What’s the Future of Cannabis Investment Opportunities in Pennsylvania?
Cannabis Market in Pennsylvania Grows Apace
In spite of the lack of FDA approval, opposition from the current administration’s Department of Health and Human Services, and a half-hearted attitude to its legitimization by Presidential candidate Joe Biden, cannabis continues to grow in popularity and profitability. Since medical marijuana was legalized in Pennsylvania in 2018, cannabis operations in the state have exploded. Growth in the second year of the market was 280%, and growth is expected to continue in 2020 (albeit not as explosively). It is expected that sales in 2020 will come in between $675 million and $800 million. Another important statistic is that over 60% of the population is in favor of legalizing adult use of cannabis, a statistic broadly in line with national opinion. Currently, however, there are no ballot measures to make cannabis legal in Pennsylvania. The main ongoing effort is HB 2050, a Bill submitted by state representative Jake Wheatley.
Pennsylvania Pot Stocks Poised to Thrive if Adult Use Cannabis is Legalized
There are many Keystone State cannabis companies and multi-state operators (MSOs) striving to capitalize on any legalization push in Pennsylvania. With both the Governor and Lieutenant Governor in support of legalization there is something of a cannabis countdown to when it is viable to expand operations in the state. Many MSOs are ready to rev up their operations even before the ink dries on the Bill.
Cannabis Growth Fund is an open-end mutual fund which invests primarily in equity securities of cannabis companies, offering broad-based exposure to sectors across the industry, including agriculture technology, industry hemp, biotechnology, cultivation and retail, products and extracts, and ancillary products or services which support the cannabis industry. If you’re interested in investing in cannabis but would prefer a broad spread instead of single stocks, we offer a carefully managed fund accessible to nearly all investors. Get in touch to discuss our Fund and what it could offer your portfolio.
Foothill Capital Management is the advisor of the Cannabis Growth Fund and is not affiliated with the distributor.
OF SPECIAL NOTE
Statements, estimates and forecasts are subject to significant legal, business, economic, and competitive uncertainties, including competition, limited access to bank services, litigation, enforcement actions, and the receipt of government authorizations. This includes differences in, among other things, laws, regulations and guidelines relating to the manufacture, transportation, and storage of cannabis, and the conduct of operations, which vary among the U.S. federal government, various states, and foreign jurisdictions. There can no assurance that such estimates and/or forecasts will be realized, and these are not indicative of future investment performance. Historical data is not indicative of future performance.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained from 888.885.0588 or at https://www.cannabisgrowthfunds.com/. Please read the prospectus carefully before you invest.
Foreign investing involves social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more developed countries. Investments made in small, mid-capitalization and micro-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Purchasing and writing put and call options entails greater than ordinary investment risks. Options ownership involves the payment of premiums, which may negatively impact Fund performance. Please see the prospectus for details of these and other risks. Distributed by IMST Distributors, LLC.