Michigan Marijuana Business
The Michigan marijuana business is booming and top public marijuana companies from all around the world are looking to stake their claim. After voters passed Proposition 1, the state laws were amended to legalize recreational marijuana use. Consequently, the state government has created a regulatory body to administer recreational marijuana sales to individuals over 21 years of age.
Until the regulatory framework is ironed out, Michigan weed sales remain in limbo. While the government continues to drag their feet, the added time could be a blessing in disguise for those wanting to invest in the Michigan marijuana business.
The Red Tape of Recreational Pot
While Proposition 1 passed by nearly an 8 point margin, many Michigan residents have adopted a “Not in my backyard” attitude to the new legal bud law. On one hand, this has made it challenging for investors to locate a property that is zoned for marijuana sales and cultivation. On the other hand, those wanting to become one of the first cannabis confabs in the Midwest will certainly gain a first-mover advantage when they are able to get the resources they need to grow, harvest, transport and sell marijuana.
This leads to a very important question: Which publicly traded companies could stand to benefit the most from the legal bud trend in America and how will it change the way we develop pharmaceuticals?
Public Marijuana Companies to Watch
Those wanting to invest in public marijuana companies can look no further than the stock exchange. Apps like Robinhood have made it easy for the casual investor to get involved with marijuana stocks without having to pay commission fees. Let’s take a closer look at some of stocks that might eventually find themselves investing in the budding marijuana business.
Village Farms International
Greenhouse grown marijuana by Village Farms International is becoming big business. While Village Farms has made no announcements about any sort of investment in Michigan specifically, the international Canadian pot magnate has roots in the Wolverine State.
For example, Dr. Roberta Cook is listed on the Village Farms International directors page. If you read Dr. Cook’s bio, you’ll see that Cook received her Doctorate in Agricultural Studies from Michigan State University.
Regardless of Village International’s future plans, the stock has been on fire. From January 2019 to the beginning of June 2019, the stock went from $3 a share to nearly $11 a share. This huge jump in price shows that marijuana stocks have tremendous upside despite it being extremely early in the game.
One of the unintended consequences of legal recreational bud is that it could de-stigmatize the use of therapeutic remedies that contain cannabis.
If this trend continues, companies like Cara Therapeutics could stand to gain the most. Cara has already had a great year in the publicly-traded sector. In fact, Cara’s shares have risen nearly 50% in the first 6 months of 2019. Cara creates products for people who are dealing with pain and industry studies suggest that this market will continue to grow year over year.
With the proliferation of medical marijuana, companies have emerged to study the effects of cannabis on the brain. Therepix Biosciences is heavily invested in creating treatments for patients that have diseases such as Tourettes, cognitive impairment and brain injuries.
Therepix believes that its treatments can help the body absorb more cannabinoids, thus helping the patient receive the full benefits from a marijuana-based treatment. Therepix Biosciences stock quote has largely stayed flat throughout 2019, but this company only has a market share of about 13 million dollars. That makes it an attractive play if you are looking to screen marijuana stocks with tremendous upside.
Recreational Marijuana is here to Stay
Illinois recently legalized recreational pot sales in its state, which could help create a domino effect in the Midwestern US. Many speculate Ohio could be the next Midwest state to legalize pot sales.
It’s apparent that the state by state approach to marijuana legalization is how pot will become legal nationwide. As a result, investors are probably still very early in the game. In the middle of 2018, the very first marijuana IPO was listed on the stock exchange.
When you begin investing in cannabis-based stocks, the number one rule is to do your own research. It may seem uncharacteristic but the states located in the Midwest are leading the charge when it comes to building an economy based on cannabis products. Even traditionally conservative states like Kentucky have legalized hemp and CBD products even though marijuana products remain illegal.
While the state by state approach is here to stay, it’s not out of the realm of possibility for legal interstate weed commerce to happen. That’s probably several years away but if you are invested in a stock that could stand to benefit from further restrictions being lifted off the pot industry, your investment could pay off nicely when you go to cash out your cannabis-based stocks.