As Canada’s recreational cannabis legalization start date draws near, many investors are interested in investing in the cannabis industry but don’t know where to begin. The following is taken from Halifax America’s upcoming ebook, 15-Minute Guide to Investing in Cannabis.


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Know the Different Types of Businesses in the Cannabis Supply Chain


In order to better assess a company’s revenue prospects, it helps to understand a) where it belongs in the chain of production, b) its target market, whether B2C or B2B, and c) the risks it faces with regard to competition, market environment, and legislative challenges.


  • Cannabis Growers focus mainly on cultivating, harvesting, and distributing cannabis as a crop.


  • Cannabis Biotech Companies focus on developing cannabinoid-based drugs.


  • Packaging and Marketing Companies provide services to help brand pot products.


  • Dispensaries offer products directly to the end customer. In some cases, companies that operate dispensaries are vertically aligned, operating as growers in addition to distributors.


  • Streaming companies may be involved in various aspects of the production and distribution process. But their main business model is to help finance other growers in exchange for a percentage of crop, which they can then turn around and sell for immediate revenue.


  • Cannabis Farm Real Estate Companies own land and facilities that are then rented to smaller or mid-sized growers. Their main source of revenue stems from their leases and management fees.


  • Cannabis Nutrient Companies focus on providing fertilizer and other nutrient-based products for cannabis growers.


As you can see, there are many aspects to the production process in the cannabis industry. This gives you the opportunity to diversify your investments into various parts of the supply chain.


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