Trends Mergers & Acquisitions


Why You Should Be Buying OTC Medical Marijuana Company Stocks

Read the full article at Huffington Post

Medical marijuana is a growing industry. It is not only the marijuana growers, dispensaries, and processors that are making a killing. This is an industry full of challenges and risks but is an investment with the potential for great reward.

Challenges arise when any company is looking to enter a new market and entering a highly-regulated industry proves to be even more of a challenge. However, a quick consideration helps one understand that even in the face of adversity, companies providing: insurance, financial services, tobacco, alcohol, pharmaceutical, and healthcare industries reveal that profits can be gained despite a harsh regulatory environment.

Investing in the medical marijuana industry involves a multitude of risks, and it is why many investors rarely consider having OTC medical marijuana company stocks in their portfolios. Many people believe that most of these companies are unethical or are incapable of generating profits.

Truth remains that while it was hard for medical marijuana businesses to turn a profit in the past, the landscape is now entirely different. What was once a limited income generating opportunity has become one of the quickest growing industries in recent times?

Regardless, the belief that one may have regarding the use of marijuana, one must never allow a golden opportunity such as investing in medical marijuana to pass by. Medical marijuana stocks have a huge profit potential.

In recent markets, Medical Marijuana stocks are appearing to be launching soon. This will result in a breakthrough. Later in this article we will discuss the seven reasons why medical marijuana company stocks can generate excellent returns for investors over the next few years.

Many investors have still to uncover to these reasons for this breakthrough. Your attention in this matter could pave a path for you to get in before the industry takes off and help you be ahead of the curve.

7 Reasons Why Should You Invest In OTC Medical Marijuana Stocks

1. Governmental Shift in Legalization

In 2016, it was believed that the United States Drug Enforcement Administration would reclassify marijuana as a Schedule II drug. Such a reclassification would make it legal in all the 50 US states with a prescription. However, the Obama administration shot down those efforts. Such a reclassification would have been a huge catalyst for OTC medical marijuana company stocks.

Despite marijuana not being reclassified, the use of marijuana for both medical and recreational use in the United States is growing and becoming more acceptable. The number of states legalizing marijuana for either recreational or medical use has been steadily rising since the year 2000.

Maine, Oregon, and California are the only three states that have fully legalized medical marijuana before 2000. However, in recent years over 20 states have legalized the use of medical marijuana. In fact, the number of states that have legalized the use of marijuana in some form has risen to 25.

In 2015, two states, Ohio and Pennsylvania joined the list of states legalizing medical marijuana. In 2016, several states voted on the legalization of marijuana and four states: Montana, Arkansas, North Dakota, and Florida passed medical marijuana measures.

The shift towards the legalization of medical marijuana means that the industry will only grow larger and so will the potential for good returns. Now is the time to invest in this lucrative industry as more states continue legalizing medical marijuana.

2. Increased Governmental Revenue

Governments all over the world thrive on tax revenue, and this is exactly what legal medical marijuana sales provide. If you want to understand what legalizing marijuana can do for revenues all you have to do is look at what happened in 2014 in Colorado and Washington.

Colorado and Washington legalized the use of marijuana and each collected over $70 million regarding tax revenues from the sale of marijuana products. This figure is about two times the revenue that Colorado generated from alcohol taxation. In 2016, Colorado generated over $150 million in marijuana tax on sales just over $1 billion.

It is estimated that the marijuana market in the United States could be easily worth over $30 billion annually by the year 2020. In comparison, the National Football League has an annual revenue of just $10 billion.

The potential for increased revenue means that the industry will only continue growing larger and this can only go in a positive reason for investors to buy in. Even though the regime has changed, it is highly unlikely that government will roll back the gains made in the medical marijuana industry given the revenue that is being generating.

3. Quickest Growing Industry

The marijuana industry is one that is growing rapidly. In 2015, the industry increased by about 17 percent to about $5.7 billion while in 2016 it grew by about 25 percent to about $6.4 billion. This means that legal marijuana is one of the fastest growing industries in the United States.

The ArcView/New Frontier report summary said that by 2020, legal market sales were forecast to be $21.8 billion

Investing in OTC medical marijuana stocks means that you are getting a slice of this massive, growing, and highly lucrative industry. Identifying and investing in the fastest growing industries has always proven to be a challenge for many investors. Now one can understand that legal marijuana is one of the fastest growing industries and now time to make the most of investments and get in ahead early on.

4. Widespread Use Of Medical Marijuana

Numerous research studies are being undertaken to consider the medical applications of marijuana besides its traditional use as a painkiller.

Per the findings of some research studies, marijuana can be used to treat a broad range of symptoms, illnesses and diseases including Post-Traumatic Stress Disorder (PTSD), schizophrenia, Type 2 diabetes, as well as some forms of cancer.

Many marijuana-derived drugs currently available in the market are already approved in such countries as Spain, Germany, and the United Kingdom. As more research is undertaken in the US, more marijuana-derived drugs could become approved by the Food and Drug Administration.

Over 25 US states currently allow for the use of marijuana for medical purposes. However, the FDA has not undertaken many peers reviewed research on the medical applications of marijuana. However, some nonprofits are pushing for the FDA to approve marijuana use for the treatment of PTSD.

The widespread use of medical marijuana is a very powerful reason for investing in OTC medical marijuana company stocks. Medical marijuana companies will only become more profitable as the industry grows and this is good news for you as an investor.

5. The Growth In Investment Options

There are many Over The Counter (OTC) medical marijuana stocks meaning that you have plenty to choose from. As the growth in the legal marijuana industry continues, you can expect more marijuana companies will start going public. Most of these stocks are currently penny stocks that currently trade for less than $5 meaning that you can get involved in the market even if you don’t have a lot of money to invest.

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6. Banks Will Start Servicing The Industry

In 2016, the United States Senate approved an addition to a bill that makes it easier for banks to offer services to legal marijuana businesses. Now, marijuana companies operate only in cash since many banks are afraid to do business with them. The new measures would have meant that financial institutions would no longer be afraid to open accounts for businesses that comply with the law.

While the measures did not make it into law, the continued push by legislators to have the marijuana industry recognized as a genuine business will eventually bear fruit especially considering that over 60 percent of the United States population currently lives in an area where marijuana use is legal.

Once the financial institutions start servicing the industry, you can be sure that it will grow exponentially. However, before this happens, one should strongly consider getting into the industry while the prices of the medical marijuana company stocks are still low. This in turn will allow one to maximize returns once the banks start servicing the industry.

7. The Growth In Subsectors

When most people think of the marijuana industry, in general, they think that it solely sells marijuana either for medical or recreational use. However, this is far from true. Some people grow marijuana for various users while some make apps for both users and sellers. Others even sell equipment and tools used in growing and cultivating marijuana.

The biotech space is one of the sectors that will enjoy the most benefit with the increased federal legalization of marijuana use. While the existing laws make it hard to do marijuana research, the continued legalization can allow biotech companies to do research without fearing any legal consequences.

Jon Doukas Managing Partner at Trends Merger & Acquisitions, an M & A firm that has to date brought seven cannabis companies public, states that:

“Medical cannabis or more specifically cannabinoid based clinical research represents one of last remaining frontiers in pharmaceutical development. Studies have shown that modulating the endocannabinoid system may have therapeutic potential in almost all diseases affecting humans, including obesity, metabolic syndrome, diabetes, neurodegenerative, inflammatory, cardiovascular, liver gastrointestinal, skin diseases, pain, psychiatric disorders, cancer and more. And that’s just the tip of the iceberg, there are more than 400 pharmaceutically active ingredients that are produced in varying strains of the plant”.

Jon continues by saying; “These medical cannabis companies doing research in cannabis derived compounds will invariably become the future of new and exciting pharmaceutical products or become take-out candidates by “Big Pharma” seeking a foothold in the space”.

Cross between production and manufacturing

The Manufacturing space is split between 2 areas. THC production and No THC Production. While many believe THC CBD combo is needed, there is a big industry within the CBD with zero THC. CosPro Labs is a CBD Manufacturing facility that has seen growth ten-fold in 2016. CTO & Owner of Hemp Genix and CosPro Labs Marc Normandeau said, “While states are legalizing medical and recreational marijuana, many states still have not. Those states that have medical and recreation still do not have laws around employment and drug testing. People are still afraid to have TCH in their system. There is also enough science backing CBD alone for health benefits. People continue to seek out CBD Oil products with Zero THC. Manufacturing products within the law makes a separation of what a manufacturer focuses on if and until their state legalizes for medical or recreation. However, because of the federal level of marijuana legalities exist and there are still too many laws and concerns especially around cross boarder commerce and production.”

The vastness of the marijuana industry gives investors a wide variety of options in regards to where to investors feel their money is most profitable. Since the marijuana industry dips in all kinds of sectors, it has plenty of room for growth in the future.

Companies to keep an eye on for 2017 and beyond

Freedom leaf Inc. (OTC FRLF) current trade at 0.1001 (at close January 20,2017 3:59PM EST)

Terra Tech Corp (OTC: TRTC) current trade at 0.321 (at close January 20,2017 3:59PM EST)

Creative Edge Nutrition, Inc (OTC: FITX) current trade at 0.0025 (at close January 20,2017 3:59PM EST)

Final Thoughts

Marijuana use has been legalized in over half of the US states. It is highly likely that this trend will continue moving forward. The use of marijuana for medical purposes has been the greatest driving force towards the increased push towards legalization of marijuana in the United States and even other parts of the world.

The marijuana industry, in general, is massive, and the medical marijuana industry is a large portion of this industry. If you would like to enjoy a slice of this lucrative industry, you should consider investing in OTC medical marijuana company stocks for the seven reasons discussed here.