Cannabis Investment Basics: How to Invest in Marijuana Stocks

Cannabis Industry Financials

The onset of euphoric “high” effect by such edibles takes one to two hours, but the effect lasts longer than that resulting from inhaling smoke or vapor. Nonetheless, product innovation and packaging-related modifications are expected to play a pivotal role in boosting the sales sentiments of edibles and are projected to grow at the fastest rate during the forecast period. Unsurprisingly, the shortage of banks willing to lend to the cannabis industry has made it extremely difficult for borrowers to access desperately needed capital.

Consumer Products & Retail

The stock jumped 37% in 48 hours following the positive regulatory news from the Department of Health and Human Services around regulatory recommendations on the industry. However, it is still down about 15% over the past year, which is better than most of its peers. Despite the drawdown, GTBIF is the second best performing stock on this list in the cannabis accounting same time period. Companies leading in the global cannabis market, such as Aphria, Medmen, Jazz Pharmaceuticals Inc., Aurora Cannabis Inc., and Canopy Growth Corp, have created efficient alliances and product launch plans to grow their market reach and client base. Candies, chocolates, and beverages remain popular hemp-based edibles in the market.

A Year In Review For The Cannabis Industry

The larger the market cap, the better the chance that the company will have the financial stability to survive over the long haul. The new year brings new states opening up to recreational or medical cannabis sales, as well as newer or altered regulations in existing markets. Cannabis firms must keep an eye on these new markets and regulations to best determine whether they plan to expand or not. Investors continued to pour money into the burgeoning industry — surpassing 2018 investment totals in just 40 weeks — and new markets opened up for recreational and medical cannabis. And following the passage of the 2018 Farm Bill, CBD has proliferated and become one of the hottest health supplements in the country.

Visible Alpha’s Standardized Industry Metrics

Cannabis Industry Financials

In California and Florida, mainstream doctors have successfully used the product to treat AIDS, anorexia, arthritis, and cancer. The ongoing research and clinical trials for several marijuana-based medications are expected to fuel the market growth over the forthcoming years. This means cannabis businesses must carefully plan and watch their cashflow and pursue fresh capital or investment earlier rather than later. Flowhub is the leading cannabis software company providing compliance, point of sale (POS), payments, inventory management, analytics, and easy integrations.

  • High state and local taxes have been a challenge industrywide because they make legal operators less competitive with the illicit market.
  • Keep track of the publicly-traded cannabis market by watching the NCV Indices, which includes the Global Cannabis Stock Index since 2013, the American Cannabis Operator Index, the Ancillary Cannabis Index, and the Canadian Cannabis LP Index.
  • Fincann’s merchant processing services are fully compliant and transparent alternatives to the cashless ATM workaround that’s been halted by most card and ATM networks.
  • The IRS defines a cash-intensive business as one that receives most of its revenues in cash and/or pays many of its expenses in cash (Internal Revenue Service 2010).
  • The stringent Section 280E remains imposed on larger-scale cannabis commerce to financially deter businesses from entering expansive trafficking operations.

North America Dominates the Market

As of June 30, 2022, the Company has access to US$713.7 million under the 2021 Shelf Prospectus, including the balance of US$186.2 million pursuant to the ATM Program. At management’s discretion, Aurora may sell shares under the ATM Program from time to time to be utilized for strategic purposes. 2021 displayed the rise of Cannabis Tech with companies like Dutchie, Leafly, and many others. CNBC signaled that technology is indeed driving the cannabis industry’s biggest growth opportunities. Dutchie is illustrative of this fact, as it was able to raise $350M in 2021 to double its valuation to $3.75B in less than one year. New York-based, Viridian Capital Advisors counted 306 M&A transactions through December 17, 2021, up well over threefold from the 86 recorded for the same period of 2020.

Cannabis Industry Financials

Statista also projects the cannabis market to reach over $67 billion in revenue by 2028 as the legalization movement surrounding cannabis evolves. Marijuana regulations, laws, sentiment, technology and business practices evolve each year—meaning there’s a long list of new data and insights to unpack. He then taught several international travel courses concerning the emergence of the global cannabis industry.

Financial Services & Investing

Cannabis Industry Financials

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