Investors, Cannabis is Coming to a Country Near You

Canada finally announced October 17th as the first day of legalization. But the banks still aren’t biting.

Over the past 9 months, attention and capital has poured into Canada with the anticipation of cannabis legalization. Now that Canada has made it through prohibition, and the date has been set for a new era of freedom, the rest of the world is just waking up.

The de-stigmatization is opening eyes quickly. Each day, entrepreneurs and investors see the green light of a future year 2030 — a time when Americans will spend $75 Billion per year on cannabis (more than soda), according to estimates from investment banking firm Cowen & Co.

Undoubtedly, the perceived risk of cannabis investments in the market is dropping. Yet it hasn’t gotten much easier to finance cannabis endeavors. Banking remains restrictive and the all-cash barrier is a giant burden for cannabis entrepreneurs. It takes legislation to change this. Canada has now given the US a direct example of how the process can unfold in both public and private markets.

Despite the buzz, Canadian banks have been slow to providing full-service banking to cannabis businesses over the last 12 months. Private capital through investment banks, brokerage firms and alternative lenders got the work started until the market had effectively dissolved the worries as a problem.

The window of opportunity is here for private investors in US cannabis, before the majors come around.

If you’re interested in exploring the cannabis market as a private investor, you can visit www.basecanna.com to learn more about the legal cannabis landscape and our direct offerings.

What are your thoughts on Canada’s push into legalization? When will the U.S. follow suit?

Leave your comments below! :)