Now could be a better time than ever to begin investing in the cannabis industry. The industry saw a significant increase in both popularity and investment in 2016, and many investors believe that 2017 is shaping up to be even more lucrative for the budding legal marijuana industry.
According to Forbes, during 2016 over $1 billion was raised in the marijuana industry nationwide.
The billion-dollar mark was crossed just as 2016 came to an end, with OrganiGram Holdings, Inc. raising $29.8 million. That deal allowed for an expansion of the organization’s cultivation, extract, and derivative activities, but it was just one such deal from the past year.
Many U.S. investors are looking to Canada’s cannabis industry as a benchmark for what the U.S. market will become.
So far, 23 states and the District of Columbia allow cannabis to be used for medicinal purposes. Nationwide acceptance has also rapidly increased over the last few years, and it looks like that trend is going to continue.
“Since the election cycle, the deal flow has mostly been in the real estate sector and principally in California and Massachusetts,” said Scott Greiper, founding partner and president of Viridian. “We have not seen a slow down in deal flow since [attorney general nominee] Sessions name came up and we have not seen a slow down in investing.”
Investing News reports that many industry leaders are curious to see how President-elect Donald Trump’s administration will handle the cannabis market, but they remain optimistic after such a successful 2016. Trump did campaign on a law and order platform, but he has also been unpredictable on social issues.
“I am glad to see the cannabis market look like it will finish positively for the first time since 2013,” said Alan Brochstein, a stock analyst. Although, “the Trump election and the uncertainty it brings regarding federal cannabis policy was certainly not expected.”
Here’s what we do know: Canada and the U.S. saw significant increases in the cannabis industry and, as of right now, there is no reason why 2017 should not be as profitable, if not more so, than last year.
If you want to contact an experienced cannabis consulting company to learn more about investing in the cannabis industry or acquiring a cannabis business license application, contact Canna Advisors today.