A world first.
tech meets science meets medicine
MarijuanaSX. A focused, fit-for-purpose Stock Exchange created specifically for the medical marijuana industry and therefore becoming the definitive source of medical marijuana data globally
What is Medical Marijuana? Cannabidiol (CBD) is the part of the cannabis plant that does not produce a “high” like the THC part and is usually used for health reasons rather than recreational.
Medical use of cannabis or preparations containing THC as the active substance is legal to various extents in Australia, Austria, Belgium, Canada, Chile, Colombia, Croatia, Czech Republic, Germany, Finland, Israel, Italy, Jamaica, Macedonia, Malta, Mexico, Netherlands, Philippines, Slovenia, Spain, Turkey, the UK and some states in the US, although it is illegal under US federal law.
Schedule IV of the United Nations’ Single Convention on Narcotic Drugs mentions Cannabis, making it subject to special restrictions including allowing states that permit the production or us medical cannabis to operate a licensing system for all cultivators, manufacturers, and distributors ensure that the total cannabis market of the state shall not exceed that required “for medical scientific purposes.”
“The global medical marijuana market size was valued at US$11.4 billion in 2015 and is projected to grow with CAGR of 17.1% during the forecast period. The market is experiencing growth due to rising awareness regarding various medical applications such as pain management, appetite enhancement, and reducing eye pressure.
Medical marijuana is mainly classified into two types, namely Cannabis Sativa and Cannabis indica, which originate from the countries of the western hemisphere and central & south Asian region respectively. The growing number of countries legalizing the use of medical marijuana in various parts of this world is one of the key factors driving the usage rate of cannabis in therapeutic applications.”
Grand View Research: Medical Marijuana Market Analysis By Application, (Chronic Pain, Arthritis, Migraine, Cancer) By Country (U.S., Canada, France, Italy, Switzerland, Israel, Belgium, Croatia, Finland, Netherlands, Portugal, Czech Republic, Estonia), And Segment Forecasts, 2013 – 2025 http://www.grandviewresearch com/industry-analysis/medical-marijuana-market
the $56 billion industry
The Grand View report estimates that the global medical marijuana market will reach a value of $55.8 billion by 2025. The increasing interest amongst the academic researchers and healthcare providers regarding the therapeutic uses of marijuana is among the significant factors, which is driving the market over the coming years.
Other key findings in the report include:
- Chronic pain is the largest application segment for medical marijuana, due to its huge patient base. Chronic pain held 39.6 percent of the revenue share in 2015.
- The prevalence of chronic pain is growing and increasing the demand for medical marijuana for pain management.
- Cancer will be the fastest growing application segment with a compound annual growth rate of 18.2 percent.
- North America currently holds a majority of the share of the medical marijuana market. It made up 49.0 percent of the global market in 2015 and is expected to drive the market over the forecast period with a compound annual growth rate of 22.0 percent.
- The expansion of marijuana legalization in the U.S. is helping to drive up the demand for marijuana for both therapeutic and recreational purposes.
Innovation and Interconnection The prosperity of this sector not only benefits the dedicated companies, it also feeds wider sectors such those selling as equipment for growers, or security for medical marijuana dispensaries. One company offers users the opportunity to review strains for quality. US company Convectium provides industrial equipment assisting in filling vaping cartridges that were previously done by hand using a syringe.
“The demand for machines is five times what it was from one year ago.” “We truly believe that the only way to scale is to add technology and standardization.” Danny Davies, Convectium
Davies said there are many operations that are resistant to change. “They don’t trust technology. Many of the companies out there are primitive, even the big ones, but they will learn they had better scale quickly.”
Instability in the Market There is a huge demand for medical marijuana products and as more research is undertaken and products prove themselves in trials, the demand will only grow. In spite of these positive forecasts, startups in the medical marijuana sector face tougher barriers to entry than those from other sectors. The legal constraints are considerable. In the US for example, while polls have shown a majority are in favour of legalizing medical marijuana, Donald Trump only issued a statement on his administration’s position on 6th May 2017 and it is not clear cut.
29 states have varying degrees of medical marijuana legalization but Trump stated: “Division B, section 537 provides that the Department of Justice may not use any funds to prevent implementation of medical marijuana laws by various States and territories. I will treat this provision consistently with my constitutional responsibility to take care that the laws be faithfully executed."
This means the Federal Government has the power to overrule the congressional rider that stops the Department of Justice going after medical marijuana programs causing huge instability in the sector in the US, and other countries will experience the same possibilities as elections loom and administrations change.
Companies have to adhere to strict regulation around their activities including what can be lengthy processes to obtain licences and undergo the strict compliance requirements. In countries such as the US, due to the restricted status of the drug, companies cannot deduct the cost of doing business against tax.
Difficulty in Finding Finance Due to the uncertain legal status, institutions understandably are reluctant to invest in companies in this sector, not just because the activity might suddenly be declared illegal, but also because any income generated from such business could be deemed out of bounds.
Incubators are being established in this sector and venture funds are starting to show significant interest. There remains a stigma around this sector and some funds will still not invest in companies which “touch the plant.”
Various companies are now listing on stock exchanges across the world although most are on OTC exchanges rather than the big boards which means it’s often hard to get accurate and up to date financial information and many are penny stocks.
The rush to get in on the marijuana craze has created hundreds of startups. The odds are that many of these will fail. The winners so far are established companies that are adding marijuana to their focus. Even the winners have seen drops in price lately. www.Investopedia.com
Companies within the Cannabis Industry change direction and business models quickly. Some never develop beyond a plan or forward looking statements in a couple of press releases. www.Marijuanastocks.com
Why does the market need MarijuanaSX? The medical marijuana sector is a young, inexperienced industry facing legislative instability, intensive regulation and compliance. Stigma around the sector makes it difficult to find investment or even banking facilities in some cases. Transparency and data are key to the growth of this sector.
- Companies need access to:
- Legislative requirements
- Compliance requirements
- Sources of capital
- Experienced managers
- Research and innovations in the industry
MarijuanaSX offers a unifying source of capital, innovation and data as well as a platform on which companies of all sizes can make the most of these resources. Where companies are embracing innovation to improve production, efficiency and regulation, MarijuanaSX brings the same ethos to capital raising. Medical marijuana companies need to embark on the creation of a new, viable business offering; ideally going beyond the products they produce and market, to a business model which also drives efficiency through the investor and stakeholder experience, which in turn strengthens the company MarijuanaSX combines data about the company, key people, sector analysis, data about the projects and concessions and also the investors. This builds into a rich resource for decision making and forecasting as well as a way of communicating with and attracting investors using minimum effort. The MarijuanaSX ecosystem allows information to flow easily to every participant, giving access to all the resources the company needs to grow, mitigating risk and attracting investors.
Automation and advanced analytics deliver ease of reporting and information sharing.
The company can embed analysis, data and reasoning into their decision-making processes, becoming an insight-driven organization. Timely and relevant information solves wide range of business problems at all levels of the organization.
They can also take all this to the next level and share some non-sensitive data with key strategic investors directly as opposed to using time consuming and expensive road shows. Transparency and information flow leads to risk mitigation which attracts investors. Digitally delivering data to the board is one level of innovative thinking, but MarijuanaSX encompasses the investor base too.
With the MarijuanaSX Supplier Module an investor will be able to read a simple synopsis about a technological advancement, see clearly the supreme advantage for anyone adopting these advancements, and invest accordingly.
Predictive maintenance; setting milestones and monitoring. Our analytics include a matching system which streamlines the research and matches investors to companies based on opt in data so the right investors are looking at the company at the right time.
We’ve taken this one step further with IPO Bidder; a matching engine where companies project their growth path with milestones and attract the institutional support they need to grow their companies. Institutions gain the opportunity to lock in an advantageous price by committing early to the company and can monitor progress.
The company is protected and supported in the ecosystem from the beginning with integrated services from the Capital SuperHighway, which range from business planning, and personnel services to web services. If the company is failing to reach its milestones, these services from the ecosystem can be provided to get them back on track.
Digital simulation models; IPO Bidder predicts their results and benchmarks along the way mitigating risk for investors. IPO Bidder asks institutions to log the size, terms, sector and location of its investment preference. It then plays forward the business model and plan of the early stage companies and predicts when these smaller deals may become big enough to be in the sweet spot of the later stage investor. The institutions bid based on a future price based on the established benchmarks and assumptions then watch them play out.
IPO Bidder irons out the time wasted presenting to funds that are not interested. It irons out some of the due diligence as the fund is already watching the team produce on key milestones it said it would. The bids are not obligations until the goals seem achievable and bids are increasing.
The early stage investor sees potential in the bid alone as he has mitigated his risk down to a single question, “Can this team get to this point with the capital they have in the bank?" If the answer is yes, he has a solid basis to make a decision to invest as opposed to before when these questions were met with too many common sense barriers mentioned above.
IPO Bidder not only takes funding parameters from private equity, hedge funds, private investors and banks but it also looks at acquisitive giants and their parameters should a small deal tip into a big deal and hit the radar of one, which in turn creates an exit opportunity and layers it in early.
Collaboration; Other tools and connections in the ecosystem.
The MarijuanaSX ecosystem gives companies everything they need to grow and investors everything they need to participate. For more information on these tools see www.capitalsuperhighway.com
The medical marijuana sector is vital to many other industries. The medical marijuana cog in the big industry wheel allows for flow to be more efficient and that is at the heart of the AlliedSX mantra.
Interested in Listing?
Listing costs £25,000 GBP and takes 8 weeks to process. Contact us at Listing@
MarijuanaSX.com or visit the website, www.MarijuanaSX.com for a qualified listing agent.
Our quotation service is auto on-boarded and allows medical marijuana companies to be represented on MarijuanaSX without services until a full application is made.
We have auto on-boarded over 500 companies to date.
Interested in Becoming a Listing Agent? To become a Listing Agent send details to agent@MarijuanaSX.com
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