Medical marijuana businesses plan for public stock market IPO

To varying degrees, medical marijuana is legal in 15 of the U.S.. The industry surrounding medical marijuana could be a very profitable one. By offering public stock, two relatively small corporations in the U.S. are hoping to get even bigger. These stock offerings will likely raise millions of dollars. Source for this article – Investors considering medical marijuana IPOs by MoneyBlogNewz.

More marijuana use means more businesses start

Medical marijuana has created several new industries. The purposes of the companies are to give humidifiers, fertilizers, grow lights, packaging equipment, processing equipment and more. Estimates say the marijuana industry could possibly be worth $60 billion or more within 10 years. There is nevertheless a growth of the technology part of the industry. There are intelligent phone apps to control "grow trailers" now. Also, there's always better hydroponic technology out there. Money is made by many individuals that start medical dispensaries and growth operations. They generally need short term loans to start though. Grow stores have a huge markup. It’s typically 70 to 120 percent.

Possible initial public offering

Corporations that directly deal in marijuana exist in a difficult legal gray area. Federally, marijuana is always illegal. All of the states have illegal recreational use of marijuana. That isn't different. Marijuana for medical use is legal in some states, however federal officials have raided state-compliant companies in many states. two companies — GrowOp Technology Ltd. and General Cannabis Inc. — both keep away from this legal gray area by selling the technology and equipment, however not the actual substance. By the end of 2011, the businesses both have plans to become publicly traded. They hope to get on the stock exchanges very soon. The businesses can be able to rise over $10 million with initial public offerings while allowing investors to hold a bit of the "growth" industry that keeps making money.

Marijuana finances have problems

Investors want to get in with the medical marijuana industry considering its growth. This growth, however, could be creating another financial bubble. Since medical use was made legal in California in 1992, the price of finished product has dropped from $3,000 or more per pound to $1,800 per pound. WeGrow is an example of warehouse operations that are starting to grow very quickly. Companies in the medical marijuana industry expect the business to grow. To be able to do that, more states have to make it legal.

Articles cited

Wall St

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