Cannabis Sector Leaders Leveraging Expertise and Real Estate as Possible Federal Legalization Looms

LOS ANGELES, November 26, 2018 /PRNewswire/ --

FN Media Group Presents USA News Group News Commentary 

USA News Group - The pendulum of cannabis legalization in the US seems to have begun to swing back towards a positive stance over the first half of 2018. Legalization supporters have witnessed a massive shift from January's hard stance by US Attorney General Jeff Sessions against State's rights, now to more recently speculation by outlets such as the LA Times that congress may be now finally primed for legalization.

With the rise of cannabis legalization across North America, has come with it a rise in the prevalence of niche expertise in the sector. Experts are needed across the board, from cultivation experience, to safely steering companies through the remaining legal mine fields. As consultancies and forums continue to pop up across the continent, the industry as a whole is maturing and refining itself at a rapid rate.

New and more established companies are offering services, from financial, to growing space, to retail and trademarking expertise to this rapidly expanding market. These include a variety of players, including Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), MariMed Inc. (OTC: MRMD), Innovative Industrial Properties (NYSE: IIPR), MedMen Enterprises Inc. (CSE: MMEN) (OTC: MTTPF), and CROP Infrastructure Corp. (OTC: CRXPF) (CSE: CROP).

While the sector includes behemoths like Canopy Growth, that can partner with or acquire pretty much any smaller player it sets their eyes on, other options for the emerging players are becoming available.

Canopy itself has a strategic partnership with private company Canopy Rivers, which has a lot of the same faces on its roster, but ultimately has a slightly different approach. Canopy Rivers is designed to pursue opportunities, through amassing a portfolio of cannabis industry investments, like licensed producers, late stage applicants, pharmaceutical formulators, branded developers & distributors, and technology & media platforms. 

However, another platform is also emerging, that's much like the real estate income trust (REIT). In fact, Innovative Industrial Properties is officially listed as an REIT, and has already paid out five rounds of dividends to its investors. Though not an REIT, junior company CROP Infrastructure Corp. is also real estate focused, and asset backed, as it's aggressively building an empire of greenhouse spaces across multiple states, and has signed on an impressive slate of tenants for its facilities, equipment, and management expertise.