As more states and countries legalise cannabis – fuelled by greater acceptance from the public – there’s reason to believe that the cannabis industry's prospects for continued growth look good. In fact, research suggests that the US legal cannabis industry could be worth as much as $75 billion by 2030. With forecasts like these, it’s no wonder that savvy traders have been flocking to the market, eager to capitalise on the latest cannabis industry.
Despite a massive slowdown in cannabis funding and stock price growth, with many of the largest players in the space largely under-performing the wider market, investing remains hot. In the last two years, the marijuana industry has seen more than $26 billion in funding deals and M&A.
States across the nation continue to relax their marijuana restrictions, however universal legalization remains in the distance. Marijuana remains a Schedule I controlled substance at the federal level, which creates some interesting conflicts with local governments. Possessing marijuana might not be a legal violation at the state level in places like Colorado and California, but it’s still technically a federal offense. While DEA enforcement is pretty much non-existent, businesses involved with production and distribution still have to walk a legal tightrope. Since pot is still illegal federally, a property owner can kick a marijuana business operator out of their lease with no cause other than the presence of marijuana, even if laws have been relaxed at the state level.