The Global Weed Sector Could Be Worth $57 Billion in Just 10 Years
Opportunities to profit from this revolution have yet to be discovered by hedge funds and venture capitalists
Scythian Biosciences Corp. (SXV: SCYB.V; OTC:SCCYF) is a tiny company with a big secret: a way to turn cannabis assets across the world into investments worth hundreds of millions. The company is making a transition from bio-sciences to investment, and it's just struck it rich.
Scythian has accomplished a huge coupe: it's agreed to sell its assets in Jamaica and Latin America to Aphria, the marijuana giant, for $193 million. That's because weed is GLOBAL. It's much, much more than Canada and the US. The global weed sector could be worth $57 billion in just 10 years, and that is mainly focused on the recreational market.
But there are better ways to profit from the Green Revolution...ways that the hedge funds and venture capitalists haven't discovered yet. Scythian knows the secrets to making minor marijuana assets into a $193 million investment. It's the only truly global cannabis opportunity spotter, an incubator for marijuana ventures and research throughout the world.
Everyone's been paying attention to the North American weed market...but they've been missing the big picture. 1.37 billion people in Europe and Latin America could soon gain access to legal marijuana. And most people have no idea. But the team at Scythian Biosciences Corp. TSXV: SCYB.V; OTC:SCCYF) sure does.
They've got a presence in Argentina, and now they're targeting acquiring new investments in Brazil. Scythian's got millions of dollars in seed money from Aphria Inc. (OTCMKTS: APHQF), a $2.952 billion behemoth and one of the biggest sharks in the cannabis sector. And what they've done is ingenuous: acquiring and incubating assets with cash from Aphria, only to sell them back for a huge payday. Scythian is going to make $193 million from its sale of assets to Aphria... and plans are for this to be just the beginning. They're getting ready to duplicate this type of deal over and over, aiming for high profits.
# 1 Tipping Point for an expected $57 Billion Market...
Cannabis has been one of the biggest stories of 2018...but few have grasped the size of the opportunity. The move from illegal to legal is happening at a rapid pace. A report from Arcview Market Research and BDS Analytics found cannabis sales accounted for $9.5 billion in consumer spending. The total size of the global cannabis market is estimated to reach $32 billion by 2022 and $57 billion by 2027.
The bulk of pot sales are in the United States, which at the moment has a patchwork of state regulations dictating how marijuana can be sold and consumed legally.
But North American pot consumption is bound to rise rapidly, led by groundbreaking Canadian legalization this year.
Canadians spent $5.7 billion on cannabis products in 2017, but with recreational pot now about to be legal, that figure could explode as millions of new users start lighting up legally. Across North America, marijuana is having its best year ever. Support for legalizing weed across the U.S. is at its highest level in years-polls find as much as 80 percent in favor. And the limited space for medical marijuana is blossoming into a much broader market, one that includes recreational marijuana use and marijuana-based pharmaceutical products.
The FDA, for instance, just approved the first ever drug based on cannabis. States are rushing towards legalization: super-conservative Oklahoma, for instance, just legalized medical marijuana, becoming the 30th state to do so. States like Oklahoma are desperate for tax revenue...the kind that a new green pot industry could bring generate. States like Vermont, Michigan and California are lining up to expand pot and make a killing. With such momentum, $57 billion by 2027 may be a conservative estimate. The greener North America gets, the bigger the opportunity in pot becomes.
# 2 ...And That's Just the Beginning
North America is driving an investment surge in the cannabis sector, but the opportunity is even bigger than people have realized...
By Ian Jenkins, oilprice.com
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