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Medical Cannabis Business Could Be a Huge Windfall for Investors

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Jan. 7 2019, Updated 7:31 a.m. ET

Growth opportunity

While recreational cannabis has gained publicity, the medical cannabis business could lead to a huge windfall for investors. Initially, the market size for medical cannabis could be much larger than recreational cannabis. Currently, recreational cannabis is only legal in two countries. For companies like Canopy Growth (WEED), Cronos Group (CRON), HEXO (HEXO), and CannTrust (CNTTF), selling in states where cannabis is legal isn’t an option. Under the US federal law, recreational cannabis still isn’t legal.

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Medical to legalize first

Medical cannabis will likely be legalized in the country. Most countries aren’t open to the idea of recreational cannabis. So, the initial momentum will likely come from exploring medical uses. Canopy Growth has a presence in international markets through medical products.

Even in the United States, companies are exploring opportunities to grow the cannabis market from the medical angle. If cannabis (MJ) helps alleviate medical conditions, regulators might be more open to allowing medical cannabis products for society’s greater good.

We’ll continue to monitor and discuss medical cannabis developments.

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