All indications are that this could be a safer investment with a substance that has been shown to be a more natural way to treat overall human wellness.
In this moment of a pandemic affecting businesses around the world, the cannabis business situation is especially sobering.
Canopy Growth, once the darling of the industry and a self-described “world leading” cannabis company, announced on April 16 the closing of various operations in Africa, Canada, Latin America and the U.S., resulting in the loss of over half a billion dollars.
Another early cannabis industry dazzler, MedMen, “North America’s premium cannabis retailer,” ran into major management issues, firing co-founder Adam Bierman and showing huge loses in their recent 2020 financial statement.
The glow of fast bucks and sustainable profitable operations has dimmed. Cannabis stocks have been crashing hard through most of 2019, with many of the top cannabis companies in the U.S. having enough cash to continue operations just through the middle of this year — struggling through 280E tax issues (a tax rule where they can’t write off business expenses), and not yet able to fully factor in the ongoing hit from the coronavirus.
Now, there could be a new target for investors who have learned the lessons from the cannabis industry and are working to build another related industry: psychedelics.
All indications are that this could be a safer, calmer, more step-by-step investment with a substance that has been shown to be a more natural way to treat various mental health conditions and overall human wellness — just what the coronavirus has put in the spotlight.
Research suggests that psychedelics are catching on. In 2019, the Global Drug Survey collaborated with psychedelic researchers to explore the acceptability of psychedelics and other drugs such as MDMA (ecstasy or “Molly”) and ketamine in psychiatry. “We found high rates of acceptance especially among those with prior experience of using them, although fears based on myths and outdated science, were evident among psychedelic naïve respondents,” the survey concluded. “Psychedelics are a boom business.”
Published: April 27, 2020