Marijuana Goes Corporate on 420

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NEW YORK (TheStreet --It wasn't long ago that April 20th was just another day. Now, it's become the de facto National Marijuana Celebration day, and companies are lining-up to sponsor a 420 event.

The origin of the use of 420 as a code word for pot has been debated. Some attribute it to the time of day when high schoolers at San Rafael High School in California got together to smoke, others to High Times editor Steve Hager suggesting that 4:20pm is an ideal time to get stoned. For a long time, it was thought to be a police code for marijuana smokers but that myth debunked.

Regardless, 420 is now becoming the subject of festivals and concerts, especially in Colorado and Washington state, where medicinal marijuana is legal. Even in Texas, which hasn't relaxed its marijuana laws, there are at least 10 events in Houston alone featuring the 420 moniker.

So, bring on the sponsors? Well, gingerly.

Mainstream companies aren't quite ready to embrace illegal drugs just yet, but they are sampling the market. Red Bull reached out to "fine"marijuana grower Diego Pellicer as a potential sponsor for the 420 Fest in Colorado. RedBull is a famous energy drink out of Austria known for being edgy and catering to the youth generation. Although it seems to be an oxymoron to pair an energy drink with the relaxing nature of cannabis.

Publicly-traded GrowLife is a co-sponsor of the 420Fest in Colorado. CEO Sterling Scott said, "Colorado is the place to be." He went on to say, "We are pleased to be able to support this cultural and musical event. It has the making of Woodstock for this generation." Colorado is also benefiting from tourists traveling to the state to celebrate the two day 420 festival.

Coincidentally, earlier this week, House Bill 1523 Respect State marijuana Laws Act was introduced in Congress, which essentially will allow states to set their own laws with regards to pot. It is one of several pending before Congress now. GrowLife supports HR 1523. Scott believes that as the laws move towards taxing and regulation of pot, more companies will jump into sponsorships.