Foreign Investment in U.S. Cannabis: A Continuing Love/Hate Relationship
The U.S. cannabis industry attracts all kinds of entrepreneurs and investors. That has been true since Colorado and Washington legalized cannabis for adults 21 and up back in 2012, and since other states began creating comprehensive licensing regimes. The ever-emerging nature of the industry and its state-by-state quilt of regulations creates all kinds of business development and investment opportunities that most cannabis businesses hope culminate in either a very nice exit once our federal government (hopefully) legalizes/deschedules cannabis altogether, or that results in the ability to really compete long-term as interstate commerce opens up and serious, large-scale competition moves into the space when federal prohibition falls.
Foreign investors are not immune to the charms and allure of cannabis. And where only 11 states have legalized cannabis for adult use–some with extremely competitive licensing regimes– the appeal of cannabis increases exponentially for investors still looking to be early movers in the space. Additionally, there’s been a pivot in the investor scene of late where a lot of the fast, reckless money has left the space after significant bouts of mismanagement at larger cannabis companies and with some multi-state operators (generating certain vulture investment opportunities), so investors are really getting wise to