Investment Strategy

A Disciplined Approach to High-Growth Cannabis Investments

NovaTerra Capital focuses on diversified equity investments in high-potential cannabis operators within regulated, limited-license markets. Our structured investment approach ensures long-term value creation by supporting businesses with operational oversight, regulatory expertise, and financial discipline to maximize investor returns.

Retail Dispensaries – High-margin businesses in prime locations with strong consumer demand.

Processing & Manufacturing – Value-added product development, including extraction and infused product manufacturing.

Cultivation – Select investments in cultivation operations positioned for wholesale dominance in high-priced markets.

How We Select Investments

NovaTerra Capital employs a rigorous selection process to identify businesses that are well-positioned for growth, regulatory resilience, and operational efficiency:

Limited-License Market Focus. We invest in Maryland and New Jersey, two high-barrier-to-entry cannabis markets with strong regulatory protections, high wholesale prices, and limited competition.

Embedded Operational Oversight. Through our partnership with Tivity Labs, we provide active management support, operational guidance, and strategic planning to ensure each portfolio company scales effectively and profitably.

Scalable and Efficient Business Models. We prioritize businesses that demonstrate lean operations, cost efficiency, and the ability to scale profitably as the cannabis industry matures.

Risk Mitigation Through Diversification. NovaTerra diversifies capital across multiple companies, verticals, and regulatory environments, reducing investment risk while enhancing overall fund performance.

Performance-Driven Investment Structure. We invest in companies with clear financial controls, transparent governance, and structured exit strategies, ensuring our investors benefit from sustainable growth and liquidity events.

Active Portfolio Management

Unlike passive investors, NovaTerra Capital actively supports each portfolio company to drive profitability and operational success:

Regulatory Compliance & Licensing – Ensuring adherence to state laws and securing long-term business viability.

Cost Reduction & Supply Chain Efficiencies – Lowering expenses and optimizing procurement to improve margins.

Revenue Growth Strategies – Implementing data-driven sales and marketing strategies to increase market share.

Capital & Financial Structuring – Helping operators secure debt and equity financing for sustainable expansion.

Why Our Approach Works

NovaTerra Capital’s investment strategy is structured to deliver superior returns while managing risk in the rapidly evolving cannabis industry. By aligning our capital with proven operators, embedding institutional-grade management, and leveraging Tivity Labs’ operational expertise, we create a win-win environment for investors and portfolio companies alike.