Celebs targeting California marijuana market

Celebrities such as Willie Nelson, the children of reggae legend Bob Marley and comedian Whoopi Goldberg are just a small selection of celebrities targeting the California marijuana market. Laws have recently been passed in California which will allow recreational use of marijuana although there will be strict regulations and those operating in the marketplace will need a licence. It is believed that the first licences for recreational use will be delivered in 2018 and already celebrities are jockeying for position.

Medical marijuana in California

While there is a big debate as to whether marijuana should be legalised are not, California has certainly jumped the gun with marijuana for medical use already legalised. There are an array of medical conditions which are said to benefit from the calming influence of marijuana although some argue that it does influence brain patterns and can bring on depression and other mental health issues. A number of celebrities are looking to partner with approved California growers who are currently operating in the medical market but able to dispense their products to the public. This would effectively give many companies a jump on their competitors when the free for all begins in 2018.

Celebs targeting California marijuana market
Could you soon be smoking Bob Marley branded marijuana?

Leveraging brand names

When brand names such as Willie Nelson, the children of reggae legend Bob Marley and Whoopi Goldberg are bandied around you get an idea of how big the market could be. A number of venture capital companies have also become involved in the marijuana market although traditional Wall Street companies and financial institutions have so far taken a step back. Even though marijuana for recreational use will become legal in California it will not be legal on a federal basis. Therefore the US authorities will refuse patent applications to protect marijuana brand names.

It does seem only a matter of time before the federal laws change but at this moment in time there is some concern and confusion. However, there is no concern about the potential for the marijuana market in California!

How big might the market become?

Despite the fact that many Wall Street giants are keeping out of the recreational marijuana market at the moment there is an array of interesting research available. Financial services firm Cowen & Co believes the market for marijuana could increase from $6 billion to an enormous $50 billion over the next 10 years. We can only guess how big the market might be in years to come if other states follow California.

It is interesting to see that many Wall Street firms are concerned about the overlap between Californian and federal laws and therefore taking a step back from investing in recreational marijuana companies at this moment in time. The fact that the market is expected to grow from $6 billion to over $50 billion in just 10 years will likely be too much for Wall Street to ignore. Quite how they will structure potential investment vehicles going forward remains to be seen as this is still a very delicate subject.

Might you be smoking Bob Marley marijuana in years to come?

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