Marijuana Money

A new multi-billion dollar industry became a reality when Colorado and Washington States approved recreational marijuana in late 2013. For the first time, re-sales of marijuana and marijuana extracts and edibles are legal transactions in two of the United States.

When the President of the United States publicly refers to the relative impact of alcohol and marijuana on our nation’s social ills, as he did in early 2014, some form of Federal legalization, regulation, and taxation cannot be that far behind.

Together with a jump in the share price of publicly-held marijuana-connected companies, the private placement market for marijuana-connected businesses has exploded.

Marijuana funding portals, now permitted under new SEC rules, offer marijuana businesses with a minimal intermediation drill and burden. For the first time, marijuana entrepreneurs can meet prospective investors online at a neutral forum with clear guideposts along the way.

There will no longer be a need to pay membership fees to join a group of people most of whom are actually afraid to share too much with each other anyway.

So . . . capital is flowing in, new companies are launching, existing businesses are expanding . . . and all the while a “prohibition-premium” still obtains with cannabis connected investments.