Marijuana companies are ready to invest in high tech infrastructure to produce cannabis
Some of the startup companies operating on marijuana trade have the potential to make it big if the business of the pot grows rapidly in the next few years. In 2015, marijuana sales in the open market grew by $0.8 billion compared to 2014. Based on the stats it is expected that cannabis sales can grow by 25 percent this year and cross the $6 billion mark.
While marijuana has been legal for only 2 years, the technology of production and extraction has to undergo developments to serve the demanding customers. With more finance and adapting to new technologies, the startup companies have a fair chance to earn significant profits and establish themselves in the market. Also, this environment will boost the confidence of investors to put their money in the marijuana companies.
One of the investors David Berger said “Electrum supports legal cannabis as it creates new jobs and provides a new source for collecting taxes”. He also expects that marijuana trade will be the leading creator of wealth in U.S in the next 5 to 10 years.
The legalization of marijuana is supporting many researches in health centers and dispensaries. One of the researches are developing antibiotics for cancer using cannabis. If anything can stop the growth of marijuana then it is the legal restrictions. Thankfully, many of the states in U.S have released their boundaries over medical marijuana. However, the federal government still has ties over the distribution of marijuana like alcohol or cigarettes.
The tech startups expect the release of all restrictions over marijuana. They eventually want both medical and recreational marijuana become legal in the market. Isaac Dietrich the CEO of Massroots expects to see growth of his company accelerate this year. In fact, Massroots is the first company that applied for getting listed on Nasdaq.
Many believe that now is the right time for getting into the marijuana business. The reforms in regulation are what’s required to bring a fortune for cannabis trading and distribution companies. The companies dealing with cannabinoid pharmaceuticals, retail, support and hemp infused products are expected to have a roller coaster ride in the coming years. If government is more receptive to cannabis then American economy will boom as a result of marijuana trade. The confidence of investors has to still increase as many are not willing to take the risk of SEC trading suspensions. After Colorado accepted the recreational marijuana, the hope for the marijuana trade becoming big in the country it is at rise. With the full acceptance, marijuana production and distribution might be officially though in business colleges.
