If one thing has become clear about medicinal cannabis in recent news coverage, it’s that it has plenty of public support. First, there was the petition for legalization that made its way to the top of the list of topics the White House promised to address, and more recently, the Los Angeles Times addressed the growing strength of the industry. Attempts by local governments to assail medical marijuana have been easily overcome by dispensaries according to the piece. The ease with which the medical marijuana companies are able to overcome the challenges of the government represents their economic resilience and the high level of interest in the local communities.
“As cities struggle with the dire financial problems,” writes the Los Angeles Times, “many dispensaries are feeling anything but a budget crunch.” The strength of the industry and the regional support allow dispensaries and doctor’s offices to continue to operate effectively and trounce the fickle attempts of local lawmakers to reverse previously approved decisions made by voters.
Not only is the popularity of medical marijuana protecting the businesses from the whims of local governments, it’s also creating jobs in communities across the 16 states where it is legal, and helping drive ancillary businesses to major profits.
General Cannabis Inc. (CANA) most recent revenue is proof of the latter. The company, a pioneer within the emerging sector, that recognized the fiscal potential of medical marijuana early on, has successfully increased their year-over-year revenue by 106 percent. A technology-based Internet marketing services company, General Cannabis credits much of its growth to their vertical finder website technology run by WeedMaps Media. WeedMaps.com, acts as a dispensary locater, complete with user reviews and daily deals from nearby dispensaries. With the help of GPS technology, the site enables visitors to determine the dispensary with the qualities that best suit their needs.
Judging by their traffic, which was as high as 8.5 million page views in August, the demand for this sort of website is significant. The success of General Cannabis, which earned $4.1 million in revenue for the quarter and $10.4 million for the first nine months of the year, represents the investment opportunities within the industry.
While some investors may have been concerned about an industry that only a few years ago seemed slightly tenuous, attitudes are changing. The ability for medical marijuana dispensaries and related businesses to continue to generate major revenues during a weak economy is a unique investment advantage. As the LA Times points out, their deep pockets also insulate them somewhat from indecisive local governments that could eat into their profits. With purses that increasingly protect their cause, medical marijuana companies, are seemingly stronger than ever before.