Excerpt from: From Cannabis Profits Daily. May 10, 2019
Big Money Can’t Get In – But You Can
Major institutional investors see the incredible potential within the cannabis markets. But there’s one thing holding them back – and clearing the way for you…
PayPal Inc. has thrown its weight behind the Secure and Fair Enforcement (SAFE) Banking Act of 2019.
We’ve been following this legislation closely, because its passage will turn the flow of capital into the cannabis sector into an absolute torrent. The SAFE Banking Act has support on both sides of the aisle – including from key Trump administration officials – and it looks increasingly likely that we’ll see the bill pass on to the Senate in short order.
Now Rep. Ed Perlmutter (D-CO), who introduced the bill, has shared that PayPal is offering its support, too.
“The company, which more typically lobbies on issues like mobile banking, transaction fees, and international trade,” Perlmutter said, “added pot banking in its first quarter 2019 lobbying report.”
The purpose of the act is “to increase public safety by expanding financial services to cannabis-related legitimate businesses and service providers and reducing the amount of cash at such businesses.” And while it’s true that PayPal may wish well for the safety of individuals in the cannabis industry, that’s not why PayPal is putting its money behind the bill. This lobbying is a clear sign that mainstream financial services companies are clamoring to enter the cannabis game.
As you’ll see, PayPal isn’t alone in this effort…
Big Money Wants In
There’s another big company Cannabis Profits Daily readers will be very familiar with by this point: Constellation Brands (NYSE: STZ), an international producer and marketer of beer, wine, and spirits. This Fortune 500 company began its own foray into cannabis in August of 2018 when it injected a $4 billion investment into Canopy Growth Corp. (NYSE: CGC).
Constellation is 74.34% owned by institutions, while institutional investors only hold 10.93% of Canadian giant Canopy. Cannabis is on track to become America’s next major cash crop. If this happens, it could grow into at least a $100 billion industry. Going even further down the chain, institutional ownership of Acreage Holdings (CSE: ACRG, OTC: ACRGF), the company in the process of being acquired by Canopy, comes in at less than 5%.
What the support of these major players proves is that big money is desperate to make its way into the cannabis space. Federal regulations are simply stifling them from doing more.
Huge financial institutions like Merrill Lynch, Bank of America, and Jefferies have all begun covering cannabis stocks, but they’re limited to either Canadian companies or those that don’t “touch the leaf.” And that creates a monumental gap.
Even security firms dealing with cash like Brinks want in. CEO Doug Pertz made his eagerness to access the broader American cannabis markets clear, saying, “I’d love to see something happen in the U.S. to be able to duplicate what we’re doing in Canada.”
You, on the other hand, face no such restrictions with your capital. We’re in a unique window where cannabis companies are going public and making a ton of money, and Main Street investors like you are the ones who stand to gain the most.
Once those federal regulations are lifted, institutional money is going to rush into this sector – making anyone who invests today profits like nothing we’ve ever seen.
Executive Director, National Institute for Cannabis Investors