Bank of America Merrill Lynch expanded its focus on the cannabis industry this past week by beginning to cover this emerging economic giant. Merrill Lynch is particularly interested in entities like Supreme Cannabis, Aurora Cannabis, Cronos Group, Green Organic Dutchman, Canopy Growth, and Hexo Corporation. As a result, more people are trying to get approved for cannabis business loans and hemp business loans than ever before.
Whether or not the US legalizes recreational marijuana, Canadian companies have been prompted to accelerate their stock strategies within the United States and around the world. Some Canadian economists recommend announcing new and huge cannabis business loan deals before the US legalizes in order to maximize their profits in the long-term.
For instance Canopy Growth recently struck a $3.4 billion deal to acquire Acreage Holdings, a public company headquartered in New York. Major Canadian cannabis companies are also listed on the Tokyo Stock Exchange (TSE/TYO
) and able to enter into the US markets because of unique structuring that would change as soon as the US legalizes.
All of this contributes to why now is an excellent time to position yourself in the cannabis industry. It is literally exploding, internationally, on various fronts. Recreational use, medical uses, grow operations, dispensaries, hemp business loans, edibles markets, and more all are ready to boom like few industries ever have before.
According got Merrill Lynch, which is headquartered in Charlotte, North Carolina, the cannabis industry is already valued at more than $160 billion globally. Currently, the United States accounts for about 34% of that number. Europe follows with 25%, then Asia (21%), Africa (9%), Latin America (6%), Canada (3%), and Oceania (2%).
The world now watches to see if Canada will rise from 3%, remain about the same, or begin to fall as their legalization structure continues to be implemented. Bets are that it will significantly increase, which fuels the anticipation of US-based investment companies.
Merrill Lynch asserts that the cannabis industry continues to punch holes in industries like alcohol, pharmaceuticals, health/wellness, and others that are currently valued at more than $2.6 trillion.
If you are an entrepreneur considering applying for a cannabis business loan or a hemp business loan, there are cannabis lenders that specialize in this type of financing. Low interest rates and high profit projections continue to drive this booming industry. References Marijuana Business Daily - Merrill Lynch launches marijuana sector coverage, predicts more cross-border deals STAT - Canada’s legalization of marijuana offers a blueprint for the U.S.
Business Insider - Top cannabis CEOs say Canopy Growth's $3.4 billion purchase of pot cultivator Acreage 'shakes the foundation of what has been true' and will spur a cannabis M&A boom
JPX - Japan Exchange Group