New Consolidated Cannabis Company Gets the Drop on Market-Share – Newsmax
Marijuana legalization is spreading throughout the United States, triggering a gold rush — or “green rush” — among investors seeking ways to profit from a growing cash crop.
California, Nevada, Massachusetts, Maine, Florida, North Dakota, Arkansas, and Montana this month approved measures to allow the medical or recreational use of marijuana. The drug remains illegal under federal law, presenting a risk that investors need to consider before buying stocks in the burgeoning industry.
Investor skittishness means than some marijuana-related stocks have been undervalued in comparison with their money-making potential. But that also makes them potential acquisition targets.
Golden Grail Technology (ticker: GOGY), Novus Acquisition & Development (NDEV), and Americann Inc (ACAN) are among the companies that investors can consider for investment.
GW Pharmaceuticals (GWPH), Insys Therapeutics (INSY), and Cara Therapeutics (CARA) are researching therapeutic effects of cannabis-derived substances. Meanwhile, over-the-counter stocks that have roared higher this year include Aphria (APHQF), Aurora Cannabis (ACBFF), General Cannabis (CANN), Cannabis Sativa (CBDS), and THC Biomed (THCBF).
Once a company’s product is in FDA clinical trial, the company is not allowed to sell the product while in the testing phase. After they receive FDA approval, corporations are usually looking to acquire the guys with the most customer data in the marketplace so they can get their product out the door quickly and make back some of the R&D money. Whether any of the companies above will actually secure FDA approval is not known at this time, but GWPH is currently in the FDA’s “Fast-Track” program.
Federal restrictions on marijuana don’t stand in the way of Golden Grail Technology (GOGY), a publicly traded company that sells food supplements derived from a key part of the cannabis plant that doesn’t get people high.
Cannabidiol, commonly known by the initials CBD, has been legal in