The cannabis market has managed to remain incredibly lucrative over the course of the past several years, but with the advent of legalization and the changing public sentiment, it seems as though the market may just be getting started.
As far as the federal government is concerned, marijuana is still scheduled as a Schedule I narcotic, meaning that it has no potential for medicinal use as well as a high rate of addiction. Both of these claims have been widely refuted throughout the past several years by various medical professionals and scientific journals, thus the need for new laws and regulations.
According to one report “The cannabis plant produces more than 100 compounds (called cannabinoids), though most people know about just one. THC, short for tetrahydrocannabinol, is the psychoactive component that gets the user high. That is the drug that launched a counter-culture and the government campaign against it. It is also the recreational component.” A large amount of research is currently being conducted on one of the most important chemicals within the plant, CBD. CBD or cannabidiol has been hailed as having more potential to treat diseases than most other drugs currently on the market. CBD is also a non-psychoactive component of the plant, which in other words means that it does not get the user high. This is especially helpful in cases dealing with children, as the more mild the drug, the better.
Both of these compounds work individually, but they do have more of an effect when working with one another. Scientists have been working on creating a new series of drugs using the chemical CBD. In recent news, a new drug using components from the cannabis plant is scheduled to be voted on by the Food and Drug Administration in the U.S. to determine whether or not it should be allowed. The FDA has shown a considerable amount of positivity in terms of this new drug given how much potential it has shown to treat seizures in young children caused by a variety of illnesses. The drug is known as Epidiolex and is scheduled to be reviewed sometime in the near future.
Todd Harrison, founder, and CIO of CB1 Capital, a company that works within the marijuana industry stated recently that “legal weed, as some call it, has the wrong connotation. Tomorrow’s cannabis consumer won’t just smoke it; they’ll drink it, eat it, rub it on, take it as a pill, or wear it as a patch. They’ll take bubble baths in it.” This may at first sound like an exaggeration, but more and more companies have been working to come out with new solutions to using cannabis in the simplest ways. These new products have been working to shape the new industry, including new tech start-ups devoted to making the use of cannabis as easy as possible.
Many individuals have stated the similarities between the tech market and the weed market are quite uncanny. This has been the main reason that so many investors have been flocking to the cannabis industry. The amount of new companies being formed due to this changing legislation has helped to bring an influx of capital in the form of new investors into the space that otherwise would not have entered. As we move toward the coming years, one of the main things that needs to change continues to be that of the legislation across many parts of the world. The hopes are high that over the course of the next five or so years, the legislation will begin to accurately reflect the needs of the market.
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