The U.S. election brought a variety of reactions to the American public, but within the cannabis community, smiles reigned on November 9th.
Voters within seven additional states legalized adult use of medical marijuana, and market leaders are now anticipating a surge in capital opportunities. Poseidon Asset Management spoke with Marijuana Business Daily recently about the potential the future holds.
The obvious and largest impact on the cannabis industry following the election is the expansion of legally opened markets--the most massive being Poseidon's home state, California.
As a market, California is larger by itself than the four adult-use markets combined. However, expansion into CA for established companies is more easily said than done. As Managing Director, Morgan Paxhia is quoted saying in the article, "some brands will try to establish a foothold in California, but it's a competitive market." If not executed properly, moving into California may just be some company's undoing.
The expanded markets will also bring increased investor interest. Poseidon has certainly realized the implications of this. “Phone calls and emails (from potential cannabis investors) have been coming in throughout the night, and it hasn’t let up,” Paxhia said in the wake of Election Night. “This is a landslide victory, and people who waited to get in on this until after the election don’t want to waste another second.”
One of the beneficial impacts of this increased investor interest is that companies that need capital will finally get what they have been waiting for.
"Historically, this industry has been underfunded,” Morgan is quoted saying, “but if we see more companies getting more capital, they’ll be able to hire more staff, expand their facilities and invest in the things you need for innovation.”
In total, the election has been a win for the cannabis industry, and Poseidon is proud to have supported measures like CA's Prop 64 that have led to growth and positive change for cannabis in America.
Read the full article here.