Stock Market for Marijuana on the Rise
posted by Dominque Elliott, Keyona Smith | October 3, 2018 | In NewsIf you are going to invest in the marijuana industry, right now is the time to do so. According to ProCon.com, there are 31 states and one district, D.C., that have legalized medical marijuana. Only nine states and the district of D.C. have legalized marijuana for recreational use. These nine states are Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, Vermont and Washington. In July of 2018, California began to issue out licensure for retail shops to sell recreational weed.
With the legalization of recreational weed, marijuana businesses have begun to increase exponentially. GreenWave Advisors, a company that researches and analyses the growing legalized cannabis industry, project a market of $13 billion in the U.S. for 2019.
This figure may be constrained though, since there isn’t legalization of the drug for the whole country- unlike countries such as Canada and Uruguay. According to CNBC, in July, Canada became the second country, after Uruguay, to establish the legal sales for marijuana for the entire country. On October 17, recreational marijuana will be officially legalized for adult use and sale in the Canadian districts.
“We are sitting back now and watching the Canadians take market share with regards to international export opportunity,” said Matt Karnes, founder of GreenWaves, to CNBC. “And multinational companies that are stepping in, or potentially want to step in, are all eyeing Canada, whereas I believe the United States clearly has the most robust and compelling opportunity for cannabis.”
In Toronto Stock Exchange, on September 5, Canada’s marijuana ETF, Horizons Marijuana Life Sciences Index ETF (HMMJ), reached over $1 billion in assets on the market, which translates to $758 million in U.S. dollars. The HMMJ was launched in April 2017, to track companies in the marijuana industry. The U.S counterpart ETF, The Alternative Harvest ETF (MJ) is now nearing $500 million.
Khadijah Adams co-founder of Marijuana Investment Private Retreat spoke to the Marijuana Investment Conference in Denver, Colorado how her stock investment ballooned to $1.5 million with added marijuana shares. “Marijuana is legal, it’s legalized here in Colorado and I firmly believe that it will be legal on the federal level between two and five years from now,” said Adams.
Adams and Duncan Cameron chief production officer for Good Chemistry dispensary share the same sentiment regarding opportunity within the industry. “We need CFOs, HR departments, office equipment … what all businesses need.” He urges that the trend of negative connotation within the minority community needs to change. The industry is already proving itself blossoming into a multi-billion dollar industry with just a few legalized states.
Leave a Reply
You must be logged in to post a comment.