Full Circle Capital: A Case Study of a Backdoor Cannabis Play

Always on the lookout for ways investors are participating the cannabis space, today we are taking a look at a publicly traded company that, on the surface, offers a unique access point. Rather than a recommendation for or against the companies mentioned here, consider this a case study on the intricacies and pitfalls of small cap stock investing in general, especially in areas like cannabis where “alternative financing” is often the only kind a company can obtain.

Full Circle Capital (NASDAQ: FULL) is an $80 million cap publicly-traded company that owns senior financing rights in Advanced Cannabis Solutions (OTCBB: CANN). Full Circle also owns debt and equity in many other companies across a wide array of industries, and is what is known as a Business Development Company, a special designation of a closed-end fund that primarily invests in higher risk and/or troubled companies. BDCs do not have to...

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