In the majority of the cannabis industry, around 50% of the companies that are currently generating a profit, are expecting to raise capital or actively in the attempt of doing so right now, according to data released in the Marijuana Business Facebook 2017.
The reasons that businesses look for capital vary substantially from business to business and sector to sector. The markets they are in can affect and drive the hopeful return on the investment. After launching, many companies will need additional cash flow to help execute plans and sustain their daily operations.
In the State of Hawaii, the majority of the eight licensed medical marijuana dispensaries are ready to do business and start operations but have yet to begin due to the Department of Health having to approve testing labs.
The delay on the Dept. causes a large financial issue for the companies as they still remain on the hook to pay all their expenses even though they cannot move forward and begin to sell the product.
In the state of Nevada, cannabis businesses that are allotted additional investments, and used the funds to increase and expand their production capacity, as the demand for the product continuously rises and has continued to beat expectations since the launch of the program on July 1st.
All of the sectors face various challenges in order to put into play the opportunities they have at this time.
Some businesses such as testing labs have unique needs which include capital-intensive business models. Those businesses require highly skilled workers to perform specialized tasks while testing using complex equipment. The financial investment will always be heavy, because of the skill level needed, as well as the facilities involved.
In the various sectors of the cannabis industry, different companies require different needs. Investments have been decent thus far, but companies are desperate to find more and more investors so they can continue to grow their businesses.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
