From the growers to the dispensers, the investors to the politicians, and the green in your bong to the green in their pockets, we're interpreting the detailed happenings in the budding wide world of business.
"Pot Bust: The SEC Issues a Warning on Marijuana-Related Investments"
The US Securities and Exchange Commission warned investors this week of an increase of complaints about marijuana-related investments. Five companies have already been temporarily suspended by the securities watchdog because of questions about their legitimacy as well as potential market manipulation.
Additionally, as BusinessWeek notes, "While 20 states and the District of Columbia have legalized some marijuana-related activity, there’s the risk of federal criminal prosecution of cannabis businesses under the Controlled Substances Act." Furthermore, with such small companies comes even bigger risk for your investment -- microtraps as they are called. History shows that fraudsters tend to follow the headlines just as closely if not closer than the average investor, leading them to get involved with the latest hot market -- which today happens to include marijuana.
Moral of the story: Be careful and do your research.
"Innovation Fuels New Cannabis Based Skin Care Medicines"
The medical marijuana business is ripe for the picking if you have the resources to get started -- and New Colombia Resources has just those resources. They are a US company with coal and other resource assets in Colombia that have made a small fortune. Moreover, they have a partnership with a pharmaceutical company -- Farmatech SA -- in Medellín. The two partners are in talks to conduct the legal research and development of cannabis based medicines.
"This program will benefit our efforts for approvals for research and development of legal cannabis based pharmaceutical products in Colombia," stated John Campo, President of New Colombia Resource, Inc. If successful in the Colombian test market, you will surely see their products seep into the larger US market.
"These Roadblocks Are Killing Marijuana Advertising's Vibes"
By all accounts, marijuana activists are made incredible strides in legalizing marijuana and changing public perception through successful PR and advertising campaigns on the state and federal levels. Yet, now that marijuana products are being marketed for consumer sales, the industry as a whole is face roadblocks.
Business Insider recounts: "A pro marijuana legalization ad from Weedmaps, the self-described "Yelp! for pot," was supposed to be displayed on an electronic billboard in Times Square beginning in April. But CBS asked Neutron Media to pull the ad while its legal department reviews the propriety of it. CBS has veto rights even though it does not own the billboard since its logo is on it."
Are the big boys trying to stamp out marijuana with plan old censorship? Absolutely, but it won't work for much longer and even they know that.
It's a contentious issue for sure though -- and most of the backlash has to do with influencing the youth. As Steve Pasierb noted in a recent PFDA blog post regarding marijuana ads: "Kids are still more likely to smoke marijuana than adults and even twentysomethings, presenting a real marketing conundrum for marijuana retailers who seek to increase their business and expand their markets."
According to the Supreme Court, if the product is legal, then you can't ban advertising...and therein lies the conundrum.