It Might Be A Short-term Window Where You Can Make A Lot Of Money, Depending On What The Cultivation Landscape Looks Like In Five Years.

Hundreds of attendees, exhibitors and sponsors are gathering at the California Cannabis Business Expo in San Diego, running through Wednesday. (Photo by Rob Nikolewski) At the same time, once Californias taxation and licensing regimes go into effect at the start of next year, there appears to be no shortage of places for potential investors to put their money, whether it be in companies cultivating marijuana or cannabis-based drugs with medicinal applications such as helping patients cope with epilepsy. Youre looking at a market for cannabis that has amazing, high-growth potential, said Jack Scatizzi, managing director at Canopy San Diego , a technology accelerator aimed at finding and funding cannabis companies. So if you have some spare cash and youre willing to make the move into marijuana, where do you go? In the words of those in the industry, you can start with companies that touch the plant. That is, cultivators, dispensaries, distribution outlets and makers of marijuana-infused products. If youre investing in a cultivator, youre going to get paid back in dividends, said Scatizzi. It might be a short-term window where you can make a lot of money, depending on what the cultivation landscape looks like in five years. But youre also at risk because youve invested directly in someone that is technically trafficking in a Schedule I narcotic. Investors can also put their money in companies that dont touch the plant and deal with the cannabis industry in an ancillary way such as digital media, power and energy companies ( growing marijuana is energy-intensive ) and biotech firms. Ancillary companies have less risk, Scatizzi said, but investors would likely receive no cash pot business dividends.

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