Marijuana-Stocks-Nevada cannabis

Just a few weeks ago, Nevada began it recreational marijuana program and in those short weeks, they have already found that they are in a shortage of almost all products. Most of the major news outlets across the country have reported on this stating that the shortage of weed was caused by a distribution problem or inefficiencies in the production of the plant, but the real issue is a scarcity of weed within the state.

The developing story showed the revenue of weed within these first few weeks which is set at a whopping $3 million dollars following the first 4 days. With half a million of that money going to the state for taxes, experts estimate that by the end of the year, $30 million dollars will have been generated by the recreational industry alone.

The deduction from all the numbers leads to only one answer. The demand for marijuana in this country is incredibly high and is only getting higher (no pun intended). The need is also grossly underestimated.

This is a multi-billion dollar industry with a pre-existing demand that is currently facing a shortage. Leslie Bocskor, an investment banker and president of cannabis advisory firm Electrum Partners stated that “The very large black market will migrate very quickly to the regulated market. This is why MJBD’s fact books in the last few years show that nearly 70 to 80 percent of startup cannabis businesses reach break even within one year.”

With an industry that illegally is making $50 billion per year, compared to the entirety of the NFL which is making around $13 billion; there is huge potential for growth and equally large potential to create a shortage.

Bocskor stated that “This enormous black market grew based on customers who were and are willing to risk arrest, robbery, tainted products and more. As we migrate to a regulated market, new consumers who were not willing to risk life, liberty, robbery and other unknowns will come to the regulated market quickly.”


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