If you take a glance at the markets for marijuana and related industries, prices have seen a rebound where many “played out” stocks have received a breath of fresh air…along with their long-term investors. Many are even calling this the rebirth of pot stocks as a whole and for new companies coming into the space, this along with tighter regulations to protect investors could be significant catalysts for the market to continue to grow, literally.
But the fact of the matter still remains that without the actual plant itself, users, retailers, and alchemists would have nothing. Today’s economic boom within legal marijuana has ignited a firestorm of interest from some of the most unlikely proponents of marijuana’s success. Biologists and engineers have experimented with digital sensors, lighting arrays, software programs and ventilators to self-contained systems with the lowest energy costs and highest crop yields.
Being that marijuana needs a precise balance of light, moisture and water to thrive it is a very finicky crop but new technologies outside of the typical outdoor grow or even traditional green house grow have begun to come about. As the U.S. and more countries ease up their policies on both medical and recreational marijuana, the race is on by companies working to become the industry leaders in data-mining software, lamps with efficiency accessories and adequate irrigation systems.
These tools will ultimately benefit more than marijuana growers alone. We’re talking things like industrial food producers and even the hemp growers could adapt the same technologies to cut energy costs and boost their yields. Operators of large buildings could use the systems to lower their electricity use as well. By compartmentalizing these units, growers have been able to streamline operations, magnify growing conditions and yield more consistent crops multiple times throughout the year.
“Cannabis is spurring on an ag-tech revolution. This is a boom born entirely out of ending repressive laws. The market is already there, it’s just moving from the shadows into the light. That’s why you’re seeing this incredible growth and why so many people see it as a once-in-a-lifetime [business] opportunity.”
-Troy Dayton, CEO of ArcView Group.
Technology advancements in the marijuana industry focus mainly on interior cooling, air circulation, and lighting, which together take up about 70% of the overall cost to actually grow a single gram of weed; this is according to some projections. Using water more efficiently, take up less stress on the electrical grid while providing greater yields is a very realistic advantage of these more controlled “grow box” style units. Others are even being designed to automate the real-time response to changes in variables like moisture, sunlight and temperature, in order for the cannabis to grow in an optimal environment. Technologies also collect a wealth of data, which gives growers an upper hand when it comes to adjusting their growing environments to find the best conditions for multiple varieties.
Timing may not be any better than right now to start digging into this industry. The space is drawing interest from the mainstream believe it or not. A subsidiary of Scotts Miracle-Gro Co., Hawthorne Gardening Co. in April, purchased General Hydroponics Inc. and Bio-Organic Solutions Inc. They make liquid nutrients for indoor marijuana cultivation and this is just one example of the types of investments these “blue chip” companies are making in order to get a foot in the door when it comes to the new kinds of growing environments being created.
No longer are harvests limited to a few times a year. These grow boxes can produce several FULL harvests per year and when it comes to out put meeting demand this is one of the most important aspects of a successful grow. Furthermore, with the industry attracting a new breed of entrepreneurs who may have never even touched marijuana before, grow box manufacturers also need to consider ease of use; Can it be “plug and play”?
U.S. cannabis sales alone reached $2.7 billion in 2014, a $1.1 billion gain over 2013. Now think about this for a moment, Colorado marijuana sales alone for the first 8 months of 2015 totaled nearly $700M (almost 30% of the total U.S. sales for 2014 and remember…that’s just Colorado). The market continues to grow and so has the increasing demand for a consistent, quality product that as of recent has been found to be a byproduct of indoor grow box cultivation methods. It would stand to reason that just like the picks and shovels of the gold rush, these lights, water units, and especially the cultivation boxes will become an industry all their own.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
