Why The Cannabis Revolution Is Irreversible As Main Stream Investment Enters The Fray
April 7, 2017 - Economy, General Investments, Markets - 0 Comments
The cannabis industry’s growth rate, simply stated, is exploding. Legal marijuana sales exceeded $6 billion dollars in 2016, up 25% from 2015, and ArcView Market Research predicts the legal cannabis market will exceed $21 billion in total sales but 2020 and will top out at $50 billion. While technically cannabis is still an illegal substance at the federal level, many states such as Washington, Oregon, Alaska, Colorado, California, Arizona, Nevada, Main, Massachusetts, Arkansas, Florida, Montana, North Dakota, and the District of Columbia have, in some form or another, jumped on the cannabis bandwagon.
Over $1 billion dollars was raised within the United States in 2016 for cannabis related investments The 2 biggest in these capital raises came from a publicly traded biotech company, GW Pharmaceuticals, and real estate investment trust, Innovative Industrial Properties (IIPR). And even with the advent of a more conservative new administration investment is expected to double or even triple within 2017. Give the pressure from states needs additional tax revenue to cover escalating pensions, and infrastructure spending, unless something radical presents itself, legalization of cannabis at the federal level is expected to come at some point in the not so distant future.