Cannabis: tips for succeeding in the growing market

According to ArcView Market Research and BDS Analytics, worldwide spending on cannabis topped $12 billion in 2018. By 2022, the projected increase is expected to be more than $31 billion – with a compound annual growth rate of 26.7%.

Naturally, this is no surprise to us, as we encounter many investors, week in, week out, who are excited by the potential in publicly traded stocks in the sector. Here are several key things investors look for in a cannabis company:

Recognising the product and company

Naturally, investors will not only want to know what they’re buying (whether it’s medical or recreational for instance), whether the stocks are related to canopy growth, cannabis biotechs and pharmaceuticals, or ancillary products and services supporting growth and cultivation.

They will also be looking closely at the management team of the company, their growth strategy, position in the market and current financial status and potential. Also investigating the international operations of the company, and any perceived ‘glut’ in the product across the sector.

The positive news here, of course, is that even though the sector in Canada has significantly expanded, and could create a temporary glut in supply, medical marijuana in Germany and the UK is thriving – contact our London or Frankfurt offices for more details on how to expand your company in Europe.

Understanding sector dynamics

With Cannabis still being a relatively recent addition to the market, the dynamics across the sector are rapidly changing – and could continue to do so from month to month. When we’re working with companies on their investor and public relations, we find that a proactive approach to anticipating and responding to change works most effectively in both the short and long term here.

However, with change ironically being something of a constant in the market, it can make investors slightly hesitant to engage fully with the opportunities in the sector. Hence, it’s absolutely crucial that your company and product continues to be perceived positively, and that you are a knowledgeable, progressive identity in the market.

Convincing the right people that a long-term strategy will ultimately become beneficial for everyone involved is key, so your profile becomes just as much a selling point as your product. This is why our global team of investor relations professionals dedicate ourselves to boosting the value in your company, raising your profile to levels that attract interest, scrutiny, and ultimately – investment.

Get in touch with our offices in London, New York, Vancouver, or Frankfurt to find out how we can place your company in the most opportune position in the global cannabis market.



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