There are many different things you can invest your money in, and, surprisingly, marijuana is also on the list. Moreover, with the legalization movement gaining momentum across the U.S., cannabis industry appears to be one of the most promising and profitable investments. So, how to invest in marijuana, what are the risks and possible profits? WeedLex will tell you what are the real benefits of investing your money in the cannabis stocks.
Working with marijuana is not illegal or shameful these days. In the U.S., the number of states with legalized marijuana is growing year by year. And although the plant remains prohibited at the federal level, investing in the local marijuana industry is a great opportunity to turn some profit in the states with legalized weed.
Furthermore, the U.S. is not the only country in the world where you can legally invest your money in cannabis business. In Uruguay, both medical and recreational marijuana are currently legal, so you can invest in nearly anything related to the industry: from marijuana-growing facilities to big pharmaceutical companies. Canada is also a good choice for those who can see the real financial potential of the marijuana industry. Medical marijuana became legal in Canada over five years ago; it seems that recreational weed legalization is only a matter of time now. Some European countries also have a lot of investment opportunities to offer.
Only a few months ago, it was pretty much impossible for most marijuana companies to use the banking system officially because of the weed prohibition on the federal level. Therefore, marijuana companies across the U.S. were operating in cash only. But in June, the U.S. Senate Appropriations Committee made the first step to making it easier for American banks to provide their services to legal weed businesses. If the Senate and the House pass the bill, and then the President signs it, American financial institutions will have no more reasons to deny legal marijuana companies access to the banking services every other business uses.
One of the biggest misconceptions about marijuana business is that all that a marijuana company does is selling weed. The reality is that you can run a legal marijuana-related business without being involved in selling buds or marijuana-infused products. Some companies are focused on growing cannabis and hemp, while the others sell paraphernalia or, say, develop special mobile apps and services for marijuana users. There are also a lot of pharmaceutical companies that provide marijuana-based medications. So, if you do not know how to invest in medical cannabis, you need to consider putting your money in one of these pharmaceutical startups.
Due to the current marijuana status, all these private companies become public by doing a reverse merger instead of IPO. For some investors, this could be a solid reason not to invest any money in the stock. However, if investing in an IPO is not your highest priority, you can put your money in one of these businesses.
Currently, there are dozens of publicly traded marijuana companies out there, so you have plenty of cannabis stocks to choose from. Most of these companies are the so-called penny stocks that trade at pretty low prices per share, like $5 per share or even lower. So, even a novice investor will easily find some interesting and affordable offers.