Investors are currently focusing on the booming Marijuana market in California after the legislation of the legalization of both medical and recreational use of pot. However, there is the expected marijuana market for the whole of Canada expected in 2018. The auditing multinational Deloitte has estimated that the anticipated revenues from marijuana from the Canadian market will be around $5 billion. These estimates exclude the pot-related goods and service’s ancillary market which is expected to generate approximately $20 billion. The chief executive of CannaRoyalty, Marc Lustig, said that the Canadian cannabis market is an opportunity for a lifetime. CannaRoyalty is a company that has investments in 20 legal cannabis firms in Canada and the United States.
Lustig who has worked in both the capital markets and the pharmaceutical industry predicts that the legalization of recreational marijuana may create a market like the one that surfaced after alcohol was legalized in the 1930s. Medical research has inferred multiple benefits that come with the use of both medical and recreational cannabis. According to a study that was recently conducted by the University of New Mexico, there is a strong correlation between the reduction of opioid use and the Medical Cannabis Program enrollment. Another reporter who writes about marijuana, Javier Hasse, has also suggested that the industry is not yet saturated and there is more room for investment and innovation.
Lustig had big hopes to provide a new place for investors in the new multi-billion dollar economy when he launched his portfolio a couple of years back. Lustig also wanted to mitigate the risks that investors come across by having the industry’s offerings diversified along geography, product type and the modes of financing. CannaRoyalty is a company that has its focus on assets and brands that cannot be commoditized like what happens with the raw production of marijuana. CannaRoyalty invests in product processors and manufacturers. The company also looks for other businesses that do not “touch the plant.” Lustig said that beverages and cannabis edibles had the most potential for growth from a common market to a global industry.
Lustig also noted that there were investment opportunities in the manufacture of cannabis processing machines such as the ones that pack and pre-roll marijuana. Some CannaRoyalty company holdings are located in Canada while most of them are in the United States including Arizona, California, Florida and Puerto Rico. One of the most critical Company strategies for CannaRoyalty has been implemented in the multi-billion dollar cannabis industry in California.