Strains like Berner’s Girl Scout Cookies are facing a complete shut down once the plant is legal federally which will drastically inhibit growth. The Oregon Liquor Control Commission reviewed 500 cannabis names and deemed 20 product names too close to popular products, they also remove any names that blatantly refer to drugs like LSD and Green Crack. Along with shaping the weed world to appeal to the general public they are unknowingly creating a more fortuitous future for their state’s cannabis industry. Using this logic Oregon companies might be safer to invest in than Colorado companies at this point in time.
Advertising and Banking
Another issue that is born from the national division on cannabis is that no legal companies can advertise nationwide. Cannabis businesses are having to take a grassroots approach to marketing which almost always relies on social media, blogging, and other online marketing to attract their tourism sector. There was also an onslaught of advertising laws put in place during the first year or two of recreational cannabis that forced companies to trash massive marketing buys with no ROI. We would suggest doing a bit of research into the online presence of the company to see if their marketing campaign appeals to a wide range and has optimal engagements.
Similarly it’s hard to find banks that will work with the marijuana business because of the distinction between federal and state law. While certain federal judges are working to get banks shut down that are working with the industry it’s important to invest in a company that has all of their banking ducks in a row. Though this isn’t true of everyone working in legal pot some people are illegally handling the gray area of cannabis banking. Before investing be sure that the marijuana company isn’t fraudulently handling their profits.
Possible Fraud
Two years ago when cannabis companies first started going live in the stock exchange an Investor Alert went out on the securities and Exchange Commission Website that warned investors about possible fraud in the marijuana industry. Those who partake in fraud are comfortable in newer sectors like legal cannabis. For this reason it is imperative that ample research is done before the final decision is made.
Essentially this whole list rests upon one idea. Find a cannabis company that has foresight into the labyrinth that is the state and federal gray area. As always we must do our research before making a new investment but perhaps for the next 10 years we should do a bit more than that even.
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