In this article, we’ll cover:

• Cannabis market statistics
• Cannabis user’s stats and demographics
• Cannabis stats by state/country
• Cannabis cultivation
• Legal cannabis sales statistics
• Cannabis’ economic impact

Cannabis market statistics

North America, and the U.S. in particular, dominates the global cannabis market share. As more adults shift their views on state and federal marijuana legalization, the cannabis industry is poised for ongoing growth. The once-illegal plant is now drawing interest from all kinds of investors thanks to changes in both legislation and cultural acceptance of legal cannabis. And the overall cannabis market is predicted to grow steadily through 2030 (Research and Markets, Grandview Research, 2022). 

1. The U.S. dominated North America’s legal cannabis market in 2021, with a market share of 87.1% (Grandview Research)
2. At the end of 2022, the North American cannabis industry market size was $15.2 billion (Research and Markets) 
3. The U.S. market size is predicted to reach $32.9 billion by the end of 2023 (Statista)
4. The U.S. will generate more cannabis revenue than any other country in 2023 (Statista)
5. The market’s growth rate is predicted to be 15.3% through 2030 (Research and Markets)
6. Revenue in the legal cannabis market is projected to hit $47.5 billion by 2030 (Grandview Research) 
7. 88% of adults in the U.S. believe cannabis should be legal (Pew Research Center)
8. 53% of investors who don’t currently own marijuana stocks would consider investing with federal legalization (Magnify Money)
9. Curaleaf is currently the largest cannabis company by market cap at $2.57 billion (CompaniesMarketCap.com) 
10. The cannabis extract segment has dominated the market since 2021, a trend expected to continue through 2030 (Allied Market Research)

Cannabis investor stats and demographics

Investors of all ages and genders are breaking into the cannabis market. Gen Z and Millennials make up the highest proportion of cannabis industry investors as well as cannabis product users. While fewer members of older generations invest in cannabis stocks, those who do tend to invest more money than younger generations. Additionally, most cannabis investors expect to hold their investments for one to six years. 

1. 43% of investors hold at least one cannabis-related stock or exchange-traded fund (ETF) (Magnify Money) 
2. 54% of Millennial investors report investing in cannabis/marijuana stocks (Magnify Money) 
3. 47% of Gen X investors report investing in cannabis/marijuana stocks (Magnify Money) 
4. 62% of Gen Z investors report investing in cannabis/marijuana stocks (Magnify Money)
5. Just 16% of Boomer investors report investing in cannabis stocks, but the size of their investments is typically larger than younger generations (Magnify Money)
6. 49% of cannabis investors are men and 35% are women (Magnify Money) 
7. Marijuana investors say they expect to hold for the medium- to long-term: 48% for one to three years, 28% for four to six years, and 8% for 10+ years (Magnify Money) 
8. 65% of cannabis investors are also users of medical marijuana or recreational cannabis (Magnify Money)
9. Gen Z women are the fastest-growing segment of legal cannabis consumers (Springbig)
10. Gen Z and Millennials split their investments fairly evenly between recreational and medical marijuana (Magnify Money)
11. Boomers are four times more likely, and Gen Xers are two times more likely, to invest in medical cannabis versus recreational cannabis (Magnify Money)

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Cannabis stats by state

The trend toward legal cannabis in America has continued over the past few years, with 37 states allowing recreational and/or medical marijuana use as of January 2023 (NCSL, 2022). Some states have a thriving cannabis market, while others are still in the process of opening their first dispensary locations. California has the largest market for cannabis in the U.S. by a wide margin. However, Illinois, Colorado, and Florida are gaining ground. When you’re considering investments in the cannabis industry, it’s helpful to be aware of current state regulations and expected changes as the status of legal cannabis continues to evolve across the nation. 

1. Recreational cannabis use is legal in 21 states, plus the District of Columbia and Guam as of January 2023 (US News & World Report) 
2. Medical cannabis is legal in 37 states, three territories, and the District of Columbia as of January 2023 (NCSL) 
3. Connecticut began adult sales in January 2023, Maryland is slated to allow legal adult use of cannabis products on July 1, 2023, and dispensaries in Missouri could open as early as February 2023 (The Hill) 
4. Oklahoma will vote on legalization in March 2023, and Ohio is considering a bill to legalize recreational cannabis use (The Hill) 
5. Arkansas, North Dakota, and South Dakota all rejected the legalization of recreational cannabis in the November 2022 election (The Hill)
6. Idaho, Kansas, and Nebraska are the only states that do not allow cannabis use of any kind, including CBD and low-THC cannabis products (The Hill)
7. California is by far the largest recreational cannabis market in the U.S., with well over $410 million in monthly sales (Marijuana Business Daily) 
8. Illinois and Colorado have both seen significant growth in recreational and medical sales in recent years (Marijuana Business Daily)
9. California will have the nation’s highest market share, at 20%, by 2025 (Statista)
10. Florida and Illinois are each predicted to reach an 8% market share by 2024 (Statista)

Cannabis cultivation 

Legal cannabis is currently the sixth most valuable cash crop in America, ahead of staples like potatoes and rice (Leafly, 2022). While popularity may be a good sign for investors, it’s worth noting that the value of cannabis stocks fell in 2022 (Leafly, 2022). Analyzing trends in cultivation, demand, and the value of marijuana stocks may be helpful when developing an investment strategy that includes cannabis. Wider legalization and increased production could continue to spur increased sales while also driving prices down across the cannabis industry.

1. As of late 2022, there are 13,297 active legal cannabis farms in the U.S. (Leafly) 
2. Legal cannabis is America’s sixth most valuable cash crop, at a $5 billion annual wholesale value (Leafly) 
3. The value of cannabis crops fell by $1 billion in 2022 as wider legalization lowered the price of marijuana (Leafly) 
4. California grows the most legal cannabis, with a wholesale value totaling $1 billion (Leafly) 
5. Legal cannabis production totaled about 2,834 metric tons of marijuana for recreational use in 2022 (Leafly)
6. The estimated demand for recreational cannabis is 12,000-15,000 metric tons (Leafly)

Legal cannabis sales statistics

The legal cannabis industry saw sales spike during the height of the COVID-19 pandemic. But sales are softening and some financing is starting to dry up as demand returns to pre-pandemic levels. And while revenue from recreational and medical marijuana is still in the billions of dollars, overall prices have taken a dip in the past year. Still, market predictions point to steady, long-term growth. Companies with high market caps include Canopy, Cronos Group, Tilray, Aurora Cannabis, and Sundial Growers Inc.

Medical marijuana sales

Medical cannabis sales are projected to grow as more states open dispensary locations and the federal government moves toward licensing cannabis research. And as medical marijuana gains popularity, Big Pharma may see a corresponding decline in market share. 

1. North America accounted for the largest global revenue share of medical marijuana in 2021, at 76.1% (Grandview Research)
2. Sales of medical cannabis reached $11.9 billion by the end of 2022 (Statista)
3. Sales of medical cannabis are predicted to reach $15.6 billion by 2026 (Marijuana Business Daily) 
4. Congress passed a medical marijuana research bill in late 2022. The Medical Marijuana and Cannabidiol Research Expansion Act would allow research universities and private companies to acquire U.S. Drug Enforcement Administration licenses to grow and handle cannabis for scientific purposes (Marijuana Business Daily)
5. The time between states legalizing medical cannabis and recreational cannabis is getting shorter (Marijuana Business Daily)
6. Reports show that every time a state legalizes medical marijuana, Big Pharma sees significant market share drops. Consequently, some well-known drug makers are lobbying against legalization and/or developing their own cannabinoid pharmaceuticals (Leafly)

Recreational marijuana sales

Recreational cannabis use is on the rise across the U.S. More and more companies are meeting consumer demand with a variety of options beyond marijuana flower, giving investors a broader range of opportunities to put money into the cannabis market. Consumption has expanded into a wide range of cannabis products, including beverages, edibles, vape pens, skincare, and more. When you’re researching your investment options, you may wish to take note of companies on the cutting edge of developing recreational marijuana products. 

1. The U.S. is projected to have around 50 million cannabis users by 2025 (Statista) 
2. Recreational cannabis sales reached $21.1 billion in 2022 (Marijuana Business Daily)
3. Legal recreational sales are projected to reach $25 billion by 2025 (Statista)
4. Sales of cannabis-infused beverages, edibles, vape pens, and pre-rolls grew 5-12%, while flower sales declined 8%, in 2022. (Flowhub)
5. In the U.S., Gen Z was the only age group to show marijuana sales growth in 2022 (Headset) 
6. Purchases for all legal age groups are returning to pre-pandemic levels after a rise in sales during 2020-2021 (Headset) 
7. Gen Z and Millennials report using recreational cannabis products instead of alcohol (Springbig)
8. Year-over-year cannabis sales are declining in mature markets like California, Oregon, Washington, and Colorado (Headset)
9. Average retail cannabis prices fell about 20% from 2021 to 2022 (Flowhub)

Marijuana’s economic impact

In 2022, the total economic impact of the cannabis industry was nearly $100 billion (Marijuana Business Daily, 2022). That includes workers in cannabis-related jobs from growers and budtenders to legal consultants, marketers, and bookkeepers. Tax revenue from the industry is funding public health and infrastructure initiatives at the state level. Overall, the industry is expected to continue having a positive impact on the local and federal economy.

1. In 2022, tax revenue from legal cannabis ranged from $18.9 million to $517 million per state, and over $11 billion nationwide (Urban Institute, Marijuana Policy Project)
2. The legal cannabis industry supports more than 428,000 jobs nationwide (Flowhub)
3. The total employment potential in a mature U.S. legal cannabis market is approximately 1.5 million to 1.75 million workers (Leafly) 
4. The total economic impact of the cannabis industry in 2022 was nearly $100 billion (Marijuana Business Daily) 

Investing in the future of the cannabis industry

Ready to start investing in legal cannabis? Stash can help you make a plan today so you can work toward building wealth for tomorrow. Like any kind of investment, the cannabis industry can be risky. But with the right approach for your risk tolerance level and financial goals, you might make cannabis investments a part of your diverse portfolio.  

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The post 56 Cannabis Industry Statistics to Know in 2023 appeared first on Stash Learn.

New Jersey was one of four states that legalized marijuana for recreational use during the 2020 election via ballot measures. And on April 21, 2022, the first cannabis dispensaries in the state opened. At those locations, consumers can purchase up to one ounce of marijuana, up to five grams of oils, resins, or concentrates, or up to 100 milligrams of edible marijuana-infused products. 

Increasingly, states are legalizing marijuana for medicinal and recreational purposes. Here’s the latest on cannabis laws across the U.S, and what those laws mean for the legal marijuana industry’s growth. 

Where marijuana is legal

In addition to New Jersey, Montana, Arizona, and South Dakota also voted to legalize marijuana for recreational use in the 2020 election. South Dakota’s courts, however, overturned the legislation. Marijuana for medicinal use is still legal in the state. 

California was the first state to legalize marijuana for medicinal use in 1996. In 2012, Washington State and Vermont became the first states to legalize the plant for recreational purposes. Today, cannabis is legal for recreational purposes in 18 states and Washington, D.C. Marijuana is legal for medicinal use in 37 states. 

Marijuana on the national level

On April 1, 2022, the House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. The bill aims to decriminalize the use of marijuana on a federal level, and would also expunge convictions for marijuana possession, while placing a sales tax on the plant. Proceeds from those taxes would reportedly be reinvested in communities most affected by the criminalization of marijuana. 

The bill will now go to the Senate, where it must receive 60 votes to pass into law. However, the Senate is divided along partisan lines, meaning it could be difficult to get enough votes to pass the Senate. Despite this standstill, roughly two-thirds of Americans support the legalization of marijuana nationally.

Investing in the legal cannabis industry

The legal cannabis industry includes companies that grow, package, and distribute marijuana and hemp, as well as cannabinoids such as THC, which is psychoactive, and CBD, which is not. The cannabis and hemp industries also include businesses that make chocolates, gummies, and oils containing cannabinoids. 

Additionally, businesses that support or make the materials used by cannabis businesses are part of this industry. These include agriculture machinery, packaging, dispensaries, and professional services companies, among others. Kush Bottles, for example, makes storage containers where people can keep legal cannabis. 

Although marijuana isn’t technically legal on a federal level in the U.S., you can still invest in cannabis. Some cannabis companies are listed on exchanges in the U.S. but operate out of places like Canada, where cannabis is legal. You can invest in single stocks of companies such as Aurora Cannabis, Canopy Growth, Cronos Group, and Tilray as single stocks on Stash. Corporate Cannabis, an ETF available on Stash, includes shares of Canopy, Tilray, and more.* 

Remember that a diversified portfolio should include investments in bonds, stocks, and exchange-traded funds across different sectors of the economy. Diversification can help you spread out the risk in your portfolio.

Find out more about the legal cannabis industry here.

The post How the Legal Marijuana Industry Could Change in 2022 appeared first on Stash Learn.

If 2019 is any indication, acceptance of marijuana for both medical and recreational purposes could continue gaining steam on both the state and federal levels.

In recent months, the House of Representatives took up two significant pieces of legislation related to cannabis legalization, while Illinois passed a law that would regulate cannabis the way the state currently regulates alcohol, among other developments. And approximately 18 states  are considering marijuana legislation in 2020, joining nearly a dozen others where cannabis is already legal for both recreational and medical purposes.

Read on, and we’ll recap where legalization stands.

Federal legislation

Not much can change without federal legislation, and most bills to legalize marijuana have been held up in Congress. That is, until recently.

In September, the House passed a bill that would allow cannabis producing-companies to access banks, which they currently can’t do

And in late November, 2019 the House Judiciary Committee passed a bill on Wednesday, November 20 that could lead to marijuana becoming legal on the federal level. The bill now heads to the full House for a vote, although it’s uncertain when that will happen.

Although several states currently allow recreational use of marijuana—also known as cannabis—and the majority of states have approved its use for medical purposes, marijuana is classified federally as a Schedule I controlled substance, lumped together with outlawed drugs such as LSD, heroin, and peyote.

Nevertheless, this marks the first time a cannabis legalization bill has ever passed a congressional committee. While the bill may pass the full House, it’s unlikely to pass in the Senate, according to reports.

The states and public opinion

Marijuana is currently legal for recreational use in 11 states, and 33 states have laws that allow it for medical purposes.

Two-thirds of U.S. citizens support the legalization of marijuana, according to recent research by the Pew Research Center.

About the marijuana industry

The marijuana industry is expected to add 200,000 new jobs in the U.S. by 2020, according to New Frontier Data, which provides research on the cannabis market.

Growth is expected for a long list of businesses, such as the cultivators and packagers of the plants, dispensaries for medical and recreational weed, not to mention companies creating products that use cannabis byproducts called CBDs. CBDs are non-pyscho-active derivatives of cannabis, which can be used for a variety of purposes, including helping with inflammation, chronic pain, and depression.

Companies are also capitalizing on industrial uses for cannabis, including the production of hemp, which can be used to make fabrics and textiles, as well as being used as additives to health food and body care products.

And it all makes for big business. Total legal sales of cannabis were about $10 billion in 2017, and are expected to grow to $24.5 billion by 2021, according to reports.

Investing in legal marijuana

There are now nine exchange traded funds (ETFs) dedicated to cannabis. These funds tend to invest in large public companies either developing medical uses for marijuana, or that tangentially support growing and manufacturing legal cannabis.

Stash allows you to invest in some of the leading legal cannabis companies through its Corporate Cannabis fund. The fund follows the Prime Alternative Harvest Index, which currently invests in 37 companies involved in the legal market, including Aurora Cannabis, Canopy Growth, Cronos Group, Green Organic, Tilray, and others.

Stash also offers Aurora Cannabis, Canopy Growth, Cronos Group, and Tilray as single stocks.

Investing in legal cannabis stocks, whether recreational or medical, can carry more risks than other stocks. In general, marijuana-related stocks can be volatile, meaning share prices can move up or down quickly. These stocks are some of the most volatile on Stash, and there is also some talk of pot stocks being in a market bubble.

Remember: Investing in the stock market can always involve losing money.

Stash recommends following the Stash Way, which includes regular investing, diversification, and planning for the long term.

The post Could 2020 Be the Year of Legal Marijuana? appeared first on Stash Learn.

The House Judiciary Committee passed a bill on Wednesday, November 20 that could lead to marijuana becoming legal on the federal level. The bill now heads to the full House for a vote.

Although several states currently allow recreational use of marijuana—also known as cannabis—and the majority of states have approved its use for medical purposes, marijuana is classified federally as a Schedule I controlled substance, lumped together with outlawed drugs such as LSD, heroin, and peyote.

This marks the first time a cannabis legalization bill has ever passed a congressional committee. While the bill may pass the full House, it’s unlikely to pass in the Senate, according to reports.

What does the bill say?

Although the bill could make cannabis legal nationally, it reportedly leaves specific policy around legalization to the individual states, including how they want to enact the law, and how to clear the records of people convicted of low-level offenses related to pot possession. The bill would also impose a 5% sales tax on marijuana that would be used to support communities most affected by current laws outlawing marijuana.

The bill moves next to the Democrat-controlled House, where passage is likely, according to some experts. (In September, the House passed another bill that would allow cannabis producing-companies to access banks, which they currently can’t do.)

The fate of the legislation seems less certain once it moves to the Senate, which is controlled by Republicans who for the most part don’t favor legalizing marijuana. Senate Majority Leader Mitch McConnell, for example, is generally opposed to federal legislation legalizing cannabis.

More about Marijuana

Marijuana is legal for recreational use in 11 states, and 33 states have laws that make it legal for medical purposes.

Two-thirds of U.S. citizens support the legalization of marijuana, according to recent research by the Pew Research Center.

The marijuana industry is expected to add 200,000 new jobs in the U.S. by 2020, according to New Frontier Data, which provides research on the cannabis market.

Growth is expected for a long list of businesses, such as the cultivators and packagers of the plants, dispensaries for medical and recreational weed, not to mention companies creating products that use cannabis byproducts called CBDs. CBDs are non-pyscho-active derivatives of cannabis, which can be used for a variety of purposes, including helping with inflammation, chronic pain, and depression.

Companies are also capitalizing on industrial uses for cannabis, including the production of hemp, which can be used to make fabrics and textiles, as well as being used as additives to health food and body care products.

And it all makes for big business. Total legal sales of cannabis were about $10 billion in 2017, and are expected to grow to $24.5 billion by 2021, according to reports.

The post Why Marijuana Just Took a Step Closer to Legalization appeared first on Stash Learn.

Follow the Stash Way!

Remember: All investing involves risk. It’s possible for stocks, bonds, and other securities to lose their value due to changing market conditions.

Stash recommends following the Stash Way, which includes regular investing, diversification, and investing for the long term.

Investing for the long term can help insure that you aren’t locking in your losses due to short term fluctuations in the price of a stock.

Also, check out Portfolio Builder, a new tool that can help you instantly build a diversified portfolio according to your risk profile, as you start your investment journey.

Portfolio Builder portfolios are designed to follow the Stash Way.

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Stewart and Canopy, one of the largest cannabis companies in the world, will jointly develop a line of CBD products derived from hemp. CBD (cannabidiol) is a non-psychoactive chemical compound found in cannabis, and is often used to treat health issues. The partnership will develop CBD-based products for both humans and animals.

The CBD market is expected to be a $20 billion dollar industry by 2020.

The partnership will also include Sequential Brands Group, which owns numerous fashion and activewear brands including Martha Stewart Living Omnimedia, the media company Stewart sold to Sequential in 2015 for $353 million. So far, it’s unclear what role Sequential Brands will play in the partnership.

More details:

• Stewart will join Canopy and Sequential in an advisory role, creating a whole new line of products.
• Earlier this year, Canopy was given the green light to start large-scale hemp production in the U.S., and announced that it would start producing hemp at a farm in New York state.
• Canopy hopes Stewart’s brand and business acumen can help as it seeks to get a foothold in the U.S. CBD and cannabis markets.

What’s behind the Martha Stewart-Canopy partnership

Canopy Growth, based in Canada, is seeing success in the newly-legal Canadian cannabis market, with its latest earnings report (Q3 2019) boasting a 282% year-over-year increase in revenue. Martha Stewart’s name is instantly recognizable to millions of consumers in the U.S., and Canopy is hoping to leverage her brand as its products become available in the states, according to the company’s press release.

Stewart is famous for her no-nonsense lifestyle brand and television content. She previously built her business as a TV personality, focusing on content related to cooking and weddings. That’s what makes this partnership particularly interesting—it’s a big leap from a home and garden-focused business to the cannabis industry.

But it could be a move that helps further bring CBD and cannabis products into the mainstream in the U.S.

For Stewart, who’s fond of saying, “it’s a good thing,” the Canopy partnership may be just that.

You can invest in the cannabis industry on Stash.

The post Hemp Comes Home: Why Martha Stewart is Partnering with Marijuana Grower Canopy appeared first on Stash Learn.

The Canadian company, which produces cannabis products, recently received a green light earlier this week for large-scale hemp production in New York State. It will be the company’s first hemp farm in the U.S.

Shares of Canopy jumped 11% on Tuesday, January 14, following the news.

Hemp vs. cannabis vs. CBD

Hemp is a non-psychoactive cousin to marijuana (meaning it doesn’t get you high) and it’s in the same cannabis plant family. Its fibers can be used for food, clothing, even building materials.

But its most popular use in recent years is CBD oil, a derivative that increasing numbers of consumers are using for various health-related issues such as anxiety, muscle aches and pains, and insomnia. CBD oil is expected to be a $20 billion dollar industry by 2020.

Hemp, and CBD oil derived from it, were legalized in the U.S. in December, paving the way for Canadian producers to enter the country. CBD oil derived from marijuana plants has not been legalized by the federal government.

New York, where legislators are considering making recreational marijuana legal, created something called the Industrial Hemp Research Initiative to develop the hemp market in the state.

More about Canopy Growth

Canopy is the largest publicly traded cannabis company in the world. In addition to hemp products, it produces medical marijuana extracts.

The company said in a press release that it plans to invest up to $150 million in its New York operations.

Constellation Brands, the manufacturer of Corona beer, invested $4 billion in Canopy in August, 2018.

Recreational use of pot is now legal in 10 states in the U.S., although it’s still illegal on the federal level. Recreational use of marijuana is legal throughout Canada.

The post One of the World’s Largest Pot Companies Is Coming to the US appeared first on Stash Learn.

What you need to know:

• The $4 billion investment raises Constellation’s ownership stake in Canopy to 38%, with the option to increase it to 50% within the next three years.
• Canopy is the first and largest cannabis company to trade on the New York Stock Exchange.
• A large investment in the cannabis industry from a big business like Constellation might signal that marijuana is officially entering the mainstream.
• “Through this investment, we are selecting Canopy Growth as our exclusive global cannabis partner,” Constellation Brands CEO Rob Sands said in a statement.

More details:

Marijuana is becoming a mainstream commodity, and with relatively few big businesses willing to wade into the cannabis market thus far, Constellation’s move is a big indicator that the corporate world sees it as a promising market.

Likewise, governments are getting on board, too. Several U.S. states have legalized marijuana, and Canada will fully legalize cannabis later this year, becoming the second country in the world, after Uruguay, to do so.

Constellation’s move will make a splash, but it’s not the first company in the alcohol industry to wade into the cannabis industry. Molson Coors is also looking at the cannabis industry as a potential source of growth as beer sales have slowed. The company inked a deal with marijuana company Hydropothecary Corp. to create marijuana drinks in early August, and another beer company, Heineken, is also working on THC-infused brews through its Lagunitas brand.

The post Beer Maker Bets $3.8 Billion on Big Marijuana appeared first on Stash Learn.

Epidiolex, a medication developed to treat two forms of childhood epilepsy, contains a chemical compound found in the cannabis plant, called cannabidiol (commonly referred to as CBD).

It’s the first time the FDA has approved a drug that contains a substance derived from marijuana.

What you need to know:

• The Food and Drug Administration (FDA) approved Epidiolex to be sold in the U.S.
• The drug helps treat seizures generally associated with two of the rarer and most severe forms of epilepsy, Lennox-Gastaut syndrome, and Dravet syndrome.
• It’s the first time the FDA has approved a drug that contains a substance derived from marijuana.
• The drug is produced by U.K.-based GW Pharmaceuticals.
• Information regarding availability and pricing will be announced by the end of summer, according to the manufacturer.

What’s CBD?

CBD, the primary chemical component in Epidiolex, comes from the cannabis plant.

CBD has been found to have therapeutic and medical applications and does not have any associated psychoactive effects, unlike its chemical cousin, tetrahydrocannabinol (THC). THC is the psychoactive compound in the plant, which produces the trademark “high”.

In addition to seizures, CBD is used to treat conditions like multiple sclerosis, Parkinson’s disease, and rheumatoid arthritis.

A message from the FDA commissioner:

“This product approval demonstrates that advancing sound scientific research to investigate ingredients derived from marijuana can lead to important therapies,” FDA Commissioner Scott Gottlieb said in a statement.

“The FDA will continue to support rigorous scientific research on potential medical treatments using marijuana and its components that seek to be developed through the appropriate scientific channels,” he added.

What’s next for marijuana and medicine?

The FDA giving Epidiolex the go-ahead for U.S. sales could, however, open the door for other cannabis-derived drugs to also earn government approval. The approval marks a historic first for the U.S. government.

Read more: If Cannabis is Illegal Under Federal Law, How Is It Legal to Invest In It?

Also, the news comes on the heels of the Canadian government’s passage of legislation to legalize marijuana for recreational use nationwide. Several U.S. states have also legalized cannabis, though it’s still federally prohibited.

Want to learn more about companies leading the charge in the marijuana industry? Check out these investments on Stash.

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The Canadian government took a giant leap toward legalizing marijuana and is poised to become the second country in the world to end cannabis prohibition on a national scale.

Bill-45, the Cannabis Act, has completed its journey after more than a year of working its way through Canada’s legislature. The effort is supported by Canada’s Liberal party and Prime Minister Justin Trudeau, and was also a key part of Trudeau’s campaign platform in 2015.

Uruguay became the first country to legalize marijuana for recreational use in 2013, and many other countries have decriminalized it, though bar sales. In the U.S., nine states have legalized marijuana for recreational use, though it remains illegal under federal law.

Canada will become the first G7 country to cross the reefer Rubicon.

Canada gives legalization the green light

Under the new legal framework, Canada’s new regulations will allow people ages 18 and over to purchase marijuana from licensed stores. They will also be able to grow their own at home, except where prohibited by local laws. Stores selling cannabis for recreational consumption could open as soon as August or September.

Ultimately, how and when those stores open to the public will be up to individual provinces and territories.

But possible dangers to public health are on the government’s radar, too. It’s expected that the Canadian government will set up marketing and public-relations campaigns to educate and inform about the effects of marijuana use—similar to what you might see in the U.S. concerning tobacco.

Seeing green

Proponents of legalization in Canada look at the potential financial benefits—specifically, that recreational sales could generate revenues of more than $4 billion per year, according to a report from professional services firm Deloitte.

All told, it could be an economic boon for Canada. Entrepreneurs should get the chance to jump into a once-blacklisted market, thousands of jobs will likely be created, and the government should reap the benefits of increased tax revenues.

In the U.S., legal marijuana has created more than 123,000 jobs, according to industry data.

And as far as taxation, government officials hope to levy a 10% sales tax, or roughly $1 per every gram sold—whichever is greater.

How you can capitalize

A G7 country fully legalizing cannabis is a first, and will likely act as a shot in the arm for the fledgling marijuana industry. A number of companies, some publicly-traded, already work in and around the industry, but they’re still considered to be treading on risky ground; as has investing in those companies.

Examples include Cronos Group (CRON), Aurora Cannabis (ACB), and GW Pharmaceuticals (GWPH).

In the U.S., for example, marijuana companies operating in states where cannabis is legal are still largely shut out of the traditional banking system, and are under threat of shutdown from the federal government.

But some of the world’s largest companies operate out of Canada, where laws were more lax even before legalization. Now, with an end to national prohibition, companies and investors have a safe space, legally speaking, in which they can conduct business.

Though the industry is still on shaky ground and therefore, somewhat risky, you can invest in the marijuana industry on Stash.

The post In Canada, Marijuana Prohibition is About to Go Up in Smoke appeared first on Stash Learn.

In casual conversation,  TV personality Gayle King earlier this week told Ellen DeGeneres on her talk show that Winfrey likes to smoke pot sometimes.

“Oprah has also smoked a little marijuana, too, I don’t mind saying,” King, a friend of Winfrey’s, reportedly told DeGeneres. This is, of course, second-hand information and Winfrey has not weighed in on King’s comments or confirmed them. (She did admit to smoking some marijuana in the 1980s, according to reports.)

Still, Winfrey has had a profound effect on numerous industries, and even this second-hand information could cause a shift in thought about the growing pot industry.

In fact, the timing of King’s comments comes not long after Senate Minority Leader Chuck Schumer’s announcement in April that he plans to introduce legislation that would make marijuana legal in all 50 states. Taken together, the comments could portend that pot is moving into the mainstream.

“The time has come to decriminalize marijuana,” Schumer said in a statement. “My thinking—as well as the general population’s views—on the issue has evolved, and so I believe there’s no better time than the present to get this done.”

The Oprah Effect

Whatever Winfrey does, she tends to do in a big way. And her Midas touch has had a huge impact on numerous industries.

Winfrey, whose rousing Golden Globes speech earlier in the year prompted speculation that she may soon be running for president, is worth close to $3 billion. In addition to making frequent appearances in films, such as the recent movie adaptation of Wrinkle in Time, Winfrey is the owner of multi-media production company Harpo Productions, which includes television network Oprah Winfrey Network (OWN).

In 2017, Winfrey sold a $70 million stake in OWN to Discovery. She also reportedly invests in real estate, according to reports.

When she announced a partnership with diet company Weight Watchers in 2015, it sent the company’s stock soaring. At the time, she bought a 10% stake in the company worth $42 million, and shares of Weightwatchers doubled soon after, according to reports.

Winfrey’s Midas touch has had a big impact on numerous industries.

The pot industry is growing

The marijuana industry is expected to add 200,000 new jobs in the U.S. by 2020, according to New Frontier Data, which provides research on the cannabis market.

Total legal sales of cannabis were about $10 billion in 2017, and are expected to grow to $24.5 billion by 2021, according to reports.

There are now also 29 states that allow doctors to prescribe cannabis for medical purposes, which can include helping to alleviate nausea related to chemotherapy, stimulating appetite for people who are chronically ill and curing insomnia.

Check out our podcast about the marijuana industry.

Changing attitudes

Meanwhile, more and more Americans are becoming pot-friendly. Nearly two-thirds of Americans say marijuana should be legal, according to a 2017 Gallup poll. That’s up from 60% in 2016, and just 34% in 2002.

Growth is expected for a long list of businesses, such as the cultivators and packagers of the plants, dispensaries for medical and recreational weed, not to mention companies creating products that use cannabis byproducts called CBDs. CBDs are non-pyscho-active derivatives of cannabis, which can be used for a variety of purposes, including helping with inflammation, chronic pain, and depression.

Companies are also capitalizing on industrial uses for cannabis, including the production of hemp, which can be used to make fabrics and textiles, as well as being used as additives to health food and body care products.

“There are millions of customers who are excited about legal cannabis,” David Rheins, the chief executive, and co-founder of the Marijuana Business Association, a trade group devoted to the cannabis industry, told Stash recently. “[The industry] is getting bigger and bigger and it’s not going to stop.”

The post Could the ‘Oprah Effect’ Change America’s Attitude Toward Marijuana Legalization? appeared first on Stash Learn.

How is it, then, that the industry has been allowed to take root? And how, as an investor, are you allowed to well, invest in it?

How can I legally invest in the business of cannabis?

Those who wish to legally invest in the business of cannabis have options. They can invest in legal cannabis companies that are registered in other countries (such as Canada), or invest in companies that don’t directly interact cannabis plants — they don’t grow, process, or distribute marijuana.

I’m confused. I thought marijuana was an illegal drug.

Marijuana is illegal at the federal level, as it’s a Schedule 1 controlled substance. But for many years, it’s existed in a sort of legal gray area in many states.

Using marijuana for medicinal purposes, for example, is legal in 29 states. In eight states (and Washington D.C.) it’s been legalized for recreational consumption. These state laws are at odds, however, with federal law.

Whether or not the federal government takes action against industries operating within and complying with these states laws has changed from administration to administration. Under President Obama, for example, federal law enforcement agencies were instructed not to interfere with the industry, given that state laws were being followed.

The Trump administration, on the other hand, reversed that policy.

So, companies in the U.S. working in the cannabis space are at risk of being fined or shut down as working with cannabis breaks federal law.

Why are many cannabis companies listed on Canadian exchanges?

While some publicly-traded cannabis firms are based in the U.S., they’ll list shares on international exchanges as a response to concerns about federal crackdowns or legal intervention. Many cannabis and cannabis-related companies list their shares on Canadian exchanges, for example, because Canada has announced plans to fully legalize marijuana.

As for publicly-traded domestic companies operating in the marijuana industry, many play a supporting role in the marijuana industry. Kush Bottles (ticker: KSHB), for example, is a U.S.-based company that makes storage containers for marijuana, but doesn’t produce or process it.

All of the above is very different from investing in the farming, growing, or distribution of marijuana. And that difference decreases the risk that the company could be shut down or fined by the federal government.

Can Americans legally invest in publicly-traded stocks and funds related to the business of cannabis?

Yes. There are companies both here and abroad that engage in the lawful creation, marketing or distribution of products that utilize cannabinoids as an active ingredient. This can include tobacco, fertilizers, plant foods, pesticides, as well as real estate and personal health products. It’s always a good idea to do your due diligence and check a stock or fund’s prospectus before purchasing an investment.

Learn more about investing in the business of cannabis.

The post If Cannabis is Illegal Under Federal Law, How Is It Legal to Invest In It? appeared first on Stash Learn.

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The business of marijuana is growing up.

Nearly two thirds of Americans say marijuana should be legal, according to a 2017 Gallup poll. That’s up from 60% in 2016, and just 34% in 2002.

In the U.S, there are now 29 states that allow doctors to prescribe cannabis for medical purposes. Companies are exploring industrial uses for lubricants, fabrics and textiles, as well as plant-sourced ingredients for beauty and body care. Cannabis is also a real estate play — yes, real estate.

At the same time, the cannabis business faces a lot of legal and logistical roadblocks. And while the tide is slowly turning, there are forces (the Federal government and big banks) that are far from convinced that marijuana should be a financial force in America.

In this episode, David Rheins, the founder and executive director of the Marijuana Business Association, tells all about the promise and challenges of this growing sector.

Send us your questions at teachmehowtomoney@stash.com and we’ll try to answer them in a future episode.

Ready to start investing? Sign up for Stash and then enter the promo code “PODCAST.” You’ll get $5 to get started on your financial journey. 

The post Podcast: Learn About the Business of Marijuana with David Rheins appeared first on Stash Learn.