Cannabis’ biggest names Compete for their share of $17 billion industry at Cannabis conference.


Posted February 15, 2019 by syracusegroup

The competition for one of the largest emerging markets has showed no signs of slowing down this week at the NCIA CannaVest conference.

 
The competition for one of the largest emerging markets has showed no signs of slowing down this week at the NCIA CannaVest conference. Roy Bingham BCD Analytics CEO said during the panel discussion “Looking forward we see tremendous growth continuing, I can’t think of a meaningful sized industry in which one has the confidence in that sort of growth rate except when we go back to the early days of the internet.”
BCD analysts have made a prediction that the global legal cannabis sector in 2018 reached a very respectable $12.2 Billion USD. BCD estimates that spending on legal cannabis both medical and recreational will continue to grow into 2019 with a target set at $16.9 billion up to $17.1 billion. Recreational sales are set to be the major fuel to the increase of market growth, with legalization taking place all over the globe, we could see even more than estimated. The anticipated growth will be certainly easier for companies that have already established themselves in the industry.
CEO of Sira Naturals Michael Dundas, told our analysts “The barriers to entry in regulated cannabis are extraordinarily high — capital barriers, expertise barriers, After building our business — and we started out as small as you can get — it just struck us as very, very difficult.”
Paul Penney, MD and senior research analyst at Northland capital markets, recently said “Capital in the cannabis space is quite expensive because you don’t have the option to go through traditional banking means,”
With big moves happening in the cannabis industry Scott Fortune, research analyst at Roth Capital said that their firm is beginning to see the huge potential the cannabis sector, with financing from new California companies who are looking for investment capital, although they will be using a cautious approach as cannabis is still a federally illegal substance in the US.“We’ve been seeing for years this industry starting to mature, but we’ve been conservative because of the regulatory legal framework,” Fortune said.
President of Vertical Companies Smoke Wallin, commented saying “With the 2018 Farm Bill that got passed and the president signed into law in December, that allows us to basically take all hemp and CBD assets, separate it from the cannabis side, and really have access to mainstream institutional capital and the ability down the road to take that company public,” he continued to say “We’ve raised going on $60 million now for our business, But it’s all been individuals, high net worth, family offices and individuals who write checks, which has been great, but it’s a lot of work to get that much money with those small checks.”

With huge growth in the cannabis sector, and many small business’ trying to get on board, this is going to open a huge new opportunity for larger scale cannabis companies to acquire these smaller companies and increase their exposure to the rapidly growing sector. Our analysts and researchers are watching the industry very closely, as they know that the cannabis sector is set to take off. Investors are also watching the space, as there is huge opportunity for very respectable portfolio growth.

Sandra Chan –Syracuse Group
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Last Updated February 15, 2019