Marijuana Is Now Publicly Traded On The Stock Market
A company called TRTC, a marijuana agriculture company, has just announced a merger of a California- based dispensary on Tuesday. This new merger is the first time a company directly involved with the production, extraction and sales of marijuana is publicly traded. Cannabis business are usually listed on the OTC markets and some have even made it to the Nasdaq. Most of these companies have not dealt with sales of marijuana until now.
With the legalization of medical marijuana in 23 states and the recreational use in four states. Marijuana is becoming a profitable business in America. With the rapid increase of marijuana revenue in 2015. Marijuana has about 48,000 registered patients. On average over 1,000 people visit marijuana dispensaries everyday.
Companies are starting to look into cultivating there own products. Currently a retail shop could spend up to 2,500 a pound. That’s then sold for around 5,000 a pound. If companies started to just grow there own products, this would cut down cost to the consumer. If more dispensaries started growing on average the price per pound would be cut almost in half. A pound of marijuana, depending on the strain can cost up to $7,000 a pound.
Even though it makes more sense for a cannabis store to become a one stop shop. Law officials don’t want dispensaries to cultivate and sell marijuana. Under California Bill 226 signed by Governor Jerry Brown on Oct 9, 2015. Your not allowed to cultivate and sell unless you began operating before July 1, 2015.
With marijuana becoming a publicly traded commodity. Investors will have more information to make informed decisions. Companies will have to have full disclosure for all profits and risk factors in association with the business. Marijuana is about to say goodbye to the black market and hello to Wall Street.
Would You Invest In Marijuana Stock?