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THERE IS A HEALTHY DOSE OF OPTIMISM IN THE
cannabis market. Fluctuations in the general market this year have
caused the sky-high valuations of many public and private cannabis com-
panies to nosedive. “High multiples have come down,” says Troy Dayton,
CEO of the Arcview Group, a San Francisco–based firm that matches its
1,500 investors with cannabis companies, “so there’s excitement.”
In fact, Grand View Research estimates that the market—which
includes legal marijuana and hemp, the nonintoxicating cannabis plant
from which cannabidiol, or CBD, is derived—will reach $66.3 billion, and
CBD sales will top $9.69 billion, by 2025. And even though marijuana
remains federally illegal, 30 states, the District
of Columbia, and Puerto Rico have legalized it
for medicinal and/or recreational use.
“Federal prohibition should not discourage
people from investing in the U.S. cannabis
industry, particularly businesses that do
not have direct contact with the [marijuana]
plant,” says Morgan Fox, media relations
director of the National Cannabis
Industry Association (NCIA), a lob-
bying organization headquartered in
D.C., referring to businesses cen-
tered around agricultural equipment,
IT services, logistics, security, and
packaging. Fox’s advice is being heeded: By September of
this year, investors had pumped more than $9 billion into
the cannabis market, mostly through online trading and
investment firms. (Those skittish about stateside com-
panies can opt for ones in Canada or other countries, like
Uruguay and Luxembourg, that have legalized cannabis.)
Though investments in legal cannabis companies
have been hurt by the recent vaping crisis, federal
regulations that weed out bad actors could be the silver
lining, leaving legitimate companies to capitalize on a
more transparent market and safer products. That is the
hope of Los Angeles–based Pineapple Express, which
operates a thriving local cannabis delivery service (to
vetted adults over age 21) in Southern California, as well
as a CBD unit, Pineapple Wellness, that ships organically
grown, hemp-derived products nationwide.
“ We continue to expand our cannabis delivery foot-
print in the state,” says CEO Shawn Credle, “and add to
our fleet, ultimately reaching over 100 vehicles in daily
circulation.” Additionally, Pineapple Express is set to
open its first retail storefront in Palm Springs, and it
expects additional storefront locations in Los Angeles,
as well as to expand its cannabis delivery operations into
Puerto Rico, by year-end.
Pineapple Express has strategically broadened its
business model beyond cannabis sales by offering opera-
tional management, technology, investments, IP licensing,
and turnkey property rentals to the industry. The company
is currently funded by private investors but is expected to
be on the over-the-counter public market soon, trading
under the ticker symbol PNPL, Credle says.
Pineapple Express supports NCIA’s ongoing work to
pass federal legalization, with the prospect of mar-
keting nationwide. Additionally, NCIA is lobbying for
passage of the SAFE Banking Act, which would allow
financial institutions to lend to the industry. With the
passage of this bill, investors in U.S. cannabis will see
even brighter days ahead. ■
THE HIGHS AND
LOWS OF INVESTING
IN CANNABIS
Though not yet legal in all states,
the cannabis industry offers unique
investment opportunities.
Investors have pumped
more than $9 billion
into the cannabis
market this year.
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