MAZAKALI

A cannabis-focused fintech marketplace based in San Francisco, MAZAKALI offers investment opportunities in the high growth cannabis industry. Supported by a broker/dealer and acting as a Registered Investment Adviser, the company has been supporting cannabis businesses in raising capital since 2016.

MAZAKALI was founded to counteract the negative consequences of business practices by making investments in sustainable cannabis. By shepherding capital in a responsible and ethical manner, MAZAKALI and its clients envision a world where capital investment will play a significant role Beyond Impact.

The company’s financial services leverage deep relationships, rigorous analytics and reliable research focused on uncovering investment opportunities in the high growth cannabis sector. The company features a deep bench of educated, experienced and licensed professionals to support clients with their capital and investment needs.

Investor Services

  • Online Investment Marketplace: Investors gain access to a pipeline of vetted investment opportunities; diversified across sectors and geography. In addition to direct investments, MAZAKALI offers managed funds and custom portfolios.
  • Custom Portfolios: Investors seeking to place capital in excess of $1MM can take advantage of separately managed accounts designed and managed by licensed investment advisors. Custom portfolios offer several advantages over collective funds, including personalization, reduced expenses and tax benefits.
  • Institutional Investor Services: MAZAKALI introduced the first Outsourced Cannabis Investment Officer (OCIO) service in 2019, providing its portfolio management expertise to those institutions with capital and interest seeking knowledge and access.

Issuer Services

Every successful capital raise begins with proper preparation. Since its inception, MAZAKALI has specialized in supporting cannabis-related businesses by helping them prepare to raise capital. Cannabis firms that collaborate with MAZAKALI gain access to insight acquired through the hands-on experience of MAZAKALI’s management team.

By providing comprehensive services throughout the entire fundraising process, MAZAKALI helps businesses save time and show well to potential investors at every stage. The company’s services include:

  • Preparation stage: Initial consultation, business review, structural analysis, strategic planning, expansion agenda
  • Structure offering stage: Capital advisory, capital cadence, deal structure, financial instrument selection, initial raise terms
  • Modeling stage: Pro Forma financials, income statement, balance sheet, cash flow statement, assumption review, business valuation
  • Pitch preparation stage: Pitch deck, investment deck, pitch practice, Q&A practice, pitch video
  • Offer launch stage: Digital platform listing, pitch video, term sheet, Pro Forma model, financials, cap table, subscription docs, automated workflow, offer marketing

Education – GreenPapers®

The company believes in ‘Authority Through Knowledge’. To help educate the public about the cannabis markets, MAZAKALI uses GreenPapers® to share deep trends and insights that matter to investors and operators alike. GreenPapers® archives span from 2016 to the present, with the most recent insight report focusing on major cannabis trends in 2021.

Titled Cannabis 2021: Five Things to Watch, the report underlines that 2021 is poised to be a pivotal year for the cannabis sector amid growing political support, legalization in 70 percent of U.S. states, increased public focus and local governmental interest in gaining tax revenue from the market (https://nnw.fm/UbZ6Q). All of these factors and more are likely to make cannabis the best performing asset class of the decade, the report forecasts.

The report also lists the five major trends expected in 2021:

  • Rise of the cannabis beverage
  • Biosynthesis
  • Accelerated state and local market adoption
  • Expanded capital participation
  • Global growth

Technology

MAZAKALI’s online marketplace was designed to provide compliance, convenience and confidence to the cannabis private equity investment process. The company’s investment services include education, research and execution on an intuitive digital interface. Investors can gain exposure to direct placements, managed accounts and third-party funds in a compliant and convenient marketplace.

Market Outlook

The global growth forecast by MAZAKALI is backed by other analysts and experts in the niche. According to Grand View Research, the global cannabis market is expected to grow exponentially amid increased acceptance of the plant worldwide. The industry is anticipated to reach $73.6 billion by 2027, expanding at a CAGR of 18.1%. In 2019, the largest revenue shares for cannabis belonged to North America, resulting in 88.4% of the worldwide market (https://nnw.fm/ETeEK).

According to a BCC Research report, the plant-based and botanical-derived drug market is also expected to grow globally and reach an estimated $39.6 billion valuation by 2022, marking a CAGR of 6.1% from the 2017 market value of $29.4 billion (https://nnw.fm/LNvRC).

Management Team

Sumit Mehta is the Founder and CEO of MAZAKALI. A cannabis strategist, Mr. Mehta is an internationally recognized speaker and the author of the MAZAKALI GreenPaper®. In addition to his role leading MAZAKALI, Mr. Mehta serves on several cannabis company boards and is the Chair of the Banking and Financial Services committee for the National Cannabis Industry Association. Mr. Mehta is the former Director of Finance for the Arcview Group and, prior to entering the cannabis industry full-time in 2016, spent 20 years on Wall Street at firms including JP Morgan, UBS and Merrill Lynch. Mr. Mehta has earned an MBA from the Ross School of Business at the University of Michigan and a BA with Honors in Economics with minors in Math and Physics from the University of Texas at Austin. Mr. Mehta holds FINRA 7, 63, 65 and 79 licenses, as well as a Certificate in Financial Technology from Harvard University.

Craig Piatti is the company’s Chief Operating Officer. He is responsible for developing and driving the firm’s infrastructure, technology and organizational processes. Prior to joining MAZAKALI, Mr. Piatti worked at Alibaba’s cloud computing division on strategic business development. He has also worked with global firms including SAP, Bosch and China Telecom. He holds an MBA from the University of Notre Dame – Mendoza College of Business and a BS from Indiana University – Kelly School of Business. He also holds a Diplom-Betriebswirt (BWL) from Reutlingen University in Germany and a FINRA 65 license.

Mary Beth Barron is MAZAKALI’s Chief Marketing Officer. Ms. Barron leads the company’s marketing strategy, brand management, communications, advertising, public relations and digital marketing. Bringing more than 20 years of marketing and business leadership experience, her career started at Apple Far East (Hong Kong). She served as a top marketing leader for several global professional services – giving her marketing responsibilities in more than 30 countries. Ms. Barron holds an MBA from the Kellogg School of Management at Northwestern University and a BA from The Colorado College.

Bob Peatman is the Director of Investments for MAZAKALI. Mr. Peatman is responsible for assisting wealth managers and investors with cannabis-related investment opportunities. Mr. Peatman has worked with retail and institutional investors throughout his financial career, with a focus on digitizing and expanding national sales distribution networks. He holds an MBA from Babson College and a BA from St. Lawrence University.

Justin Schleifer is MAZAKALI’s Director of Compliance. Mr. Schleifer is responsible for developing the firm’s controls and overseeing its advisory business. He is also the CEO and Co-Founder of Aspect Advisors, a San Francisco-based compliance consulting firm for asset managers, broker-dealers and fintech businesses. Schleifer has extensive experience interfacing with the SEC, FINRA and the NFA. He earned his BS in Hotel Administration, concentrating in Business Law, from Cornell University. He also holds FINRA Series 7, 24, 27, 55, 66, 79 and 87 licenses.

Mathew Auric serves as Legal Counsel for MAZAKALI. In his role, Mr. Auric is responsible for general legal support, including contract drafting and negotiation, internal business structuring, strategic planning and liability management. Mr. Auric is a corporate attorney with cannabusiness firm Hoban Law Group, with a deep understanding of the regulatory, practical and historical issues involving cannabis. He received his JD from Ventura College of Law and a bachelor’s degree from the University of California, Santa Cruz.

Investment Considerations
  • Grapefruit USA Inc. holds licensing for manufacturing and distribution in California, issued in 2018; the company is positioned as a premier distributor and manufacturer in the state, with a focus on procuring, manufacturing and distributing the highest-quality materials.
  • With cannabis legalization gaining momentum worldwide, Grapefruit is currently uniquely situated to disrupt the market through its novel and proprietary products and services.
  • The global cannabis market is expected to grow to $97.35 billion by 2026, expanding at a CAGR of 32.92%.
  • The company provides a wealth of cannabis flower and cannabis products to licensed businesses, along with various services including distribution, manufacturing, toll processing, sourcing and more.
  • The company has effectively used science and technology to create patented, truly disruptive products for the recreational and medicinal marketplace.
  • Grapefruit’s patented Hourglass™ topical delivery cream has solved the previously insurmountable difficulties of efficient skin absorption of THC and other cannabinoids.
  • Hourglass™ is manufactured exclusively at Grapefruit’s Coachillin facility by highly trained Grapefruit personnel and is available to the public only through Grapefruit authorized retailers; there is simply no other way possible for the public to obtain the benefits of the disruptive Hourglass experience.
  • Hourglass™ is a time-released topical cream that is available in full-spectrum and hemp-derived patented formulas.
  • The Hourglass™ topical delivery system features the Patchless Patch™ technology, providing a time-released full-spectrum entourage effect or a pure CBD experience.
  • Grapefruit will distribute the hemp-derived version of its Hourglass™ Topical Delivery Cream on a nationwide basis.
Investment Considerations
  • MAZAKALI’s management team has vast experience in the cannabis industry, helping uniquely position the company to dominate one of the fastest-growing industries in the world.
  • The MAZAKALI management team has extensive experience at Fortune 500 companies, including UBS, JP Morgan, Merrill Lynch, Apple, AliBaba and AT Kearney.
  • The cannabis market is expected to reach $73.6 billion by 2027, growing at a CAGR of 27%.
  • The company places authority and knowledge on the same pedestal, providing GreenPapers® as a valuable educational tool for the public on all topics and trends related to the high-growth cannabis industry; over 70 GreenPapers® have been published since 2016, attracting over 70,000 subscribers to date.
  • The MAZAKALI investment team is comprised of licensed investment bankers and Registered Investment Advisors; securities are offered via a registered broker/dealer.
  • MAZAKALI’s online marketplace serves cannabis capital formation with scalability, sustainability and sensibility.
  • MAZAKALI aims to create a healthier and sustainable world through the purposeful placement of capital.
Additional Resources