But youre also at risk because youve invested directly in someone that is technically trafficking in a Schedule I narcotic. Investors can also put their money in companies that dont touch the plant and deal with the cannabis industry in an ancillary way such as digital media, power and energy companies ( growing marijuana is energy-intensive ) and biotech firms. Ancillary companies have less risk, Scatizzi said, but investors would likely receive no cash dividends. Its like investing in any other tech company, Scatizzi said. Youre waiting for Google or Microsoft or Facebook to come in and acquire the companies for millions of dollars. Canada is seen as a growth market since medical marijuana is legal in all of its provinces and a small number of cannabis companies are traded on the stock market there , which may be attractive to investors with relatively small amounts of money. A real estate investment trust based in San Diego , Innovative Industrial Properties, went public on the New York marijuana Stock Exchange last December to buy buildings and lease them to growers of medical marijuana. Cannabis-related companies also trade on the NASDAQ , but many are penny stocks and trade over the counter, where volatility is high and the risks are greater. Many OTC shares are not required to file audited financial reports with regulators, making it tougher for investors to get accurate and up-to-date financial information. Investments in pharmaceutical companies developing drugs from cannabis to treat ailments such as epilepsy and multiple sclerosis may be a natural fit for some investors in San Diego, where the biotech industry has a high profile. Its no difference, Scatizzi said.
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