For the second time in a week, The Wall Street Journal discussed investing in medical marijuana. The article reports that, “the industry is expanding as more states decriminalize the use of pot to treat pain, MS-related muscle spasms and other conditions. And that’s attracting private investors and raising the possibility of public offerings.”
For General Cannabis (OTCPK: CANA), that IPO is already completed and in March, the company filed with the SEC for a second $20 million public offering. These steps, alongside personnel increases and new offerings like the company’s Daily Deals--which inform consumers of locations where they can find discounted medical marijuana--continue to solidify their role as a frontrunner in the emerging sector.
The article mentions challenges to the industry, for instance, the cloudy legislation that has made investors wary in the past. For General Cannabis though, these obstacles have been deflected. The Company does not involve itself in the actual buying or selling of medical marijuana, but rather operates in the ancillary, mostly tech-driven pockets of the industry. The company's websites, WeedMaps.com and CannaCare.com, serve as a means for consumers to find local dispensaries and fulfill their medicinal cannabis needs. They also assist the dispensaries in managing transactions with their credit card processing services. In March, the company reported over $2.2 million in processing volume, up from $1.7 million the month prior.
On the whole, the Medicinal Cannabis industry has an estimated value between $35 billion and $45 billion as reported by CNBC, and General Cannabis, through their technology and data-driven business strategy, has emerged as an innovator and market leader within it. Employing various technological platforms, search engine optimization (SEO) strategies, and proprietary software applications the company is designed to revolutionize the medicinal marijuana market.
The Wall Street Journal article asks the question, “Would you park part of your 401k in pot?” and given the size and strength of the medical marijuana market and corporate backing, an overwhelming amount of investors are opening up to that thought.
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