It is a civic and philosophical question.
We see huge companies operating in the medical field (Tilray, Canopy, Aurora etc).
With huge losses.
My question in the states with legal cannabis regulation.
These people don’t sell there, right?
They have big investments on role and big liquid cash to spend but the market is not so big.
I undertand to ways.
One those guys get rich by stock market and sell their actions like cannada young boys did.
or they are crazy and the market regulates and they loose billions for 5-10 years and they are the ones.
But as im trying to understand the world is looking to regulate like Cannada or USA(some states).
And the best product is still coming from small farmers(dispensary)
Canada was the first to federally legalize. That allowed some players to get access to public markets and plentiful and cheap capital. The actual size of the Canada market is fairly small so these players are buying up U.S entities and their Canada operations will likely end up smaller or even non-existent in the long term. They are essentially holding companies for U.S operators.
In this case Canada is the Wall street and America is the actual market where the good get sold to and profits are made
I’ll try my best to interpret what you wrote… no - LPs cannot directly own or operate THC businesses in the US. However, they do own equity in and give debt to some US operators. Less than you’d think.
You also have to discern between the public cannabis companies whose main product is cannabis, and those whose main product is their stock. Unfortunately you can make more in the short-medium term if you focus on the latter.
Consolidation in the US will increase, mostly by the work of MSOs (not LPs). Nobody wants to take stock from Aphria, Aurora, Canopy, etc anymore for an acquisition.
Enter with the intention of eventually being the acquirer, so you’re much more likely to build something worthy of being bought out in the first place.
Was just kidding man, although it has legitimate medicinal potential, especially for those who do not have legal access to THC, and I’m not going to get into another legality debate, the department of agriculture of state I live in has given the green light on D8 as they follow federal laws, not DEA opinion- which contains no mention of D8.
My question is those big companies of cannabis already in stock trying to sell their big future with medicinal cannabis in EU like idiots on NASDAQ and so on.
But i don’t understand on those states where cannabis is legal and dispensaries are all over the way
with all the cash behind they are not in that REAL REAL AS REALITY market.
Medical cannabis companies are basically a long term play. Companies with enough capital will use the “medical only” approach to get early access to states/communities that are very opposed to retail cannabis. They will even go as far as to publicly say they don’t ever plan on going retail and only “care about the patients.” This is a bunch of shenanigans to get their foot in the door with local government so they can spend time trying to convince them how much tax revenue and jobs they can bring to their town if granted a retail license.
They’re not setting up shop to make money. They’re setting up shop to get first dibs on a retail recreational license and influence policies. A lot of these companies will quietly lobby to outlaw home growing and push for tighter regulations on illicit sales of the “tainted” black market marijuana “on the streets.” They also will push for zoning laws to prohibit future competitors from setting up shop within X amount of miles of them. They push to influence regulations to increase the barrier for entry for new, undercapitalized competitors. They come in under the disarming appearance of a holistic compassionate medical facility but really they’re just trying to stay afloat until the real money flows in from out-of-state/recreational sales.
Medical marijuana programs are basically seen as a Trojan horse for corporate cannabis and their investors. They know they’re going to bleed out financially for the first however many years but they’re in it for the long term returns. Then once the market becomes saturated with competition they restructure and move on to the next fledgling market. The investors make back the years of stagnant sales/losses within months of rec sales. Look at all the first companies to get recreational licenses in legal states and they did they same song and dance.
While I appreciate your point and do agree that many of the large MSOs do this, I don’t agree to characterize all med companies this way because, well, I know at least one that isn’t operating with the intention of only getting a head start. Sure, if rec happens in our jurisdiction then we will participate, but our focus will always be medical. The fact that other companies intend to shift their production away from the products that some people are legitimately dependent on is extremely immoral but also leaves a substantial market sector of frankly less price sensitive customers unserved.
That’s good to hear, as the most mature US markets essentially don’t have MED programs anymore. In the Mid-Atlantic region of limited license states I know one licensee that intends on maintaining a medical focus - ardently watching their studies.
you mean people care about that these days?