The rapid expansion of the cannabis industry has created opportunities for a number of new companies to develop products, technologies and services beyond just the cultivation and distributionDistribution A payment you get from a mutual fund or company stock. Funds must distribute any capital gains to shareholders at least once a year. This payment can take the form of cash or additional units. Some companies offer Dividend Reinvestment Plans (DRIPs).+ read full definition of cannabis itself. There are now a number of businesses operating under the umbrella of the cannabis industry, even if their business does not actually grow or sell cannabis products directly, making it possible to investInvest To use money for the purpose of making more money by making an investment. Often involves risk.+ read full definition in a cannabis company without investing in the cultivation or distribution of cannabis itself.
Some examples of businesses operating within the cannabis industry include:
- Agriculture technology: Businesses that support the innovation and development of equipment required to cultivate cannabis, such as automated fertilizer systems, greenhouse technologies and improved lighting systems.
- Ancillary products and services: Businesses that offer products that complement the cannabis industry as a whole, which can include products like a cannabis breathalyzer to laboratories that test cannabis products. This also includes companies that provide insurance to cultivators as well as those that create consumer packaging for products.
- Biotechnology: Businesses that focus on the pharmaceutical applications of cannabis by developing treatments to target illnesses and diseases.
- Consulting services: Businesses that respond to the complexity of rules and regulations around cannabis between different jurisdictions. They may provide services to assist with licensing, zoning or advising on operational processes.
- Consumption devices: Businesses that create products that people use to consume cannabis.
- Cultivation and retail: Businesses that grow and sell cannabis, and are often the types of businesses that most people think of when discussing the cannabis industry.
- Cannabis products and extracts: Businesses that sell cannabidiol products, edibles, topicals, drinks and other products.
- Holding companies: Businesses that typically own a considerable number of voting shares in a variety of cannabis companies, allowing them to influence the management and affairs of the companies held.
- Industrial hemp: Businesses that provide products using industrial hemp, which is different than cannabis and may have numerous applications and uses, including creating consumer products like paper and clothing, as well as building materials, fuel and foods.
- Organic farms: Businesses that provide organically-grown cannabis to other companies or sell to consumers directly, relying on the increasing demand for organic products and services to drive the business’s growth.
Read the full article: Investing in the cannabis industry