It’s a rare event when a brand new industry sprouts to life right before everyone’s eyes, but that is exactly what’s happening with marijuana. Colorado and Washington state voters took to the ballots to usher in a new age in drug reform, and for one of those states at least, the results have been astounding. The rest of the United States is still coming to terms with how they want to deal with the new widespread support for marijuana decriminalization, and there are plenty of ballot initiatives in the works in state legislatures across the country.
As the stigma surrounding cannabis has quickly receded and support for legalization has climbed to an all-time high, the opportunity for entrepreneurs to jump in the game has never been better. Think of it as a type of gold rush, with a number of different opportunities now available to those who are willing to take some risk. Of course, with any kind of new business opportunity comes the opportunity for investors to inject some fresh capital into the blossoming market.
Legalization thus far has led to two different outcomes in Washington and Colorado. The initiative passed by Washington state voters placed the task of regulation and setting up a legal market in the hands of the state’s Liquor Control Board, which has thus far done very little to get things moving. It is expected that the state’s first non-medical marijuana shop will open in Spokane by the beginning of July. The state’s inaction has yet to land it anything at all in tax revenues, while most people have continued to use the black market or medical cannabis dispensaries to secure product.
In Colorado, the state’s legalization efforts have proven to be a huge success, collecting more than $20 million in tax revenues as of May, according to the Huffington Post. The initiative passed in Colorado differed in a number of key ways from Washington’s, allowing a more free and unregulated to market to emerge on its own. The results speak for themselves, and as the revenue figures start to pile in, investors across the country are taking notice.
There are already several options for those interested in investing in cannabis on the market. Companies like Advanced Cannabis Solutions, Aventura Equities and Citadel EFT Inc. have all had their trading suspended by the Securities and Exchanges Commission, but it’s hard to imagine those suspensions will last forever. New companies are looking to jump into the fray all the time, but it’s possible many are biding their time and waiting to see what actions the feds take regarding legal marijuana businesses.
So what does it mean for the cannabis industry’s investing potential? Well, it looks like it’s time to be bullish on the emerging market, with plenty of time to still get in early. Read on for three big reasons to be bullish on cannabis.