Regular legal weed users may have overlooked profitable cannabis investment opportunities. Marijuana-related enterprises today represent one of the booming industries in the USA and Canada.
In the United States, medical weed revenues are expected to have a compound annual growth rate of 17%. Medical marijuana sales are projected to grow from $4.7 billion in 2016 to $13.3 billion in 2020. Recreational pot sales amounted to $2.6 billion during that same period. The industry emerged as a gainful venture because of high earnings, legalization in more states, and product diversification.
Consumer spending worldwide can increase substantially very soon. Market researchers projected the amount to be at $32 billion by 2020 from only $9.5 billion last year and estimated North American sales to climb up to $47 billion by 2027. In fact, last July, the North America Marijuana Index gained almost 100 percent from 2017. This should mean stable growth year on year, including the legalization of weed in Canada, which should certainly stimulate growth in the industry.
Weed users must not miss these thriving cannabis investment opportunities. Medical firms and products offer more options than recreational merchandise. Some possible investments in major Canadian exchanges include Aphria [APHQF], Aurora Cannabis [ACB] (which recently acquired competitor CanniMed Therapeutics) and Canopy Growth [WEED].
Industry Developments. Points you are going to want to know about!
- Canopy Growth seeks to develop marijuana-based medicinal commodities with pharmaceutical ingredients to cure chronic ailments. OrganiGram also displayed strong performance during the 2nd quarter.
- For pharmacological firms, American GW Pharmaceuticals became the first-ever drug company to obtain approval by the Food and Drug Administration (FDA) for Epidiolex. FDA adviser unanimously endorsed regulatory clearance for this plant-based prescription medication last April. Prior to this milestone, only synthetic varieties of cannabis comprised legal prescription treatments.
- Another breakthrough for cannabis stocks in Canada is the appearance of Tilray [TLRY], the first marijuana firm with an Initial Public Offering (IPO) on the NASDAQ. Its initial price per share of $17 increased more than 21 percent due to the IPO.
- It’s good to know that aside from medical and recreational pot, many cannabis companies will possibly concentrate on hemp-based merchandise. These products normally do not possess psychoactive properties. Hempco, an affiliate of Aurora Cannabis, will include biofuels, body care products, clothes, construction materials, and health foods.
- At the moment The US Senate is reviewing a bill that could potentially legalize industrial hemp nationwide.
- Certain companies like Scott’s Miracle-Gro Company purchased Sunlight Supply and General Hydroponics. These firms produce weed-growing supplies. MedMen Enterprises sells marijuana goods and maintain dispensaries in various states. This company also plans to go public with a reverse takeover of unlisted Outdoor Partner Media Corporation.
- Two major categories of companies in this industry are ancillary businesses and licensed growers/manufacturers, distributors, or retailers. Subsidiaries do not touch the pot. Regulatory uncertainty in the United States forced many businesses to move to Canada by way of IPOs and Reverse Takeovers. MedMen and Illinois-based Green Thumb Industries (GTI) went public at the Canadian Stock Exchange (CSE).
- The global marijuana marketplace continues to contend with numerous challenges. Nonetheless, optimism remains upbeat even as nobody can predict what will come next. There is light at the end of the tunnel in Canada and 30 American states. With the impending legalization, observers see a multi-billion-dollar industry in the making. Then, there could be more adventurous entrepreneurs willing to take on cannabis investment opportunities.For more Cannabis Business News