Cannabis Stocks in the US
Canada has the ability to allow cannabis businesses to go public now that it is legal. The United States still classifies cannabis as a Schedule 1 narcotic with no evidence of medical benefits (I still laugh out loud when I type that), and such does not allow legal, recreational cannabis companies to participate in the national stock market.
This puts cannabis businesses in the US in an awkward position. Unless they are an already listed pharmaceutical company that is creating a cannabis-derived medicine. Also with hazy laws currently regarding CBD, companies like Charlotte’s Web are able to be listed.
Other than CBD companies and pharmaceutical companies, the main stock options related to the legal cannabis industry is the supply businesses, i.e. the pick and shovel sellers. To elaborate, during the gold rush, a bunch of people may have gotten rich by finding some gold, but a lot more people got rich selling the picks and shovels to find it.
The majority of cannabis-related stock options in the US currently consist of packaging companies, safety technology companies, equipment companies (hydroponic equipment distributors), consultants and R&D companies or pharmaceuticals.
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