• Companies that support the market may also do well
    • Fertilizer
    • Indoor growing & lighting systems
Cannabis Facts
  • Cannibas has two primary compounds of interest (amongst hundreds of cannabinoids)
    • THC
      • Psychoative Componenet
      • what gives people a "high
      • THC = Tetrahydrocannabinol
    • CBD
      • Medicinal Benefits
      • Therapeutic Properties
      • No Intoxicating Effects
      • CBD  = Cannabidiol
      • Not addictive
  • The Cannabis plant contains over 100 different cannabinoids
    • Cannabinoids are chemical compounds that react with human cannabinoid receptors (immune and nervous system receptors)
  • There are many strains of cannabis (like wine)
    • Some are cheaper and some are more expensive
    • Some are speciality strains and can are rare
  • There are many use cases:
    • Medical
      • Used since ancient times  (2700BC China)
      • Modern Pharmaceutical companies are making drugs based on CBD componenets
    • Recreational
    • Industrial
    • Therapueutic

Canadian Head Start
  • Canadian companies are getting a head start over US companies (2018)
    • It is legal for them to grow and sell at a federal level in Canada (vs. illegal in the US)
    • They are gaining a foothold before US companies (like they did with Alcohol during prohibition)
  • Market is expected to increase 10x after legalization
  • Canadian companies also export the product to other countries



Cannabis Legalization Growth Boom
  • Gradual Legalization of Cannabis in the US, Canada and Europe has lead to a growth boom in the late 2010s
  • Fastest growing group of users in the US is senior citizens
  • Created mad rush to build numerous businesses:
    • Companies that grow cannabis
    • Companies that market branded cannabis products
    • Cannabis infused foods
    • Cannabis infused drinks
    • Cannabis retail stores
    • Medical-related cannabis products



Potential Medical Applications for Cannabis
  • Chronic Pain
  • Nervous Disorders
  • Nausea
  • Weight Loss
  • Mental Illness


United States Legality

  • In 1600s Hemp was an industrial crop
  • In 1700s it was starting to be used medicinally
  • In 1800s it was added to a list of pharmaceuticals (help with vomiting & opioid withdrawl(
  • In 1900s it started to be used recreationally
  • In 1925 states started to outlaw it
  • In 1970 it was listed as a schedule 1 Drug
    • High abuse potential
    • No known medical use
    • No safe dosage
  • In 2000s the states are starting to legalize, but the Federal government still outlaws it
    • states see the benefit from a tax and growth perspective
    • this creates problems with having it go across state lines - has to be grown & sold in-state
    • federal banks won't touch money (it's an all cash business)
    • no patents/trademarks/contracts are enforceable
    • no expenses are tax deductive (you can't deduct things the fed deems illegal)
  • The FDA requested that the DEA remove CBD from any classification under the Controlled Substances Act (2018)
    • The DEA left CBD as a Schedule 1 Drug
  • Problems With Legalization
    • There is not a great way to test is someone (drivers) is under the influence
    • Federal Criminalization has hindered formal research studies - makes it hard for doctors to prescribe
    • Alcohol sales will drop (substitution effect)
  • Benefits of Legalization
    • The illicit/illegal market (and associated crime) is dropping