services executive well-versed in building capital markets advisory business units. Tom has years of experience working with private equity firms, investment banks and attorneys on transaction advisory services and valuation issues. He has executed merger-and-acquisition transactions assisting private companies with purchase and sale options after starting his career at the Chicago Board of Trade as a pit trader in 10-year-note financial futures and options. He holds a CFA designation from the CFA Institute in Charlottesville, Virginia, and has an MBA in finance from DePaul University in Chicago.

Advisory Team

In addition to our core Board, Floris Capital Management, LLC, has an Advisory Team comprised of key team members with a tremendous amount of financial, accounting, legal and industry knowledge. This team will not just assist in the sourcing and vetting of deals, but guide and evaluate which opportunities are best positioned to achieve the investment strategy. Currently our investment guidance comes from the following team:

Micah Anderson – Cultivator with decades of experience understanding the nuance of farming and grow facilities.

Mark Piesner, Esq. – Led the largest US cannabis manufacturing facility over the last decade.

Nathan Shaman, Esq. – Cannabis attorney who represents cannabis businesses in Southern California.

Joseph (Chip) Dow Sheppard III, Esq. – Activist and advocate for the legal cannabis industry.

Loni Woodley, CPA, ABV, CFF – Accountant with extensive experience in cannabis businesses taxation rules.

Disclosure

The information contained herein is private and confidential. This proprietary information is the exclusive property of Floris Capital Management, LLC (the “Manager”) and may not be distributed, published or otherwise duplicated without the written consent by a duly authorized representative of the Manager.

The information contained herein is for marketing purposes only and should not be relied upon to make investment decisions. Accredited investors considering an investment in Floris Fund I, LP, (the “Fund”), should make investment decisions about the Fund only after properly evaluating the circulation documents including: the Private Placement Memorandum, (the “PPM”), the Limited Partnership Agreement (the “LPA”), and the Subscription Agreement (the “SA”).

If you are interested in reviewing the PPM, LPA, and SA, for further evaluation, please contact the Manager directly in writing at the contact information provided herein.