The Smart Money Will Pile into this Top-Performing Sector
The Federal Government still considers marijuana to be a dangerous, illegal drug. And though it’s slowly changing, banks are taking their cues for the Federal Government leaving companies wanting to capitalize on the developing cannabis train starving for access to cash in many cases.
Banks are hesitant to lend to cannabis companies, and in many cases, they’re worried about even opening a bank account for them.
Hundreds of billions of dollars are tied up on the sidelines that are not being deployed into what I’m predicting to be one of the hottest sectors we are a part of here in 2018.
Though laws are becoming more and more favorable towards cannabis, traditional banks largely have their hands tied when it comes to participating in the funding and lending in this sector.
California has just legalized recreational cannabis. This is the 6th-largest economy in the world, and it’s one that will be many times greater than that of Washington and Colorado, which were game-changers for these states.
Arcview Market Research predicts that California will see regulated sales grow at a 23.1% annual pace between 2016-2020 as adult use sales come into play. By 2020, the total regulated industry will be worth $6.5 billion.
Just to give you some perspective, the three largest agricultural markets in California include milk and cream ($6.1 billion), grapes ($5.6 billion), and almonds ($5.2 billion). Right now, experts are saying that the current cannabis market, including the black market, is worth about $8.5 billion.
As an opportunistic investor, I want to be positioned for the highest returns and the least amount of risk. Giving cannabis companies access to capital is one way to heavily expose myself to this sector and command a premium because cash is hard to come by in the current federal vs. state landscape.
This VERY fact is what led me to a royalty play, FinCanna Capital Corp., which is trading at an incredibly attractive price, in my opinion.
FinCanna Capital is a company everyone should consider researching immediately because it’s addressing this very issue and providing practical solutions!
My number one Cannabis Royalty Play for 2018 is FinCanna Capital Corp. (CSE: CALI & US: FNNZF).
After investigating dozens of cannabis companies with profit angles left and right, FinCanna’s royalty model is what caught my eye. It’s a low-risk revenue model that theoretically has unlimited upside potential. This company was designed to enable both new start-ups and expanding companies to bridge the financing gap that is facing this trend.
Royalty models are extremely strategic and are a win-win for both ends of the partnership.
Investing in FinCanna now is my way to spring-load my portfolio for the future of 21st-century cannabis!
I’m betting big that the convergence of trends is going to greatly benefit FinCanna as the opportunity in the multibillion-dollar medicinal cannabis business explodes and more cash is needed to scale this sector.
Political and social beliefs aside, California is ground zero for societal trends that the world comes around to embrace, and that’s exactly where FinCanna’s FLAGSHIP asset is located. California is opening people’s eyes to the healing power of cannabis and how it can truly remedy some of the world’s most common ailments.
Focusing on the world’s 6th-largest economy, FinCanna is positioned with a business model that bridges the gap between banks and cannabis companies. And what I can tell you is this smoking sector is starving for cash.
Don’t sit on the fence for too long on this one. Time is of the essence.
Chief Editor, CrushTheStreet.com