As the cannabis and hemp marketplace continues to mature, more investors have begun to enter the playing field. These groups look at the cannabis space as an opportunity to acquire or merge with businesses that can offer potentially high returns.

But this process is not as simple as it seems.

Sometimes, the true financial picture of a company is not what it is portrayed to be. Companies could report a massive net income, but their operating cash flows may be negative. An extensive process of verification, investigation or audit of a potential deal or investment opportunity is required to confirm all relevant facts and financial information. This is known as financial due diligence.

MCN speaks with Cannabis Council of Canada President George Smitherman about the cannabis landscape and policy in Canada.

Canadian cannabis policy and governance are some of the most progressive in the world; and the country’s legalisation of medical, adult use and derivative forms of cannabis have contributed to a healthy, growing cannabis market. Sales topped $2bn across 2020, with further growth expected this year; while the market for illicit products has been steadily shrinking since 2019.

It’s not just the turtles and the fish we need to worry about, humans are now breathing in microplastics from all types of packaging.

According to the lead researcher of a Utah State University study, microplastics are turning into dust and are contaminated with toxic chemicals, plastic fragments, and metals.

These contaminants are in 4% of the air we breathe.

The cannabis industry’s interest in pollution awareness is escalating rapidly.

When Canopy Growth (NASDAQ:CGC) announced plans to acquire Acreage Holdings in 2019, it was an innovative and unique way for the company to position itself for growth in the U.S. market ahead of legalization. Even though the deal still can't be completed due to the federal ban on marijuana in the U.S., it is a way for Canopy Growth to demonstrate to investors how it plans to succeed and grow when pot becomes legal.

Will Cannabis Stocks Resume Upward Momentum?

Marijuana Stocks have begun to regain some of the market value they lost at the end of February. On the first day of March, top cannabis stocks saw upward momentum as the day progressed. During trading top pot stocks like Curaleaf Holdings, Inc. (OTC: CURLF) ended March 1st up 3.4% showing signs of possibly rising in the market. In reality, the cannabis sector has seen significant gains since the start of 2021.

A decade ago, I was spearheading company growth for Atlas Snowshoes, which had just invented and launched a modern snowshoe. Some consumers associated snowshoeing with flimsy equipment, tedious exercise and winter vacationers who prefer to veer away from ski resorts.

That simply wasn’t going to work.

So we utilized innovative engineering and design to create equipment that people want to own and developed partnerships with major ski resorts around the world to create the luxury snowshoe experience known today. The lessons I learned then serve me well now as I face challenges – both similar and new – in the cannabis industry.

Canadian retailers are making their presence known south of the border, seeking additional growth while attempting to establish a foothold ahead of U.S. legalization plans. 

Fire & Flower Holdings Inc., High Tide Inc., and Canopy Growth Corp.'s Tweed have begun wading into the U.S. cannabis market in recent weeks, taking similar cues from pot producers who have also entered the U.S. despite regulations that prevent Canadian-listed companies from fully operating in the space. 

"The companies are using Canada as their testing ground to get to the real prize, which is ultimately the U.S.," said ATB Capital Markets Analyst David Kideckel, in an interview. 

Cannabis may be one of the hottest investments of the year.

More states are legalizing its use, including New Jersey. North Dakota just approved a cannabis legalization bill. Legalization has been proposed in Maryland. In fact, the Maryland sponsor of the bill, Del. Jazz Lewis, argues, “the bill would take the production of cannabis off of the streets to ensure safer products, while simultaneously creating jobs, helping small businesses, and bringing in potentially hundreds of millions of dollars in annual tax revenue.”

From the point of view of cannabis extraction, scaling production isn’t always a simple equation.

Scaling extraction means putting together puzzle pieces, often within rigid constructs of local regulations, astronomical equipment costs, and overwhelming data management. 

Even when a new extraction machine is financially feasible, local laws may restrict the handling of dangerous materials.

Worse, the backend data management piece can easily inundate a producer who’s used to working within a network of Excel sheets.

Profitable growth in the cannabis concentrate sector means hitting the sweet spot in a Venn diagram, comprising efficient output, compliance management, and robust production-tracking protocols. 

The emerging legal cannabis industry is going global, with a growing list of countries that have legalized cannabis for adult and/or medical use, and even more countries exploring a similar move. At the same time, the world’s climate is changing, with extreme weather patterns picking up in frequency and severity all over the world.

Climate change is affecting virtually every aspect and sector of the agriculture industry, and that is likely to be the case for cannabis too as outdoor cultivation is permitted in more areas. As the global cannabis industry continues to expand across the planet, and climate change, unfortunately, marches on, the problem for cannabis entrepreneurs is going to be more pronounced.