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