The legalization of Medical Marijuana in some parts of the United States has led to CBD becoming increasingly popular. The CBD market is being led by consumers who are buying these products to experience the medical effects while at the same time; there is plenty of confusion as to exactly how much CBD is needed to achieve the desired results. Cannabidiol products that are found in states with legal  recreational or medical programs consist of cannabis derivatives that contain as much as 30% CBD. However, non cannabis friendly states use hemp-based CBD products sold in health food stores that only contain 3.5% of this compound.

Medical Marijuana is becoming popular because most consumers are searching for a wonder drug that can treat ailments that relate to anxiety and chronic pain. Researchers are working diligently to find out if CBD can be used to cure cancer and epileptic seizures in children. There are plenty of medical professionals that believe CBD may also help those that are suffering with Alzheimer’s. Now that more than 17 states have legalized the use of Cannabidiol products in the last two years, the amount of people that can benefit from CBD has grown exponentially.

Various companies are currently producing Cannabidiol in different forms to include vape pens, edibles and topical salves that can be absorbed through the skin. CBD tinctures have become the best method of delivery for children who have epilepsy since tinctures are easy to administer and swallow.

A large percentage of the public currently prefers using Cannabidiol products over prescription opiates and other Schedule 2 medications. As these products become increasing more popular, the negative stigma associated with CBD and cannabis infused medication is being replaced with hope and the possibility of living a pain free life without opiates.

As of 2018, twenty-nine states and the District of Columbia have legalized medical marijuana, nine states and the District of Columbia have legalized recreational marijuana, and thirteen states have merely decriminalized the use of marijuana. Polls consistently show the majority of Americans support using tax revenue collected from marijuana sales to fund local programs that are currently underfunded or not currently funded at all. The massive fiscal injection to state and local programs that were slashed due to budget cuts has led to more and more states placing legalization initiatives on upcoming ballots for the 2018 and 2020 election cycles.

Although over half of states have some version of a program in place to facilitate the production, sale, and use of recreational and/or medicinal marijuana, these activities remain a crime under federal law. Dispensaries are not violating state law by selling marijuana, however they are in still violation of federal law.  This same principal applies to individuals who uses marijuana both recreationally and medically. Thus, states with recreational and medicinal marijuana programs have had to construct their own legal, regulatory, and tax frameworks that allow cannabis businesses to cultivate, process, and sell marijuana.

Researchers at Colorado State University-Pueblo have discovered that the legalization of marijuana has had a positive impact on the economy due to revenue generated through taxes and fees collected both the state and local level. Marijuana purchases are subject to two-levels of taxation: (1) fees paid by businesses to sell cannabis and (2) the applicable state and local sales tax passed onto consumers. Both of these are major revenue streams for the state. Businesses running medical marijuana dispensaries, for example, are subject to a $7,000 to $15,000 application fee, $5,200 to $13,200 registration fee, and a $5,800 to $13,800 license renewal fee.The state made $7,340,000 from application fees in the first year alone, exceeding the government’s cost to regulate the industry. The additional generated revenue accrues to the state’s general fund that can the be used to revitalize programs that have underfunded or unfunded due to budgetary cutbacks.

While revenue can be in the tens or even hundreds of millions of dollars, it may take some time for state or local governments to start profiting off the industry. In Colorado, the tax revenues initially fell short of projections that accompanied the legalization campaign, but eventually the state collected marijuana tax revenues greatly exceeding the original estimate of $70 million per year. After an initially slow start, there was an impressive year-over-year growth starting in 2015 with collections in retail marijuana tax revenue growing to $113 million, demonstrating that a legalization-and-tax regime could raise millions (if not billions) of dollars per year in marijuana tax revenue.

In addition to revenue raised by taxes and fees, state and local governments have increased their revenue stream by spending less enforcing cannabis-related crimes. In California, the fiscal impact of legalization is projected to produce net reduced costs of $100 million annually to state and local governments related to enforcing non-violent marijuana-related offenses, handling the related criminal cases in the court system, and incarcerating and supervising certain marijuana offenders. The state plans to use most of these funds to combat addiction, requiring the funds to be spent for specific purposes such as substance use disorder education, prevention, and treatment.

This budding industry’s rampant growth is fueled by rising public attitudes towards cannabis consumption and new technology designed to create more ways to utilize cannabis aside from smoking it.

The cannabis industry’s growth comes from many aspects of the business, but here’s a quick peek some of the ways that technology has shaped and will continue to develop the way this industry is conducted as legalization spreads to more states in the US.

1. Seed-To-Sale Tracking

For legal cannabis to be available in all 29 states that offer some form of marijuana distribution by law, a new system was needed to track the plant during its entire lifecycle. Cannabis distribution companies must adhere to strict regulations, which is why seed-to-sale tracking was born.

Seed-to-sale tracking assigns a barcode to a specific plant that can be scanned at every point in the plant’s growing process. The same barcode the dispensary scans to sell a pre-roll is the same barcode assigned to the plant at its grower’s farm when it was planted.

The benefits of this type of system mean the plant can be tracked with written records through every step of the process. It also allows better inventory management for dispensaries and growers, while providing built-in security.

2. Strain Analysis

The legalization of cannabis has turned the market into a connoisseur’s market, much like the craft brewing industry has revitalized alcohol sales. Recreational smokers now expect to know the exact THC and CBD content in the strains they’re buying, which has led to a surge in strain analysis laboratories.

Strain analysis will break down the percentage of cannabinoids present in any bud, including any terpene flavor profile that may give the flower a unique taste. Cannabis connoisseurs expect high-end products featuring lots of THC or CBD, depending on the product being sold. All states with legal status require cannabis that is sold to undergo a laboratory analysis to determine THC, CBD, and other cannabinoid levels. These analyses must be performed regardless of whether the product is fresh bud or edibles.

3. Medicinal Uses

While cannabis is still classified as a Schedule I drug at the federal level; more biotech companies are looking into the health benefits of cannabis. CBD oils have had multiple studies conducted that prove the oil is an effective treatment for those who suffer from seizures, but more medical trials must be conducted as the industry grows.

The Schedule I classification is the primary speed bump for these companies, who are exploring how cannabidiol (CBD) could be useful to other medical applications like addressing obesity and osteoporosis. The full medicinal benefit of cannabis cannot be determined until this restriction is lifted, as the Schedule I classification scares away would-be investors and casts doubt on the budding industry’s stability long-term.

4. Consumption Methods

One of the biggest areas for growth in the cannabis industry is companies that focus on new methods of consumption. Smoking cannabis is the traditional method of consumption, but it is not the best vehicle for reaping the benefits of cannabis.

Vaping is one of the fastest-growing product categories in the cannabis market, with many different styles of vaporizer for consuming cannabis without directly combusting it. In fact, a marijuana delivery service in California has reported a steady decline in flower sales as vaporizers become more popular. Flower sales went from 75% of total sales in 2015 down to just 54% of total sales in 2016. Vape cartridges grew from just 6% in 2015 up to 24% in 2016.

There are only two states confirmed to be voting on marijuana this election cycle: Michigan and Oklahoma. Oklahoma is the least interesting, financially, of the two since their voters will be voting on legalization of medical marijuana as opposed to recreational, therefore providing less financial opportunity to those outside of the medical field. However, Michigan has proved to be very interesting. The measure to add marijuana legislation to the ballot received enough votes in 2016, but barely missed the deadline for submission. However, public support for the measure is quite large. Michigan voters will be voting on recreational legalization in November, as the petition came in before the deadline this time. Also of note: Arizona has a large petition circulating for recreational legalization that may end up on the ballot, whereas Iowa, Utah and Nebraska all have large petitions for medical legalization circulating. Only time will tell if it makes it to a vote.

That’s what to watch out for, but what do we already have? Nine states have legalized recreational marijuana thus far. Those nine are: Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, Vermont, and Washington, as well as Washington D.C. So far, all nine states (and D.C.) have experienced major financial gains directly correlated with the legalization of marijuana. State infrastructure benefits from the increased tax collection and investors have benefited from their investments in the state marijuana companies. This is why it’s key to keep an eye on what other states will be legalizing recreational marijuana as it’s soon to become one of the – if not the – most profitable businesses in the United States.

The Brightfield Group, an independent financial analysis group, predicts that by the year 2022, the marijuana market will be worth $22 billion dollars. As such, it’s the perfect time for investors to invest in marijuana capital. Why? The market will be hitting $591 million dollars in 2018, meaning that we’re looking at major increases in market value and profit over the next four years. Now is the time to get on the ground floor of this opportunity and to make quite a large sum!

Mitch McConnell’s 2018 Farm Bill will remove hemp as a Category 1 offense, federally. The House and Senate have both passed the bill and now it only awaits President Trump’s approval. With farmers across the country legally able to grow hemp (to be, in turn, sold to the states with legalized recreational marijuana), the industry’s gains will most likely be even bigger than currently predicted. Investors need to keep watching the bill to verify it gets signed into the law, and then act on one of the best investments they’ll ever make. The marijuana market is, without doubt, one of the markets destined to shape the financial landscape of the 2020s.

CBD oil sends signals to the brain and the immune system that gets cells to positively respond to pain. It is a good remedy for people who suffer from inflammation and serious back pain since it is powerful enough to relieve chronic conditions.

Cannabis has been found to improve sleep, mood, and pain unrelated to cancer. People who do suffer from cancer can use a therapeutic grade cannabis oil to provide relief from the pain associated with chemotherapy or the disease itself.

Cannabis has also been found to provide effective relief from anxiety and stress and is great at releasing hormones related to pleasure and relaxation. It is also effective in producing a sense of relaxation and calmness in those who take it.

CBD oil actually alters serotonin levels in the body which helps to improve mental health.

Cannabis oil is very versatile and also helps promote a healthy heart. It actually stimulates the antioxidant process and helps to rid the body of cholesterol which helps to boost the function of the cardiovascular system.

People who consume cannabis have been found to gain an appetite and cannabis essential oil can help to regulate the appetite as well as induce hunger. It can also be used to stimulate the digestive system to become more “regular.” This is a useful way for people to gain weight rapidly after losing a substantial amount of weight due to an injury or illness.

It also helps people who are suffering from insomnia as well as anxiety during the night. Cannabis has been found to promote restful and undisturbed sleep. It also reduces glaucoma and can prevent muscular degeneration.

Cannabis helps to protect the skin and can be used externally as well as internally. It helps to stimulate the shedding of dead skin and also promotes re-growth of healthy and even glowing skin. Cannabis sativa oil prevents wrinkles, protects against eczema and psoriasis and signs of aging. It even prevents headaches and is even believed to prevent cancer. It is very close to being a miracle remedy for countless ailments, and it is a natural way to contain and deal with pain. It has gotten a reputation for being a recreational drug, but it has the potential to do so much more.

Over 60 percent of Americans are in favor of the legalization of cannabis and the majority of states allow at least some cannabis use. Cannabis has the potential to become a booming industry and is in very high demand. According to reputable surveys, 52 percent of adults have tried cannabis at least once. Cannabis has the potential for profitability and is a sound business opportunity.

Many stocks have seen such fast growth that it brings to mind the dot com boom of the late 90’s. Tech firms capitalized on rapidly expanding markets. Those who found the companies with real business models walked away with fortunes. The perfect storm of rapid legalization of the industry has attracted big investor’s attention. However, they often have to move slowly due to their size. Smaller fast movers may end up getting in sooner while companies are still undervalued. This of course can lead to much bigger returns.

One fast growing company is Canopy Growth Group (CGC), which has just raised a whopping $4 billion dollars from investors. That is essentially the equivalent of seeing a company such as Google or Amazon when they first went public. The industry is buzzing with many people looking to duplicate that for themselves. The stock has since soared from about $24 in May, to its price of  $41.59 according to NASDAQ. [https://www.nasdaq.com/symbol/cgc]

Another publicly traded company is named Player’s Network Inc. (PNTV). The firm is based in Nevada and California. It focuses on the seed-to-sale segment of the cannabis industry. Seed-toSale refers to everything from growing the plant to selling it in licensed dispensaries. With two massive facilities in two very strong markets, Player’s Network expects to turn its first profit by the end of 2018.

PNTV recently purchased a 56,000 square foot facility that is estimated to generate an annual revenue of $11 million. After a reported 2474% increase in revenue, the firm has targeted an increase from 5 cents a share to 20 cents. Player’s Network aims to achieve this by scaling upon its foundations into about 17 other states. Markets such as Arizona, Florida, Hawaii and New York are among the biggest in the United States. It may soon be among the biggest in the business.

One more of the stocks to look at is Aurora Cannabis (ACBFF) which is another Canadian company. It is licensed and is listed on the Toronto Stock Exchange. It sells things such as oils, vaporizers and the plant itself. It has a market cap of over $5.8 billion according to Yahoo[https://finance.yahoo.com/quote/ACBFF/] While it appears to be a bit more volatile, the stock is still about 4 times higher than it was at the beginning of this year.

The last opportunity to study is known as Cronos Group (CRON). It is based in Canada and has recently had a large spike in share prices. Cronos group is the very first of its kind to be licensed to trade on the NASDAQ. United States citizens finally have the chance to legally invest in the industry. This is because the company is legally operating in Canada and therefore doesn’t run into problems for investors. Such news has already gotten the firm massive returns, and now investors will be looking to duplicate these results elsewhere.

Institutional investors also have responded favorably to the new recreational supply agreement reached with the Ontario Cannabis Store. This is according to an article published by a popular investment site called The Motley Fool[https://www.fool.com/investing/2018/08/21/why-cronos-group-inc-stock-jumped-again-today.aspx]. The “store” is not an ordinary store, it is the sole licensed retailer for all of Ontario’s recreational Marijuana. Ontario is Canada’s most populated province and is therefore a huge market with room to grow.

Many are beginning to believe the industry is still undervalued. One by one states have marched to legalize. Entire countries such as Canada have broken ground by legally regulating the industry. Countless firms are being snapped up by larger organizations. It may not be long until the big money in finance seizes the opportunity and pounces. When that happens it will may mint fortunes for the few who took calculated risks and got in early. Of course many companies in silicon valley didn’t make it. However, some such as Google, Oracle and many others had clear strategies and footing for massive growth. Investors who passed on the huge gains of the dot com boom may remember a similar situation.

To be entirely upfront, the legal Marijuana industry is still in its early stages. With such high potential returns, it comes with risk as well.  It is important to note the companies with real fundamentals that can be built upon. Investors are advised to do their due diligence. They can do so by consulting legal and investment advisers and doing deep research. After careful consideration, one may find quite a few companies worth a look at.

Currently, medical marijuana is legal in 30 states. With more than half of the country voting to legalize cannabis at the state level, federal decriminalization seems like a more achievable goal every day. With federal legal cannabis on the horizon, Americans have the unique opportunity to learn from our neighbor to the north and apply what we learn to decriminalizing cannabis at the national level.

One of the best ideas included in the Cannabis Act was the decision to allow providences to make regulatory choices for themselves. For example, Newfoundland will allow private shops, while other provinces will only permit government-run stores to sell cannabis. The U.S. should take a cue from this decision and leave the majority of regulatory decisions up to the states. By allowing each state the right to make their own decisions regarding how they want legal cannabis to be regulated, it will ensure every state can foster the environment most desirable for their citizens.

Another well thought out strategy utilized by the Canadian Senate was taking the time necessary to draft a bill that anticipated a number of possible eventualities and legislated accordingly. This was accomplished by waiting for input from federal task force teams before drafting the Cannabis Act. By affording a similar attention to detail to the development of comparable cannabis decriminalization legislation, the U.S. Congress can draft laws that provide lasting, reasonable regulation. Furthermore, by ensuring that federal task force teams complete adequate research before promulgating decriminalization legislation, the U.S. can be sure that the regulations will be more likely to stand the test of time.

However, one area where the U.S. might want to reconsider Canada’s legislation is packaging. Under Canada’s Cannabis Act, all packaging must be nondescript, with strict regulation governing the fonts and colors available to designers. While the U.S. may still find it desirable to include adequate warning labels on packaging (as with tobacco and alcohol products), it is unnecessary to place such complicated packaging requirements on cannabis products. By requiring packages to include a warning label but otherwise allowing the company to decide what packaging is most effective for their cannabis product, the U.S. can approach the cannabis industry with more opportunities available for development of market.