Due to a combination of increased legalization, higher consumer demand, and advances in medical technologies, there’s an expectation of increased investment in the rapid growth of many marijuana-based businesses, both in the US and abroad.
Aaron Riley is a cannabis entrepreneur and investor in California, and he is a regular contributor to several cannabis investment publications. We sourced Mr. Riley for his thoughts about some of the latest news concerning MMJ and related products in writing the following article.
If you’re thinking about investing in the cannabis market, here’s a list of some of the latest happenings in the industry to help reveal some breaking opportunities.
New Year Welcomes Marijuana Legalization in Many US States
January 2022 marks the implementation of new marijuana laws in many US states, marking the next phase of the legalization of cannabis. Aaron Riley of California explains that acceptance and regulation are taking place at different speeds in each state, ranging from limited use in certain medical contexts to full legalization for all adults.
Here are some examples of changes that are taking place in January at the state level:
- California is introducing a law that will allow hospital patients to use marijuana for medical purposes.
- Montana will legalize retail sales of marijuana, with adults over the age of 21 being allowed up to 1 ounce of cannabis per purchase.
- Colorado is allowing users of medical cannabis to purchase up to 8 grams per day.
- In Philadelphia, job applicants will cease to be required to be drug-tested for marijuana as a condition of their employment.
- In Arkansas, it’s now possible for doctors to use telehealth services to recommend medical marijuana to patients.
Aaron Riley says that as a result, experts are predicting a wide range of both retail and medical opportunities for the cannabis sector that businesses will capitalize on.
UK Builds World’s First Carbon Negative Cannabis Cultivation Plant
According to pharma cultivation company Glass Pharms, the world’s first carbon-negative cannabis cultivation plant is to be built in the UK.
The plant, which has been set up to produce high-grade medical cannabis, will be built on a 2.5-hectare site in the South of England as part of a £22.5m ($30.4m) investment.
Aaron Riley explains that this development showcases the green credentials of the cannabis industry, as well as demonstrates the rapid growth of the medical cannabis sector in the past year.
Currently, almost all medicinal cannabis in the UK is imported. Glass Pharms hopes to spark a wave of investment into domestic production of cannabis in the UK, having been awarded the first commercial license to grow cannabis in the UK by the government.
Under current proposals, the plant will convert food waste into electricity to heat the cannabis greenhouses as part of a range of measures that will help the site secure carbon-negative status.
Glass Pharms say they hope to begin supplying customers with medical marijuana later in 2022.
Chicago Atlantic IPO Shows Strength of Cannabis Investment Sector
Cannabis-focused investment firm Chicago Atlantic closed its mid-December IPO after having raised proceeds of approximately $100 million from the sale of 6.2 million shares of common stock, highlighting the strength of the cannabis investment sector going into 2022.
Aaron Riley of California explains that the firm, which was founded in 2018, delivers real estate loans to customers that had trouble securing mainstream finance to set up cannabis plants in the US.
The successful IPO was one of a number of high-profile IPOs in the cannabis sector in 2021, showcasing the continued growth of the industry worldwide.
Other successful IPOs include the maker of cannabidiol-based capsules HempFusion, whose launch onto the Toronto Stock Exchange in January resulted in a better-than-expected market valuation of $175 million, and Leafly, the cannabis giant that went public through a SPAC in August which valued it at $532 million.
Growth in the sector shows no signs of stopping, with a report by Grand View Research suggesting that the marijuana market, which was worth about $9 billion in 2020, is set to grow at a compound annual growth rate of 26.7% from now to 2028.
Malta Becomes First EU Country to Legalize Marijuana
Malta has become the first country in the European Union to legalize sales of marijuana for personal use according to Aaron Riley.
The move by the Maltese parliament in mid-December allows anyone over the age of 18 to purchase up to 7 grams of the drug, while it will also be legal to purchase and grow the drug at home.
The announcement by the EU’s smallest member state is the first in a number of planned liberalization laws governing marijuana use amid changing attitudes to the drug across the continent.
Aaron Riley says that Germany has announced plans to establish a legal market for cannabis use, while in Italy, a referendum on personal use of the substance is being organized.
Switzerland has also said they plan to create a legal market for the substance, while Luxembourg has already passed legislation to allow adults to grow up to four marijuana plants at home.
Bottom Line
The increasing liberalization is creating a pathway to increased demand for cannabis worldwide as we move into 2022, with several US-based marijuana companies signaling their interest in expanding operations in the continent. As a result, Aaron Riley of California believes that cannabis will be an excellent investment for entrepreneurs in the next year and beyond.
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