Friday, August 17, 2018

If corporations are providing billions to fledgling Cannabis companies now, imagine how much money will go into industry when it becomes legal for banks

The growing legalization of cannabis in states around the country is leading the U.S. to perhaps one day experience a revolution, and the potential for ground floor growth in an industry that will encompass agriculture, medicine, cuisine, and even alcoholic beverages just to name a few.

However because the Federal government has been apathetic in pushing forth full legalization, and most banks and venture capitalists have been extremely hesitant in providing capital to grow this industry in the U.S., nations like Canada are running away with cannabis expansion where even beer companies are willing to provide billions of dollars in capital to grab their share of the 'roadside weed'.

Despite falling short on quarterly earnings expectations, Canadian-based Canopy Growth, the world's highest valued marijuana stock, skyrocketed on Wednesday after the maker of Corona beer invested $5 billion Canadian, which is nearly $4 billion U.S. 
The giant injection of cash from Constellation Brands is the largest strategic investment in the cannabis market to date, and comes at a time when alcohol companies are making large ventures into the industry
"We're going to spend that money to be around the globe," Canopy Growth CEO Bruce Linton told CityNews on Thursday. - NPR
In part it is the lack of foresight, and the corruption of bought and paid for legislators in Washington that is keeping America from rebuilding their economy in new industries such as cannabis.  Instead President Trump is trying to 'Make America Great Again' by focusing on old manufacturing industries such as steel and automobiles and forgetting that the largest industry outside of technology is Big Pharma.  But to break this paradigm, the government needs to open up the financial sector to cannabis investment, and help direct capital into the economy rather than its continued use in the financialization of Wall Street.


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