With the marijuana industry booming there are a huge number of innovations that are just beginning and a wide number of entrepreneurs and businesses who are entering the industry. 2018 will see a number of winners and losers but those who have niche businesses and those who are good at what they do are set to make a lot of money in a market that has been prohibited since 1937. North Michigan University recently announced that it is launching a new marijuana related degree and others will soon follow. Marijuana companies and research outlets are going to need plant chemistry specialists, which is what the degree is geared towards. And they are not the only university who is beginning to veer towards the new marijuana market, as seen bya project recently coming to fruition at the University of Virginia.

UVa Hemp Harvest

The University of Virginia has completed its first successful harvest of hemp plants in collaboration with a private plant biotechnology company, “22nd Century Group”. The harvest, coming after the first year of a three year, $1.1 million sponsored research agreement between UVa and the company, is one of a number of private-public partnerships across the USA investigating hemp and medical marijuana. Michael Timko wants to renew Virginia as a leading producer of hemp and to restore land depleted by tobacco and mining. According to the biology professor at the University of Virginia:

“The idea is, why should we be importing things from overseas when we could be growing it here…Plus, it creates new sources of revenue for farmers.”

Indeed, it makes lots of sense to produce and research hemp locally instead of importing it from overseas. And it will generate incredible amounts of revenue for local farmers. The danger with marijuana legalization as it stands is that big pharmaceutical complexes and other huge companies will come in, establish monopolies and could cause serious disruptions in the industry. Given the sheer amount of money to be made, it is only natural for these types of companies to establish themselves. This is what their aim is, and it is what they do. The pharmaceutical companies are not simply going to wrap up their operations and quit as marijuana steals all of their clients. They could possibly establish strains of marijuana with an additive thrown in, brand it as superior, get people addicted, patent it and make it incredibly expensive, as they have been doing for decades in the pharmaceutical industry. This is why it is so important that people always have the option of growing their own strain of marijuana from the comfort of their own home without any interference. This way, if the government or private marijuana strain is truly of a sufficient quality, people will purchase it.

Wonderful Hemp

22nd Century Groupis also working with the University of Virginia to develop medical marijuana and cannabinoid extraction processes for medical and therapeutic use.Industrial hemp, although the same species as marijuana, is a distinct strain that has lower concentrations of the psychoactive agent known as THC, making it less useful for patients but with qualities that make it suited for industrial purposes. Hemp is also used to make nutritional supplements, paper, rope and oils. Hemp is an easy plant to grow, but due to a century-long ban it is difficult to find varieties suited to the climate in Virginia. Hemp is one of the most versatile substances on the planet and has been used by all nations for centuries. The book written by Jack Herer “The Emperor Wears no Clothes” (1985) goes into the ban on hemp in detail, including its uses and importance. The use of hemp can also have a number of positive effects across the globe:

“If all fossil fuels and their derivatives, as well as trees for paper and construction were banned in order to save the planet, reverse the Greenhouse Effect and stop deforestation; then there is only one known annually renewable natural resource that is capable of providing the overall majority of the world’s paper and textiles; meet all of the world’s transportation, industrial and home energy needs, while simultaneously reducing pollution, rebuilding the soil, and cleaning the atmosphere all at the same time… and that substance is — the same one that did it all before-Cannabis Hemp”( Jack Herer, The Emperor Wears no Clothes)

A Ban on Sanity

Unfortunately, hemp is still banned in the USA, the only nation in the world where hemp is classified as a schedule 1 drug. This means that it is under high levels of regulation despite the possible capability of all the above; supplying the planet with all of its resources and removing the need for deforestation and oil, as well as pretty much solving many of the world’s medical problems including addiction to opiates. Thankfully, as evidenced by this recent project in UVa, it seems that companies and institutions are once again looking into the uses of hemp. Many have speculated that the reason that the Federal government refuse to declassify marijuana is because of its strong relationship with the oil industry. Were hemp to do all that it is supposed to do, it would result in a sharp decline in the price of oil, which the American Empire has based its infrastructure on.

In addition to UVa, the department currently has agreements with James Madison University, Virginia State University and Virginia Tech to conduct research in industrial hemp, including into the use of hemp seed oil in the production of biodiesel.While the department won’t be adding to its industrial hemp research program in 2018, UVasaid some varieties are showing promise. Hopefully hemp will see industrial applications before the end of the 22^nd Century.

The whole marijuana industry is getting heated as a number of larger companies aim to get their cut. Marijuana is estimated to be worth in the region of $50 billion in the USA, with the vast majority of this number being made up by black market sales. But legalization is all but killing off the black market. After all, why would anybody buy toxic weed from a dealer when they can get organic and regulated weed form a shop, grow their own or attain a certified and tested medical brand? What this means is that there is a $50 billion dollar industry up for grabs, and one that is set to grow. And aside from the cultivation and distribution there are hundreds of side industries which can be even more profitable. These include packaging and marketing, vaporizers and smoking materials, specialized medical strains, testing facilities, tier one connoisseur strains, marijuana security services, growing items, cannabis edibles, cannabis topicals and more. There is also a huge movement in terms of the applications of industrial hemp, which could affect the manufacturing world as we know it.

Alcohol and Marijuana

The U.S. distributor of Corona beer is chasing a new type of buzz. Constellation Brands Inc (NYSE: STZ) has agreed to take a 9.9% stake in Canopy Growth Corp (TSX: WEED), a Canadian marijuanacompany. Constellation Brands, which has a market capitalization of approximately $41 billion, has a portfolio of wine, beer and spirits brands that include Corona, Clos du Bois, Charles Smith Wines, Robert Mondavi, Casa Noble Tequila and Svedka Imported Vodka. According the Wall Street Journal, it purchased the stake to pursue development of drinkable cannabis beverages and to get a head start in advance of eventual legalization in the United States. Canopy Growth, the first Canadian LP to trade publicly, recently posted an all-time closing high of C $13.78 on October 11th and closed Friday at C $12.79.

The exact terms of what is the first major cross-industry investment have not yet been disclosed, but Canopy Growth CEO Bruce Linton stated that it was at a premium to the close of 12.79 Canadian Dollars. Canopy Growth had 165 million shares outstanding and fully diluted shares of 176 million including 11 million options as of June 30th and will report its second quarter results by the Fourteenth of November.

The two biggest US exchanges, the New York Stock Exchange(NYSE) and the Nasdaq, have strict requirements in terms of what companies get listed. This means that many new marijuana companies cannot get listed on these exchanges and have to trade Over the Counter. Over the Counter stocks have less information which can throw off many investors, particularly large ones. No serious investor is going to invest in a company without a balance sheet showing how the company operates along with its yearly profit and loss. Otherwise they are investing in a story, however grand it may be. For this reason, many large investors are forced to go to Canada to invest in such firms, with some critics saying that this is costing the US money to Canadas gain. Further, large firms like Constellation Brands cannot invest in marijuana companies as marijuana is still a drug at the Federal level, and as such it was forced to invest in a Canadian company.

The Marijuana Market

It is not currently known what type of market there is for marijuana infused beverages. Many prefer one or the other, and mixing alcohol and THC can be a recipe for disaster in many ways, as they simply do not go well together. Marijuana makes people calmer, happier and more relaxed. Alcohol makes people more energized, extroverted and active. But despite this some retail outlets have been selling marijuana infused cocktails for a price as high as $22, though this seems to be a novelty trend to capitalize on as opposed to a long term viable business plan.

But it goes without saying that the marijuana market is on the way up.  Marijuana based drug maker GW Pharmaceuticals are up 1200 % in 4 years, while a company simply called Medical Marijuana is up over 900% in the past 4 years. The growth rate of the whole marijuana industry is estimated to be in the region of 23% a year. This are incredibly good odds, and if you pick the right niches and the right companies the profit can far exceed this number. However, marijuana investing is always a risk and it isdefinitely not a stable form of income. Profits will go up and down and the industry is volatile, and a ruling from a regulatory body could see stocks tumbling. The majority of marijuana stocks are currently losing money, and whether these companies have the capital to keep going needs to be seen. And there is growing evidence that the marijuana industry is being monopolized.

But aside from the risk it is one of the best sectors to invest in, and as an old rule of investing it is better to pick the right sector than the right stock. Think of the housing market in all the years before the crash, where it was hard to lose. Pick carefully and bide your time as opposed to expecting any type of quick wins. In the meantime, expect many more large institutions to come into the marijuana market in the next couple of years. Constellation Brands Inc is just the beginning.