Thursday, April 25, 2019

Cannabis Investments - The New Investment Phenomena Worldwide

The Green Phenomena, is this a thing to stay or a fad or a regulatory nightmare waiting to catch investors......The world renown SALT Conference in Las Vegas 2019 will have a Cannabis Focus with Ron Geffner from Sadis Goldberg speaking. 
Are we reaching a short term Bubble or is this just the beginning of a world investment thesis. 
Global spending on legal cannabis is expected to grow 230% to $32 billion in 2022 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. The research projects a majority of that, nearly $23.4 billion will come from the United States. In context of more states voting in favor of marijuana use legalization and business interest sparking across the board, that definitely would make sense.
Public to Private to Bonds to Real Estate all going for a little piece of the pie.. Conferences on a global basis focusing on this little Green Magic, even SALT the big alternative conference in Las Vegas will have a session on cannabis lead by Godis
We recently met with a company where I am joining the Advisory Board The House of Green based in Guernsey. The Channel Islands where the exporters to Europe for Tomatoes pre the EU in the 1970s and then Spain undercut them leaving them with many greenhouses, now Guernsey plans to the the Center of Excellence for Europe, and THOG has also joined up with a leading scientist Dr Dorothy Bray who has a US Federal license in THC bringing the US and Europe together for Medicinal and CBD products, which is a very exciting project, but being that our roots in the last 18 years have been financial regulation, our mindset is also on the world of Cannabis and the growth of its regulation on a worldwide basis. 
In the year through January 11, 2019, the United States Marijuana Index, fell 20.7%, as compared to about 6.5% loss seen by the S&P 500. Given that is not exactly an apples to apples comparison, but it does make a case to at least investigate investments in marijuana stocks.
Cannabis is now Schedule 2 drug in the United Kingdom, after the government decided it had medical uses after all. The recent cases of Alfie Dingley and Billy Caldwell, two children needing medicinal cannabis to ease their epilepsy, paved the way for change. Yet Javid has stressed that legal recreational use is “in no way” on the horizon. This despite a recent report stating that cannabis legalisation could save £300 million in policing, criminal justice and drug treatment services, and a June study showing that it could generate annual tax revenues of £3.5bn. The latter is surely an enticing figure. The UK could do with the cash; besides, it’s already the world’s biggest producer of legal cannabis for medical and scientific research (95 tonnes in 2016, 44.9 per cent of the official global total), as well as the biggest marijuana exporter. We are giants. And yet, in terms of recreational business – well, there is no business.
The agriculture industry in the UK has started to recognise the increasing value of hemp as a crop and is expected to increase output and processing capabilities by 200% in the next 5 years.
In hemp varieties grown for seed or fiber use, the plants are grown very closely together and a very dense biomass product is obtained, rich in oil from the seeds and fiber from the stalks and low in THC content.
Much of the hemp grown in the UK in recent decades has been used in the building & construction industry, in a variety of forms, mainly as non-structural building materials and wall insulation. The natural insulating properties and astonishing durability of hemp make it a viable alternative, in terms of technical quality, to traditional materials.
Recent reports indicate that the global cannabidiol (CBD) market is estimated to grow by 700% and could be worth $2.1 billion by 2020. In the UK, the number of people using CBD oil is estimated to have reached around 300,000. The Cannabis Trades Association UK has estimated that UK CBD use has doubled in a year. The CBD market has been thriving in the UK. Although CBD, making medicinal claims, needs to receive a marketing authorization from the MHRA, many companies have set of CBD companies categorised as food supplements.
In that time, the market value for CBD oil in the UK has gone from almost nothing to €57m per annum. The health and well-being market looks likely to capitalize on growing public interest, with CBD-based snacks, suppliments and even skincare products making their way onto shelves.
Bill Gates is supporting the poor and wellbeing, and is finding it hard to give the funds away. Marijuana in many jurisdictions has fulled terror and drug abuse, but if this becomes a global legalised industry and the growing of the product is for the benefit of a stressed planet both for people an animals maybe there is a new area that Bill and Melinda can support a global turnaround - turning the underworld into a positive for the benefit of the planet and mankind.


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