About

Cosentra is a cannabis consultancy and product development company based in New Jersey and founded by Matt Ackerman, an entrepreneur who co-founded and successfully sold Swurfer, a toy manufacturing company. Matt has worked in the legal cannabis industry in Northeastern United State since 2017, most of that time as an operations executive for MariMed (stock ticker: MRMD). At MariMed, Matt helped build and manage large-scale cultivation, manufacturing, and retail operations in 4 different states in the northeast.

Cosentra also utilizes specialists with expertise and many years of experience in key aspects of cannabis operations, including cultivation and facilities construction.

Cosentra currently works with clients in multiple states to achieve cannabis licenses and improve the management of their operations. It is also developing a line of products based on rosin extracted from hemp. Our clients range from entrepreneurs and investors who are considering entering the industry to licensed operators running businesses that generate millions of dollars in monthly revenue.

We believe the best opportunities in cannabis are:

 

 

A lot of money has already been made in legal cannabis in America, but the size of the market is still less than $18 billion annually. 

Most estimates project the market will grow to $50 billion annually. That’s a lot of room left to run.

America is the largest economy in the world, the country with the best record of entrepreneurship and innovation in world history, and the country with the most developed cannabis culture (including you, Netherlands.) 

Acceptance of cannabis use, both recreationally and medically, has soared in recent years, and, as of February 2021, thirty-five states have legalized medical use, and sixteen of these have also legalized recreational use. More than 68% of Americans (or nearly 224 million people) now live in a state that has legalized medical use, and more than 30% (or more than 100 million people) live in a state that has legalized recreational use.

It is reasonable to expect that legalized recreational use will spread to most of the states that have legalized medical use in coming years, which means more and more opportunities will continue to crop up in the United States. And while federal legalization remains a lift, some form of a national market seems inevitable. 


Continuing cannabis prohibition by the federal government has created a patchwork of markets in each state. While there are obviously many similarities across state markets, each is also truly unique, with its own specific mix of regulatory requirements. Some have achieved or are near to full maturity, making entry for new participants difficult. But others have barely scratched the surface.

Nowhere is this as true as in the Northeastern United States, which still has only one active recreational market (Massachusetts) and whose largest markets (New York and New Jersey, in particular) remain severely underdeveloped.

In the cannabis world, a lot of attention is paid to “multi-state operators” (MSOs – they even have an ETF named after them). Indeed, many are publicly traded and have enjoyed soaring stock prices in recent years, with some sporting market capitalizations well into the billions of dollars.

The argument for these companies is easy to make: scale in cannabis in the United States right now is only achievable for companies with operations in multiple states. Furthermore, these operations should allow these companies to capture brand equity for their products among consumers, giving them a leg up in the race to become the Budweiser of cannabis.

While it is true that some MSOs have achieved impressive results, and that there is of course merit to the above arguments, we feel strongly these points are overshadowed by the enormous complexities involved in running large operations in multiple states simultaneously.

Transportation across state lines of any cannabis products of any kind (including cloned plant seedlings) is illegal and subject to potentially enormous consequences by federal law enforcement. Further, each state’s market truly is unique, with its own requirements for packaging, and allowances for product types. (New York for example still does not allow the sale of smokable flower, while until recently New Jersey didn’t allow the sale of products other than flower.)   

This means that running a cannabis company in multiple states in the United States right now is even more complex than running another kind of company in multiple countries. For any state where you want to sell your product, you must either be licensed to produce it and have your own production operation, or a partnership with a local licensed producer who white labels the product on your behalf.

Moreover, the tendency for many MSOs is to be vertically integrated (or at least have a hand in all three principal parts of the cannabis supply chain: cultivation, manufacturing, and retail.) This creates additional layers of complexity, as each of these component parts are difficult businesses to master in and of themselves. Multiply in the large library of brands and product types MSOs also tend to carry, the heavily regulated nature of all cannabis operations, the unique tax consequences of running a business that sells a federally prohibited product, different state technology requirements, and you have an exponential degree of complexity.

Cosentra believes that both MSO operators and funders have, to date and to a large degree, substituted the easy arguments for the reality that managing this degree of complexity would be difficult for any business manager ever, no matter how skilled, hard-working, or experienced. Many of them have and will get rich from the stock market enthusiasm the easy arguments generate. And some may in fact emerge as huge winners in the next ten to twenty years.

Nevertheless, we think the best business opportunities currently available are for those willing and able to create businesses narrowly focused on one of the three principal parts of the cannabis supply chain and on one or very few states.

[add material about how small companies will have a longer run then people think as well and how going small will be a better way to develop a brand than going large]

These companies will have the best opportunity to generate profits that offer extraordinary dividend returns to their owners while creating stable companies with balance sheets and income statements of true value for the long-term. Lean, focused, and healthy, we believe many of these types of companies already are (and are posed in the future) to beat the over-sized MSOs.

We are in the business of helping investors and entrepreneurs of all sizes and experience levels find their way into the cannabis industry, where the opportunity remains ripe for anyone to take advantage of the 21st century green rush [link.]