Cannabis - Industry

• Companies that support the market may also do well
• Fertilizer
• Indoor growing & lighting systems

• Cannibas has two primary compounds of interest (amongst hundreds of cannabinoids)
• THC
• Psychoative Componenet
• what gives people a "high
• THC = Tetrahydrocannabinol
• CBD
• Medicinal Benefits
• Therapeutic Properties
• No Intoxicating Effects
• CBD  = Cannabidiol
• Not addictive
• The Cannabis plant contains over 100 different cannabinoids
• Cannabinoids are chemical compounds that react with human cannabinoid receptors (immune and nervous system receptors)
• There are many strains of cannabis (like wine)
• Some are cheaper and some are more expensive
• Some are speciality strains and can are rare
• There are many use cases:
• Medical
• Used since ancient times  (2700BC China)
• Modern Pharmaceutical companies are making drugs based on CBD componenets
• Recreational
• Industrial
• Therapueutic

• Canadian companies are getting a head start over US companies (2018)
• It is legal for them to grow and sell at a federal level in Canada (vs. illegal in the US)
• They are gaining a foothold before US companies (like they did with Alcohol during prohibition)
• Market is expected to increase 10x after legalization
• Canadian companies also export the product to other countries

• Gradual Legalization of Cannabis in the US, Canada and Europe has lead to a growth boom in the late 2010s
• Fastest growing group of users in the US is senior citizens
• Created mad rush to build numerous businesses:
  • Companies that grow cannabis
  • Companies that market branded cannabis products
  • Cannabis infused foods
  • Cannabis infused drinks
  • Cannabis retail stores
  • Medical-related cannabis products

  
  

• Chronic Pain
• Nervous Disorders
• Nausea
• Weight Loss
• Mental Illness

United States Legality

• In 1600s Hemp was an industrial crop
• In 1700s it was starting to be used medicinally
• In 1800s it was added to a list of pharmaceuticals (help with vomiting & opioid withdrawl(
• In 1900s it started to be used recreationally
• In 1925 states started to outlaw it
• In 1970 it was listed as a schedule 1 Drug
• High abuse potential
• No known medical use
• No safe dosage
• In 2000s the states are starting to legalize, but the Federal government still outlaws it
• states see the benefit from a tax and growth perspective
• this creates problems with having it go across state lines - has to be grown & sold in-state
• federal banks won't touch money (it's an all cash business)
• no patents/trademarks/contracts are enforceable
• no expenses are tax deductive (you can't deduct things the fed deems illegal)

• The FDA requested that the DEA remove CBD from any classification under the Controlled Substances Act (2018)
• The DEA left CBD as a Schedule 1 Drug
• Problems With Legalization
• There is not a great way to test is someone (drivers) is under the influence
• Federal Criminalization has hindered formal research studies - makes it hard for doctors to prescribe
• Alcohol sales will drop (substitution effect)
• Benefits of Legalization
• The illicit/illegal market (and associated crime) is dropping