Cannabis as a whole has managed to become wildly successful over the course of the past several years. With new updates to legislation and... The Growing Cannabis Industry

Cannabis as a whole has managed to become wildly successful over the course of the past several years. With new updates to legislation and the changing public perception of the substance, it seems that the industry has more potential than ever. The two main markets that many have been watching for investment purposes have been Canada and the U.S. due to the changing legislation in both areas. The North American cannabis market has presented a large amount of opportunity for those looking to get into such a new and potentially lucrative industry, and it only looks to continue doing so into the near future.

The cannabis market as a whole is comprised of three main parts of the industry. Those three parts include extraction and cultivation, the market on dispensaries and the biotech industry that is associated with utilizing cannabis for new ways to make medicines.

The cultivation and extraction market has been at the primary source of investing due to how prevalent it is in the world view. Many companies have come to the forefront of the market with new ways to cultivate cannabis in higher yields. This has become ever more important as markets begin to develop in new places around the world. One of the most important factors that many investors are beginning to consider is the fact that Canada could potentially begin exporting cannabis to various places around the world with legal markets. This could ensure that even if there is a slight overproduction, all of that product will, in turn, be sold. The company Canopy Growth Corp (NYSE:CGC) has been one of the companies that have been leading the fight for some time. Hailing from Canada, Canopy has been working to increase its production of the cannabis plant so that they can begin to meet the needs of the new and growing recreational cannabis market domestically.

Looking to the U.S., the company MedMen Enterprises (CNSX: MMEN), has become another key player in the industry. MedMen has been working to commodify the dispensary operations in the cannabis world by opening uniform storefronts around various states in the U.S., most notably throughout California. Companies like the two mentioned above have also both been working to secure new acquisitions throughout the market as more and more companies begin to offer new ways to deal with the cannabis plant.

The biotech side of the industry has also been extremely notable for some time now, as large companies like GW Pharmaceuticals (NASDAQ: GWPH), have begun to secure new ways to use the cannabis plant. One report states that “GW Pharmaceuticals plc (GWPH) achieved the first major milestone for a cannabis-biotech company when the FDA approved GW’s cannabidiol (CBD) based drug, Epidiolex. Currently, cannabis (and all cannabinoids contained therein) are considered a Schedule I substance by the DEA, meaning that the government views cannabis as being highly dangerous and without medical benefit. However, as a consequence of Epidiolex’ FDA approval, the DEA will probably have to reschedule CBD as a Schedule II substance or possibly even lower.”

The cannabis market as a whole, however, is still very much in its infancy which means that there is a long way to go before companies can be expected to reach their full potential. As the legislation in the industry begins to change to reflect what is wanted by the people, it seems as though the market on cannabis is only poised to continue the massive growth that it has already cemented. The hopes are high that the success of the industry can continue throughout the next few years.

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