The global market for cannabis is growing quite rapidly. The market for legal cannabis is projected to reach over $23 billion and provide jobs for almost 500,000 Americans by the year 2022. From now until then, that is an annual growth rate of 27%.
This rate of growth is very impressive and as a result, many investors are scrambling to invest in cannabis stocks that are publicly traded. So, what is the best method to do so? Consider the following:
Understand the Two Main Forms of Cannabis Products
Primarily, there are two categories of products related to cannabis.
The first category is medical marijuana. This is available legally in 30 states currently. Other countries like Germany and Canada have made it legal, as well. To obtain medical marijuana, an individual must provide a prescription from an authorized healthcare professional. Often it is prescribed for pain, depression, stress, or anxiety.
Medical marijuana (medical cannabis) can be inhaled by “vaping” the concentrates or smoking the dried flower. A person can also ingest it by eating edible products containing cannabis or by drinking beverages infused with it. The market has evolved to a point where people may acquire lotions and topical creams that contain cannabis or its chemical ingredients.
A widely used medical marijuana product is CBD (cannabidiol), which is one of several chemical compounds in the actual cannabis plant. Referred to as a cannabinoid, it does not have any of the properties that would affect the mind, unlike other cannabinoids.
The possible health benefits of CBD are so promising, the FDA approved Epidiolex, the first drug with CBD as the key ingredient. Epidiolex will be used to treat two uncommon types of epilepsy.
Additionally, the Food and Drug Administration approved three drugs with THC as the main ingredient — Cesamet, Marinol, and Syndros. They will be used to treat some of the adverse side effects of chemotherapy like vomiting and nausea. Unlike CBD, these three drugs will be created using an artificial form of THC instead of the actual compounds found in cannabis plants.
The second category of products related to cannabis is recreational marijuana. It is now legal for adults to use it in the District of Columbia and nine states in the U.S. The country of Uruguay legalized cannabis country-wide back in 2013. In Canada, Parliament took a vote to make recreational marijuana legal. The vote passed in October of 2018.
As one can imagine, the popularity of cannabis is due to the psychoactive properties of THC. Though many people still smoke the cannabis flower, eating edibles and vaping concentrates are growing in popularity.
Business Law Attorneys in Santa Monica
At Verhagen Bennett LLP, we are committed to serving our clients with enthusiasm and excellence. Contemporary law, even in the newly formed cannabis sector, has become confusing and complicated to navigate. We can be your guide when you are facing matters that require experienced counsel and advice.
If you have a startup or are considering investing in the cannabis industry, call us at (310) 917-1064, schedule an appointment, or email us at email@example.com to learn how we can assist you with any legal concerns you may have.
(image courtesy of Chase Fade)
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© 2018 Verhagen Bennett LLP — This article is for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.