Right now, the cannabis space is pretty messy.
It is still in its infancy, and for the most part, the only people making money are the attorneys.
California will soon legalize it for recreational use on January 1st. For Canada, their big full legalization date comes in July.
These two combined populations have over 75 million people!
For the U.S., we already have 29 states and three territories with some form of cannabis legalization. This accounts for 60% of the population.
As a whole, the marijuana business posted a revenue of $6.7 billion for the U.S. in 2016, up 30% from 2015.
When I was in Las Vegas a few weeks ago, every cab and Uber driver I spoke with told me the same thing: the marijuana shops were booming. In fact, on one trip, I drove past two of them that still had lines wrapped around the building!
In my opinion, Nevada is a small sample of what will happen when California and Canada begin recreational sales.
Dispensaries in Nevada sold $27 million worth of recreational cannabis during their first month of sales in July.
That’s double what Colorado did, and seven times what Washington state posted during their first month launches.
Last year, Colorado topped $1.3 billion in total marijuana sales!
That’s over $100 million per month in sales for a state with only 5.5 million people.
That’s incredible. Now consider California and Canada – 75 million people will soon have legal access.
The U.S. Department of the Treasury has already issued FinCEN guidance to banks, advising them on how to work with cannabis businesses.
The sector is creating jobs and much needed tax revenues.
In my opinion, this trend is unstoppable.
I’ve personally tried cannabis a few times, mostly through the edibles, and in my opinion, it’s the same thing as alcohol. The difference is that instead of having to drink almost a full bottle of wine to feel a buzz, you can just take a small gummy and sip on some ice water. Or you can still do the wine and just enjoy a nice, relaxing morning… Just kidding, a nice relaxing evening.
One final note: A federal lawsuit with several children as plaintiffs is making its way through the federal courts right now. It has to do with people who use cannabis for medical reasons not being able to take their medication over state lines.
One of the plaintiff’s stories is very moving. Her name is Alexis Bortell, and if you have time, read the story by clicking here.
The cannabis has helped her go two years without a seizure. Prior to moving to Colorado, where it’s legal, she lived in Texas, where she was forced to use prescription drugs and the most she could go without a seizure was 3 days!
Look for new investment ideas in the space from us soon.