Viridian Capital Releases New Cannabis Industry Analysis
February 25th, 2015
Policy, Top News
Publicly traded cannabis stocks gained 38.4% in 2014 and are likely to attract more institutional funding moving into 2015, according to a new report by Viridian Capital & Research, titled Cannabis Stocks: 2014 Review and 2015 Outlook.
The top performing sub-sectors of the cannabis industry in 2014 included consulting services (+496.4%), biotechnology (+120.8%), and infused products and extracts (+51.2%). While the cannabis industry handedly outperformed major U.S. equity indexes, the majority of those gains occurred during the first quarter with a subsequent shake-out resulting in steep declines across many different equities in the space.
Figure 1 – Sub-Sector Performance – Source: Viridian Capital & Research
There are a number of key industry growth drivers that should help jumpstart equity performance, according to the Viridian Capital & Research report, but there are also a number of risks that investors in the space should consider.
The ongoing legalization of medical and recreational marijuana throughout the U.S. should help improve underlying growth rates throughout 2015, with the anticipated addition of Alaska, Oregon, and Washington DC. Ballot initiatives in larger states like California could also have a significant impact on the movement, if approved. The popularity has grown so much that the issue could even be seen during the 2016 Presidential elections.
Despite the bullish macro picture, there are many challenges that remain throughout the industry. Institutional investors are becoming increasingly involved in the space, but the quality of many already-public companies are questionable, with toxic financings that have resulted in poor-quality balance sheets. The industry’s early stages also mean that there are few quality controls in place and systemic risks to the ecosystem still remain.
Cannabis investors looking for more information, including a sector-specific breakdown, can download Viridian Capital & Research’s report for free at their website: http://viridiancr.com/industry-report/.
Viridian Capital & Research was built with the intention of filling the financial and strategic void in the current Cannabis Sector. VCR is a specialized boutique banking and strategic advisory firm that provides research, investment banking, investor relations and corporate development services to emerging growth companies in the cannabis sector.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.