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Your Stake in the $22 Billion Dollar Cannabis Industry

Is now the right time to invest in the Cannabis Industry?

As of this year, cannabis is legal in 29 states plus the District of Columbia, and the number is rising.

The Cannabis Stock Index is up 26.4% month-to-date.

~30,000 new cannabis companies have entered the space this year.

There is a noticeable trend here that seems to be pointing towards, yes.

The Spark

Five years ago, Colorado and Washington legalized the adult use of marijuana, sparking what is now one of the fastest growing industries in the U.S.

The industry has since been growing at a 16% compounded annual growth rate.

By the end of 2020, it’s projected to double in size from $22 billion in 2017 to $44 billion.

U.S. Cannabis Industry Total Economic Impact: 2013-2020 in Billions (Marijuana Business Daily)

What was once a taboo is changing the minds of constituents and investors alike.

⅔ of the population is for the legalization of cannabis.

This year alone, 31% of americans will begin living in cannabis-friendly states.

Clearly there is a bright future ahead.

The Problem

The growth is tangible, but the risks are substantial.

Cannabis is still federally illegal and labeled a Schedule I drug.

Some cannabis stocks hoping to make it big still have to wait for this to change.

Those that don’t still have to follow highly regulated state laws and some existing companies are limited in their ability to sell across state lines.

For investors, the opportunities to profit from a legitimate company who sells marijuana products are scarce.

For example, the U.S. Food and Drug Administration has only approved a grand total of three cannabinoid-related drugs: AbbVie (NYSE:ABBV), Valeant Pharmaceuticals (NYSE:VRX), and Insys Therapeutics (NASDAQ:INSY).

As mentioned above, upwards of 30,000 new cannabis businesses have entered the cannabis space this year.

This means a highly saturated market that investors have to shuffle through to separate the good from the bad.

Your Stake in The Green Rush

So, how can investors get involved while reducing their risk profile?

One solution is to invest in companies that don’t actually touch the plant.

Just imagine the profit gained from those who sold shovels during the gold rush.

The idea is the same with ancillary service companies, supporting the industry’s growth while sidestepping a lot of the risk.

Cannabis businesses who support the industry with real estate, technology, equipment needs, etc., make up a large, yet often undervalued part of the industry.

It’s hard to pinpoint just how much money has poured into ancillary service companies supporting cannabis businesses, but the number falls easily into hundreds of millions.

These companies are benefiting from the industry growth and the extended freedom to sell products and services across the U.S.

But again, the space is crowded with startups, and it can be hard to decipher the promising from the weak.

One ancillary service company to look at is Scotts Miracle-Gro (NYSE:SMG) who generated 2.8 billion with 10% of the revenue coming from the hydroponics companies it acquired.

The spotlight is also on Doyen Elements, who just launched its IPO and is giving retail investors the opportunity to buy into it before the company’s planned stock market listing.

Doyen Elements has purchase agreements for 16 different businesses spanning across all areas of the cannabis industry.

Recently the company made headlines for beginning construction on a 234,000 sq. ft. grow facility, one of the largest in North America.

The company also plans to list on the OTCQX after the offering closes.

In closing, while there is a lot of risk involved when investing in the cannabis industry, the potential upside makes it well worth the research and diligence to find the right way to get involved.

To read more visit: https://www.modestmoney.com/stake-22-billion-dollar-cannabis-industry/

Oregon Distributes $85 Million in Legal Cannabis Tax Revenue

Oregon is reaping the green benefits of its legal weed industry to the tune of a cool $85 million. Having legalized marijuana in 2014, Oregon has finally begun to distribute the tax dollars that the state has collected, after a two-year wait.

Wait, What Took Oregon So Long To Distribute Its Legal Cannabis Tax Revenue?

The reason is that the Oregon Liquor Control Commission (OLCC), which oversees the state’s legal marijuana program, had to first reimburse the administrative costs associated with setting up and implementing the program.

The OLCC took out a loan for $13 million to cover the initial setup costs, agency spokesman Mark Pettinger explained to the King5 television station.

Now that the money has been paid back, it’s time to distribute the tax revenue to various health, educational and law enforcement programs across the state.

How Does Oregon Distribute Its Legal Cannabis Tax Revenue?

Here’s a break down of where the money is going, according to the Oregon Department of Revenue:

  • $34 million will benefit the state school fund.
  • $17 million will go to the mental health, alcoholism and drug services account.
  • $17 million will go to Oregon cities and counties.
  • $12 million will go to the Oregon State Police.
  • $4 million will go to the Oregon Health Authority.

And apparently this is just the tip of the iceberg. Oregon’s weed sales have far exceeded all expectations.

“I am glad to hear that the revenue is finally being distributed,” Anthony Johnson, the chief petitioner of Measure 91 told the Oregonian. “This is what the voters intended. It shows that legalizing and regulating cannabis can help generate revenue for important governmental services.”

During just the first three months of this year, roughly 11,000 pounds of weed were sold in the state’s approximately 300 legal dispensaries, for total sales revenue of $43.7 million, generating some $13.4 million in sales tax revenue.

Thankfully, this is happening—or will happen if given the chance—all around the country.

Marijuana tax revenue is expected to exceed $2.3 billion by 2020 in the United States and create up to 300,000 jobs. Think of all those social, educational, housing and drug counseling programs that can be funded with these tax dollars. Who wouldn’t want to be part of one of the fastest growing industries in the United States? Why not tell your congress people that you’d like to be!

To read more visit: https://hightimes.com/business/oregon-cannabis-tax-revenue/

Zenapay Latest PoS Bitcoin Solution to Enter Projected $50 Billion Cannabis Market

US cash-intensive cannabis businesses (420s) are looking for ways to meet customer demand while struggling under federal prohibition. Cryptocurrencies are increasing in popularity with 420s, and now Zenapay is entering the market with its own bitcoin solution.

Also read: Indospace Allows Cannabis Merchants to Accept Bitcoin Effortlessly

Cannabis Cash

The US states comprising its contiguous west, if outliers include Alaska and Nevada, is home to fifty-two million people. That is an enormous market. They also happen to be the bulk of states that have legalized cannabis for personal use, medicinal use, and sale.

Tension arises between all such states and the federal government because the federal government does not agree with voters’ will.

Zenapay Latest POS Bitcoin Solution to Enter Projected $50 Billion Cannabis Market

Beyond criminality, issues of banking and finance come into play. The federal government is given wide jurisdiction over banking and money, and financial institutions are wary of  running afoul of federal laws.

In practical terms this means bank accounts, access to lines of credit, and myriads of financial products are in practice forbidden to 420 companies.

Much as it was on the black market, 420s are reliant almost exclusively upon cash.

Mounds of cash on hand is not only a logistical nightmare in a modern economy, it’s also a real security issue. And with twenty more states coming online, passing slimmed-down versions of legalization/decriminalization, the cannabis market is looking for relief.

Bitcoin Solution

“Statistics from financial services firm Cowen & Co showed legal cannabis was a $6 billion industry last year, and is expected to grow to $50 billion by 2026,” RT onlinereports.

Population numbers and these projections are enticing payment service providers into the cannabis market.

The latest such example is a company out of Chicago, Epazz. It’s an over-the-counter publicly traded business software concern, betting rollouts early winter of this year in Apple’s App Store, and later for Android, will go a long way in making 420s more efficient and safer.

Zenapay Latest POS Bitcoin Solution to Enter Projected $50 Billion Cannabis Market

Zenapay is a one percent transaction fee, point-of-service (POS) solution. It boasts online and in-store bitcoin purchases capability using proprietary software, allowing for customer anonymity and for 420s to lessen cash burdens.

“We are filling a large need in the cannabis community,” the company’s press release quoted its CEO Shaun Passley. Merchants, he said, “due to the stringent limitations by the standard banking systems” simply cannot be banked.

A PoS with bitcoin functionality eliminates these issues.

Entrepreneurial bitcoiners, regardless of niche, are constantly looking for POS services to keep accounting straight as they look to drop cash dependency for bitcoin.

If it proves successful, Zenapay says it will offer payroll services, e-commerce stores, inventory tracking, and compliance features going forward.

What do you think? Are 420s a welcome addition to the bitcoin ecosystem? Are solutions preserving anonymity finally ‘getting it?’ Tell us in the comments below! 


Images courtesy of: Original Strains Seed Bank, Green Rush Daily.


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Disclaimer: None of the information on news.Bitcoin.com is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products or companies. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

To read more visit: https://news.bitcoin.com/zenapay-latest-pos-bitcoin-solution-to-enter-projected-50-billion-cannabis-market/

Investing in Cannabis? Consider Going Global With Canadian Companies

With so many American states legalizing medical and adult-use cannabis, it’s no surprise that entrepreneurs are joining the rapidly growing industry. Federal illegality, though, makes it tough for these pioneers and their investors to make money.

Canadian cannabis companies are active on five continents, so investors may participate globally without leaving Canadian securities.

Scaling a business that’s prohibited from selling product outside the state in which it’s produced is quite challenging. Add the onerous federal 280E tax—which disallows normal business expenses and can lead to income tax being due even when a company isn’t even profitable—and it’s no wonder that we aren’t seeing a bull market in cannabis producers or retailers.

Last month, I suggested that investors looking to capitalize on cannabis legalization would be wise to explore international options. While the United States has yet to embrace cannabis legalization at the federal level, several other countries have created federally legal medical cannabis programs.

Our neighbors to the north and south are on board. Mexico recently legalized (but hasn’t yet implemented) medical cannabis. Canada’s federally legal medical cannabis program now serves more than 200,000 patients nationwide. Uruguay has legalized cannabis and allows it to be sold in pharmacies.

While countries on five continents (not Asia or Antarctica) have embraced medical cannabis at the federal level, investors should pay particular attention to five regions that show particular promise. The good news is that there are Canadian companies active in all five, which means investors may be able to participate globally without trading in securities all over the world.

Canada

When it comes to legal cannabis investment opportunities, Canada is the king. Health Canada, which oversees the medical program, has issued 62 licenses to about 50 medical cannabis companies, and 23 of these licensed producers (LPs) trade publicly. Five even trade on the Toronto Stock Exchange, the equivalent of our own New York Exchange, including Aphria, Aurora Cannabis, CanniMed Therapeutics, Canopy Growth and MedReleaf.

These companies are positioning for full legalization in July by expanding their production capacity and ramping up their extracts expertise. Canada was slow to permit cannabis concentrates, but concentrates are now driving industry growth, despite the fact that they remain highly restricted (oil only, with THC potency capped). In addition to serving a larger market following legalization next year with a broader array of products over time, including edibles most likely, many of the Canadian LPs also have global operations.

The publicly-traded LPs include not only these global titans but also some smaller producers positioning for legalization with their craft cannabis offerings. If you want to stay on top of the Canadian industry, we have developed a resource for investors at New Cannabis Ventures.

Germany

Germany legalized medical cannabis in early 2017, and is currently in the process of licensing companies for production. For now, its market is small and being supplied with imported products, mainly from Canada. What makes this market so interesting, besides the large population (83 million) is that medical cannabis will be distributed in pharmacies and health insurance will cover it.

I’m not aware of any publicly-traded German companies that have announced an interest in entering the sector, but several Canadian companies are either supplying the market now or have announced plans to apply for a production license, including ABcann, Aurora Cannabis, Canopy Growth, Cronos Group, Maricann and MedReleaf. Other European countries are already liberalizing, and Germany’s program will likely lead to other countries implementing similar programs.

Australia

The market is very limited in Australia for now, with most of the industry focused on research. There are a few companies with production licenses, though, including publicly traded Cann Group and Auscann Group. Several others are not yet licensed but trade publicly, and the market has been in a bit of a bubble this year.

Investors interested in Cann Group or AusCann Group can gain exposure through Canadian companies like Aurora Cannabis, which owns about 20% of Cann Group; or Canopy Growth, which owns about 10% of Auscann.

South America

While Uruguay has legalized the adult use of cannabis, Colombia and Chile have legalized medical cannabis. Auscann Group has a partnership with the only license holder in Chile. International Cannabis Company is a publicly-traded company in Canada that operates in Uruguay. Canopy Growth has established a joint venture in Brazil, which permits medical cannabis on a limited basis. I expect to see two other Canadian companies that operated in Colombia go public in 2018.

Israel

Perhaps the global cannabis research leader, Israel permits medical cannabis but doesn’t yet have a very developed industry, though that’s likely to change soon.

Cronos Group, a company that wholly owns two Canadian LPs and has stakes in several others, announced a deal last month to establish Cronos Israel and build a facility on Kibbutz Gan Shmuel, targeting initial annual production of 5 million grams at a cost of less than C$0.50 per gram. Given the country’s reputation for innovation, its unique genetics and the potential to export to Europe, I expect to see more deals like this one.

The bottom line: There is a world of opportunity for cannabis investors, and perhaps the best way to play it is by investing in Canadian LPs that are actively pursuing global opportunities.

Next up: How Canadian companies are funding the U.S. cannabis industry. Talk with you in three weeks.

To read more visit: https://www.leafly.com/news/industry/investing-in-cannabis-consider-going-global-with-canadian-companies

Cost of Cannabis Regulation Too High for California Growers?

The world is watching as California comes into the main fold this next year with a full adult legalization policy. The enormity of the market, matched with global regional brand recognition, and California’s propensity for bureaucracy make an interesting confluence for cannabis. Farmers have been operating, some for decades, in remote corners of northern California. Some farmers have been operating just a year or two, pushing aggressively into a US market formerly dominated by Mexican ditch weed.

Now that legalization has moved to the political forefront, all the freedom and transparency of an above-ground business will alleviate the stress which has weighed down illegal operators toiling in the fields for years! State regulation will show the world that cannabis is nothing to fear! Finally we can save large swaths of the environment by planting this miracle crop! All the dreams of backwoods marijuana growers have wished to have for years will finally come to fruition! And we shall all move forward in a new age of enlightenment, solving all the problems of capitalism with a new paradigm!

Or maybe not.

According to a recent article in the New York Times, California growers are slow to sign up for the new system. Fears abound that failure to buy in to the new legal system will lead to loss of profit and consumer base, and no one is arguing with the suggestion that California exports, and will continue to export, large swaths of cannabis on the black market:

 

“Based on data from various state and county agencies, Mr. (Hezekiah) Allen, of the (Emerald Growers Association), estimates that about 11 percent of growers — about 3,500 of 32,000 farmers in the Emerald Triangle, which covers Mendocino, Humboldt and Trinity counties — have applied for permits. Most have been deterred by the voluminous paperwork to obtain a permit, the fees and the taxes, he said.

“Critics said the framers of the law might have also miscalculated because many growers say there is little upside from getting a permit. If they stay out of the system, they face lighter punishments and avoid paying taxes, fees and the cost of meeting environmental standards.

“…Small-scale growers have planted marijuana in the backwoods of the Emerald Triangle for decades. But in recent years Northern California has seen what has been called a ‘green rush’ of entrepreneurs with a more laser-focused profit motive and often little regard for forests famous for their giant redwood trees.”

The article mentions numerous outside “investors” who have flooded into the California cannabis market space, both legally and illegally, from Bulgarians and Russians, to Chinese and Hmong, to Jamaicans and Mexicans.

All eyes are on California in the coming year to see how the new legal structure plays out. Let’s hope the red tape doesn’t hold up good players while supporting a robust system of illegal regimes. It is important that local growers, patients, consumers and advocates speak out early and often to ensure that local farmers and mom-and-pop shops have a foothold in the new commercial market.

Want to stay informed about California’s cannabis laws? Join the International Cannabis Business Conference February 1 and 2, 2018 in San Francisco, California. Get your tickets today! Can’t make it to San Francisco or want to get a jump on learning important information about the industry? Then join us December 1-3, 2017 in Kauai, Hawaii!

To read more visit:  http://marijuanapolitics.com/cost-of-cannabis-regulation-too-high-for-california-growers/

CBD Water Could Be The Next Big Trend In Cannabis

CBD water promises to bring together the best of what pure water and CBD have to offer.

A handful of cannabis companies are coming up with innovative new ways to tap into the health benefits of cannabidiol (CBD). In particular, CBD-infused water is the latest product to hit the market. Now, CBD water could be the next trend to sweep the cannabis scene.

The Potential of CBD Water

CBD water is exactly what the name implies: CBD-infused water. The combination of pure water and CBD could have some impressive health and medicinal properties.

For starters, water is crucial for good health. In particular, staying hydrated is a key to pretty much every body function, and is important for maintaining your general well-being.

On top of that, researchers are discovering a number of health and medicinal properties associated with CBD.

In general, CBD is often thought of as the non-psychoactive complement to THC. That’s because it helps mellow out and counteract some of the potentially negative effects of THC.

But beyond that, it also produces a range of powerful effects on its own. So far, research has found that CBD can provide treatment for a number of health conditions. As evidence, here’s a quick rundown of what CBD can do:

  • It can be used as an anti-seizure medicine.
  • CBD has anti-inflammatory properties.
  • CBD is a “neuroprotectant.” That makes it an effective way to treat symptoms associated with a variety of neurodegenerative diseases.
  • It can be a powerful pain-reliever.
  • Recent studies suggest that CBD may be an effective anti-tumor agent.
  • CBD also has antipsychotic properties.
  • It can help reduce anxiety.
  • CBD can help those dealing with PTSD.

CBD water brings all these health and medicinal properties together into a discreet, convenient, easy-to-use format.

You can drink it straight. Alternatively, you can add it to other drinks or snacks to turn pretty much anything you want into a CBD-infused edible.

New Innovations in the Cannabis Industry

CBD water could be the next big trend in the cannabis industry. More immediately, it represents the latest innovation to come out of the industry.

So far, there are already a handful of companies to bring CBD water to market. And many of them rely on some new technologies to make it happen.

Making CBD-infused water is actually a lot more complicated than it might at first sound. That’s largely because cannabinoids like THC and CBD don’t naturally bond well with water.

This means that cannabis companies had to come up with another way of making it happen. As a result, many CBD water products rely on “nano technology.”

CBD Living Water, one of a handful of companies now selling CBD water, said the process relies on “quantum physics” to reduce CBD “into tiny particles, one millionth of their size.” From there, the nano-sized CBD particles are encapsulated “in a water cluster.”

The company claims that this process doesn’t just provide a way to infuse water with CBD. According to the company’s website, those tiny particles of CBD are also more readily absorbed by your body. This, the company reports, helps optimize the medical potential of the cannabinoid.

Final Hit: CBD Water Could Be The Next Big Trend In Cannabis

CBD products are becoming a staple in the legal cannabis market. Researchers continue learning more about how this cannabinoid can be used as a health supplement and as a medical treatment.

This expanded body of research will likely fuel an equally explosive growth in the number of CBD products on the market. CBD water is the latest example of this growth.

Given how easy CBD water is to use, dose, and consume, CBD water could very well become the next big trend in cannabis.

To read more visit: https://www.greenrushdaily.com/cbd-water-trend-cannabis/

Congress Shares The Same Opinion, With Lawmakers Wanting To See Additional Clinical Evidence Before Considering A Federal Medical Marijuana Bill.

However, the Catholic Church in Mexico widely opposes the use of marijuana, and a Nov. 2015 telephone poll by the El Universal newspaper found that 66% of Mexicans opposed legalizing the drug (albeit the question appears to have been phrased in terms of recreational legalization as opposed to medical). Comparatively, support for recreational legalization in the U.S. tends to hover around 60%. In other words, Mexico’s legalization of medical weed seems to be more of a baby step than a full-ranging expansion of medical pot access. What’s more, it doesn’t appear as if the U.S. will be following the suggestion of Pena Nieto and aligning its marijuana policies with that of its neighbor to the south. The U.S. Drug Enforcement Agency (DEA) had its opportunity to reschedule marijuana last year away from its current schedule I categorization following two petitions to do so, but chose to keep its status the same. The DEA cited a lack of risk-versus-benefit analyses, as well as a lack of marijuana-use oversight as reasons to keep its scheduling unchanged. Congress shares the same opinion, with lawmakers wanting to see additional clinical evidence before considering a federal medical marijuana bill. Mexico’s legislation also fails to clear up how it’ll deal with keeping children from accessing marijuana, as well as keeping impaired drivers off the roads.

To read more visit https://www.fool.com/investing/2017/07/01/its-official-mexicos-president-signs-a-bill-legali.aspx

However, An Audit Of The Organization’s Accounts By Pnc Reportedly Revealed That Mpp Received Some Funding From Businesses In The Marijuana Industry.

If a customer could be engaged in criminal activity, banks are prohibited from doing business with the customer.  MPP doesn’t grow or sell marijuana. However, an audit of the organization’s accounts by PNC reportedly revealed that MPP received some funding from businesses in the marijuana industry. Although these businesses operate in states where marijuana has been legalized, because use and sale of marijuana remains illegal under federal law, PNC apparently decided it could no longer do business with MPP. The organization had been a customer with PNC Bank since it was founded in 1995.  PNC is just one bank. MPP is just one organization. It’s possible that this recent development doesn’t lead to anything further. However, it’s also possible that PNC’s decision is just the first domino to fall in a series of many others. Although many major banks deny that they conduct business with companies in the marijuana industry, research by financial services publication American Banker found otherwise. An analysis revealed that in Massachusetts alone, four major national banks did business with numerous marijuana-related customers. In 2014, the U.S.

To read more visit http://host.madison.com/business/investment/markets-and-stocks/this-recent-development-could-signal-danger-for-marijuana-stocks/article_ab0ebb04-41ba-5c5f-b22a-d5304aba4a0d.html

The President Doesn’t Have The Power To Overturn Our Votes.

I didn’t plead with these businesses to make as much money as possible and then use that money to get the hell out before it’s too late. That’s not the united front the American cannabis industry is after. These are hopeful, optimistic business owners who have watched cannabis laws slowly change in their favor, and they’re doing all that they can to work with lawmakers and educate citizens to continue that trend. This American industry is looking not just to make history but to make America a better place for generations to come. Their tax money is making a significant difference in their local communities — how many of us see our taxes directly contribute to anything worthwhile (and by worthwhile I mean schools, roads, libraries — not foreign wars). The cannabis industry is about innovation as much as it is about fighting against oppression. That’s the American way. And it’s all of our jobs as American citizens to remind the federal government what that means: When we the people vote to legalize something, we legalize it. The president doesn’t have the power to overturn our votes. Our faltering economy needs the American cannabis industry to continue to grow and succeed. It’s really that simple.

To read more visit http://www.cnbc.com/2017/07/11/trump-will-cripple-states-if-he-reverses-marijuana-laws-jesse-ventura.html

Townships And Cities Would Again Choose Whether Or Not To Allow Recreational Marijuana Businesses.

“This is the most responsible way to regulate marijuana,” said Josh Hovey, a spokesperson for the coalition. “There are already those out there who are operating medical marijuana business. Burying our heads in the sand and ignoring the adult-use side of the marijuana market isn’t going to solve any problems.” The bill Marijuana Stocks also creates a structure for the recreational marijuana industry that’s much like the medical industry as state licenses would be issued to growers, processors, transporters, testing facilities and retailers. Townships and cities would again choose whether or not to allow recreational marijuana businesses. “Our initiative would have a very similar approach to (the medical marijuana laws passed in 2016),” Hovey said. “… All of the work they’re doing now will give them a fairly good position to be in when the adult-use comes into play.” Michigan first legalized medical marijuana in 2008. But marijuana advocates here know the leap from medical to recreational legalization can be considerable. In 2016, the group MI Legalize put forward a similar petition effort to legalize recreational marijuana. It failed to make the ballot, however, because of a lack of valid signatures of support within the legally required 180-day window. MI Legalize took the case to the Michigan Supreme Court, but the Court declined to hear the appeal.

To read more visit http://www.southbendtribune.com/news/local/group-makes-push-for-recreational-marijuana-in-michigan/article_3e644330-5a41-53c6-be4b-7df597b546a8.html