The world of cannabis has remained extremely lucrative over the course of the past few years or so, but new developments continue to hit the industry on a regular basis, allowing for a steady amount of growth that looks to only continue moving forward.
One of the most promising aspects of the market is the prospect of the international industry on cannabis. Jamaica has been working to secure a large marijuana industry throughout the nation that could help to potentially fuel other markets as well. The country is working to convert a large amount of idle land into land that is suitable for growing cannabis. This could mean that companies in Canada could be growing cannabis in Jamaica for export around the world in the near future.
The company Canopy Growth (NYSE: CGC), has been working to secure a $500 million convertible debt. This shows that the industry is continuing to mature as numbers like this are not just thrown out there all the time. Canopy Growth has been one of the main players in the Canadian cannabis market for some time now, working to continue growing hundreds of thousands of kilograms of cannabis per year. The lending in the hundreds of millions mentioned prior could mean that banks are now starting to get involved into an industry that they otherwise would not touch.
This has been one of the main issues for some time now as to how banks can get involved in what is becoming a multi-billion dollar industry. Given that in the U.S. cannabis is still considered federally illegal, and in Canada, most banks won’t touch companies that deal in this sector, having the option to use traditional banking services would greatly improve the market. More debt deals are hopefully to come as the industry continues to mature throughout the next few years.
The beginning of the year also represented a very topsy turvy graph in terms of growth in the market, but this seems to have stabilized at least slightly. The beginning of the year was plagued with a large amount of issues surrounding the legislation of cannabis in the U.S. and in Canada. The U.S. saw the federal government slightly ease their policies on controlling the individual state markets which has helped to bring the industry back over the course of the past few months. In Canada, the passing of the bill known as C-45, has helped to bring investors into the market that are more confident with the industry than ever before. The legality of the substance throughout the world seems to be one of the largest challenges to growth throughout the market. In order for the industry to grow to its full potential or at least somewhat of that, the laws need to change in favor of the cannabis market.
The population of the U.S. has shown an overwhelming amount of support for the cannabis industry which means that legislation could be on the way that would effectively change the market completely. The hopes are high that over the course of the next few years, new laws will be put in place that will allow companies to grow. The influx of large capital has been helping with this issue, but as stated before, the laws need to change. Only time will tell how the new businesses in the market will continue to operate amongst stringent regulation put in place by the U.S. government. For now, the Canadian market seems to continue being a great example for how a large cannabis market can operate.
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