The Green Midas Touch: How to Succeed in the Marijuana Business
NEW YORK ( MainStreet) While certain aspects of the legal marijuana trade may be gaining in respectability of a certain kind, one of the more difficult parts of this sector to traverse is one of the more conventional business challenges .
Or, to reuse a respected real estate adage, it all starts with location, location, location. In the marijuana business that business presence is not just limited to brick-and-mortar storefronts . Given the legal climate that still exists, the Midas "Green Touch" of the business can still be a bit hit and miss. Even in businesses that operate tangentially to actual contact with cannabis and even in cyberspace , with physical retail presence.
However amidst the turmoil of a still evolving market niche, real estate management companies have begun to gain traction in terms of (mostly) managed grow real estate offerings , with multimillion dollar funds now not unheard of if not uncommon, and penny stocks appearing (if not surging to new highs last month) in the over the counter financial market. They are entering the ring with mostly higher tech publicly traded companies such as Terra Tech (TRTC) , which just announced plans to enter the vertical in Nevada via formation of a subsidiary to do so.
Even here, however, there are almost weekly setbacks, with the SEC halting the trade of two marijuana and real estate related companies ( grow technology and real estate management ) since the second week of March alone. The reason? Reported concerns of apparently (to the SEC) administratively dubious share trades and distribution. Both GrowLife (PHOT), the latest company to see its stock suspended, and a company called out by the SEC in April, Advanced Cannabis Solutions (CANN) do not sell cannabis directly.
Increased scrutiny of companies within the vertical is a trend that exists from Wall Street to Main Street.
One of the more contested if not widespread issues still hanging over the entire industry vertical like a cloud over a 420 parade, is the matter of store-front locations. Location of the same, whether dispensary or recreational head shop, is a hotly debated and frequently controversial topic in every state now considering how if not when to legalize cannabis.
Including in Colorado.
To date, online pharmacy locators locating the sometimes distant dots have not raised attention except when they attempt to advertise in mainstream advertising space (see the Weedmaps interaction with CBS over Times Square slot ).
The expansion of the medical marijuana vertical in Oregon is not proceeding without its share of snags and moratoriums in this regard. Right now the issue is more of a municipal concern than a zoning one. More than 70 cities and municipalities across the state have implemented temporary bans of dispensaries for a year as Oregon rolls out its dispensary program. The law gaves municipalities until May 1 to enact bans which expire next May, although some cities appear to be interested in permanently prohibiting any kind of retail marijuana establishment (for whatever purpose).