The cannabis industry is one of the fast-growing industries in the world today. There are much excitement and hype around the cannabis industry that has attracted the imagination of several people. There has been a lot of commentary regarding the prospect of this fast-growing segment and some see it as an exceptional opportunity to make some cash.
Cannabis industry riding legalization of pot
However, in recent months the cannabis market has had a torrid time following regulatory uncertainties. Canada is leading in the cannabis sector and after legalizing recreational cannabis last year they have equally legalized cannabis derivatives. The legalization of cannabis derivatives such as cannabis-infused drinks, edibles, vapes, and concentrates presents a huge opportunity for cannabis companies.
Source: Statista
The past two years have been merry for cannabis companies but in recent times growth has slowed as dynamics change. Investors will now be looking for clarity regarding the long-term prospects of the cannabis industry.
Cannabis companies to overcome regulatory challenges
The outlook for the cannabis industry, for now, looks bleak and will clear once the companies begin to post consistent financial results. Most of the cannabis companies are yet to turn a profit despite the massive hype and huge prospects they present. There is also the issue of regulatory compliance and regarding cannabis products.
Most investors may be watching from the sidelines waiting for the opportune time to bounce in. Among the things they will be looking at is the governance of the cannabis companies because leadership can make a difference regarding the company navigating short term growth and registering long-term value.
Chemistree expanding operations in the US
Cannabis companies have been expanding their operations aggressively in recent months as they look to establish themselves in the industry. One Canadian name that has been busy is the cannabis investment company Chemistree Technology Inc. (OTCMKTS:CHMJF).
Chemistree has been expanding its operations in the US as it looks to become a leader in the sector. The company’s main asset is the Sugarleaf brand which is a premium flower product line based in Washington. The company purchased the brand last year for $1.3 million and has increased cultivation by over 200% as well as retail distribution by close to 400%. Sugarleaf has reached a revenue target of $1.2 million this year.
Besides Washington, the company has also expanded operations to California and New Jersey. Recently it acquired Applied Cannabis Sciences which will give it a foothold in New Jersey. The company is racking up assets in the US as it anticipates the federal legalization of marijuana. Most people are currently drumming up for federal legalization of pot and already most states have passed a law on the same.
The cannabis industry is full of potential and going forward it will continue to grow. Analysts estimate that by 2023 the market will be worth $23 billion. There is strong investment growth in the cannabis sector and as the market mature more investors are likely to buy-in. Cannabis stocks will also continue stabilizing as more assets flow into the cannabis industry.
