Cannabis - Industry

The Cannabis Industry includes legal operations concerning marijuana and hemp, With the sector divided in four sectors: recreational marijuana, medical marijuana, CBD oil, and hemp. As the cannabis sales substantially increased and massively expanded as more countries legalize it, CBD is being added to products across the retail spectrum from food to make-up, but with little legal oversight or requirements, the products can easily be mislabeled or ineffective. With more countries expected to legalize marijuana in the coming years, Marijuana industry experts estimate that the nation’s medical and recreational marijuana market is currently valued at $8.3 billion, and project that it will surge to $25 billion by 2025.

  • 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

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