The medical marijuana sector is in a race to find ways to capture the billions of dollars in profits that are expected from the industry.
The industry’s leaders are hoping to capture as much as $1 trillion in annual revenue by the end of the decade.
Investment banks are banking on a medical marijuana boom.
They are banking that medical marijuana is the future of investing and their clients will be patient-centric and buy in to the industry’s vision of a future that is based on the principles of the medical revolution.
Medical marijuana has received an enthusiastic endorsement from President Donald Trump.
Trump has called the industry a “game changer” and has pledged to legalize and regulate the drug, and said the government should not interfere with it.
But it’s unclear if the Trump administration’s crackdown on the industry will end up being a blessing or a curse for the industry and its investors.
“We have to start by figuring out what the next four years look like,” said Peter A. Johnson, the CEO of investment bank Bain Capital, a prominent financial services company that has been a major backer of medical marijuana companies.
Johnson’s company invested $400 million in Cannabix, a cannabis-based product, and it is currently a client of Cannabay Capital Advisors, a private equity firm that also is backing other medical marijuana firms.
Johnson said the investment bank is now focusing on other medical cannabis companies that have been established over the past few years, such as Medi-Zen, Inc., a maker of CBD oil and a pioneer in the medical cannabis industry.
Johnson said he expects to be “very bullish” on Cannabex and expects Cannabax to go public within the next two years.
Johnson expects Cannax to become a $1 billion-plus business.
The company has already raised $1.5 billion and is expected to raise more capital in the next six months, Johnson said.
“It’s a lot more of a high-growth industry than we thought it would be,” Johnson said, adding that Cannax will have a valuation of at least $4 billion by the time the first of its two CBD products hits the market.
Investors are betting on a large return for investors.
The Cannabapay stock index has increased more than 300 percent in the past year, according to data from the Nasdaq Biotechnology Index.
Investor Peter A Johnson said that the investment banks are betting that Cannabx will go public.
The investment bank has invested $40 million in the company.
Johnson noted that the medical market is booming.
According to the Cannabis Business Daily newsletter, the industry has experienced a 3.6 percent increase in new medical marijuana applications in 2017, compared to 2016.
Johnson also noted that new medical applications have been pouring into the market in the first six months of this year, making the industry even more vibrant.
The investment banks and the medical industry are trying to find a way to capture these revenues.
Johnson and Johnson said the investments they are making are geared towards the investment banking industry, where many of the largest institutional investors are invested.
Johnson also said he believes the investment industry is “looking for a silver lining in this current environment.”
He said there is a growing appetite for marijuana in the U.S. and in Europe.
He said Cannabalsays they are also seeing demand from investors who are looking for ways to hedge against the current uncertainty surrounding marijuana regulation.
“A lot of investors are looking to hedge on their exposure to the financial markets and that’s an opportunity to buy in and invest in a company that’s looking to capitalize on the potential for medical marijuana,” Johnson added.
The Cannabaysays, who also invest in private equity funds, said they are looking forward to investing in Cannax and hoping to take a minority stake in Cannablax, Cannax’s parent company.
Johnson told Business Insider that Cannablays plans to raise an additional $500 million to go private.
Investments from the medical banking industry are typically priced based on how much money a company can generate.
Johnson estimated that Cannabiscan generate $4.5 trillion in revenue by 2020.
Investers are hoping that Cannayax can make money off of its product.
The financial market is saturated and Cannabashave the company has the right people in place to help it become profitable, Johnson told BI.
Johnson noted that Cannabyax has had a very stable financial profile and that Cannabsays investors are very savvy and can understand the business.
Johnson added that Cannapeas goal is to become “a leading provider of low-cost, low-risk investment products.”