Cannabusiness Investments: Evolving Risks and Due Diligence


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PUBLISHED ON: April 13, 2015

With the legalization for medical use in 21 states, and for adult use in Colorado, Washington, Alaska and the District of Columbia (and Oregon, effective July 1, 2015), the cannabis industry is said to be the fastest growing industry in the United States. Arcview Market Research reported an increase in industry sales of 74 percent to $2.7 billion in 2014, up from $1.5 billion in 2013. As cultivation, distribution, medical and personal use become increasingly legal at the state level, entrepreneurs, their friends and family and other early-stage investors are starting to see pathways to harvest, following the influx of sophisticated investors from traditional private equity sources.