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CANNABIS INDUSTRY IN THE TRUMP ERA

by | Dec 19, 2016 | Politics

December 19 2016 – This morning Marijuana Business Daily’s “Chart of the Week” provides executive insight into their company’s plans to navigate 2017 based on the election of Trump.

Key Highlights:

  • Nearly 20% of cannabis companies are changing up their growth plans for 2017 based on the election;
  • Roughly 80% of respondents say the election hasn’t affected plans for 2017 so far.

To be sure, the Trump administration is sending a mixed message to the industry, with appointees Tom Price and Jeff Sessions being hostile to the industry, while Peter Thiel, investor in Privateer Holdings, has Trump’s ear as an advisor and advocate.

Likely that access to capital will be the ultimate determinant of cannabis executive strategy heading into 2017, and until it gets sorted out whether the Price/Sessions contingent or Thiel will ultimately impact policy under the new administration look for more volatility in the capital markets.

The $6-7 billion industry is counting on access to capital to continue to fuel growth capital. Expectations are that hedge funds will be investing into the sector to the tune of $21-$22 billion by 2020. For now, investors can take comfort in Congress’ re-authorization of the Rohrbacher-Farr amendment, which prohibits the Justice Department from interfering in state-authorized medical cannabis programs, but that expires April 28, 2017. The provision was included in short-term spending legislation (House Resolution 2028) so that means members of Congress are going to have to re-authorize the amendment annually.