Cannabis business loans Funding in California America
July 6, 20190
The cannabis purchase of the American company Cura Cannabis was the largest acquisition in the history of the cannabis market in the United States, stunning the purchase amount – a billion dollars. The Cura Portland business of recreational cannabis was acquired by a Massachusetts company called Curaleaf Holdings Inc. And it is supported by two billionaires, a native of Russia, who made their fortunes in the dashing 90s. Investors estimate this entire startup at almost $ 4 billion and predict that its value will rise by 20% after the transaction for the purchase of all Cura shares is closed, according to the American newspaper The Oregonian. Aurora cannabis is also available in Deutschland.
Both Cura and Curaleaf have a highly unorthodox corporate history and seek early benefits, since “hemp business is faced with tremendous uncertainty and rapid changes.” The fact is that recreational cannabis remains illegal in the United States in accordance with federal law, and it is unclear when or how that might change, cites an article publication.
Medical cannabis loans is permitted in Washington and California
Medical cannabis is permitted in 33 states, while recreational cannabis is permitted in 10 states, including Oregon, Washington and California. Illinois, where the relevant law was recently passed, will be the 11th state since January 1, 2020. However, in accordance with the 1970 Federal Law on Controlled Substances, cannabis is an illicit drug, along with heroin and LSD. Therefore, traditional sources of financing, such as US investment banks and reputable consumer goods companies, do not want to participate in this business. Bank loans are not possible; the use of credit cards and other traditional business tools to work in this industry is also impossible.
legal cannabis business in the United States is growing
The market for legal cannabis business loans in the United States is growing much faster than other consumer markets, because it does not need to artificially create demand or innovate. His task is to legalize a product that is already popular. Now on the American stock market several hundred public companies are listed, related to the cultivation of cannabis and the production of products based on it. There is already a special “hemp” stock exchange index, as well as analysts specializing exclusively in this type of securities. Despite the continuing prohibition at the federal level, those states where the sale of cannabis is already allowed are a kind of test grounds.
Authorities issue a limited number of licenses for the cultivation and sale of cannabis, and large companies in this area are consolidating – trying to become even bigger, buying one another in pursuit of regional markets. At the moment, Curaleaf has 43 points of sale, about 10 locations where cannabis is grown, and 11 points of processing – all of them are on the East Coast. With the acquisition of the Portland company Cura, businessmen Boris Jordan and Andrei Bloch are able to increase their capital many times over by investing in a risky business.
Legal cannabis can bring $ 40 billion to the country
According to the forecast of the research organization Arcview Market Research, the US market of legal cannabis can bring $ 40 billion to the country’s economy in 2021 compared with $ 16 billion in 2017. The amount includes direct and indirect factors, including the number of new jobs in the sector and tax deductions. And sales of cannabis can reach $ 23 billion. It is expected that in one form or another, cannabis will be legalized in 35 US states by 2021, unless, of course, this happens earlier at the federal level. For more Details visit : https://auroracannabisaktien.com/