Cannabis Companies: Investors and Professionals Taking Stock

Like the industry itself, employment and investment in cannabis businesses are rising. Yet, it remains true that special risks apply to cannabis enterprises beyond what is seen with “conventional” businesses.

The risks notwithstanding, there should be no surprise at the growing numbers who seek opportunity in the rapidly rising cannabis industry. This is particularly true of investors, as well as seasoned professionals from other industries with experience building and running companies. Many are drawn by the strong double-digit market growth rates and notion that we are witnessing the beginnings of what will ultimately become major consumer and wellness product market sectors. In addition to a growing number of marijuana-themed public stocks, rising private investment from funds and investor networks are providing capital to businesses.

A primary market growth driver is states’ adoption of new cannabis laws, and permitting of businesses to produce and distribute. As many as a dozen states...

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