Business

Marijuana sales have seen a drastic surge since the COVID-19 pandemic hit. There was a sigh of relief in the sector. Notably, the cannabis sector suffered many blows in 2019. Lower earnings, management changes, rising black market sales, legalization challenges, and many other factors impacted the industry last year. The pandemic might help the sector recover its losses. Will the improvement be a one-time surge in sales or will the higher sales last?

Finally, pot stock investors have something to cheer about.

For the past 13 months, the once-hot marijuana industry has been ice cold. Following a first quarter in 2019 that saw more than a dozen pot stocks gain at least 70%, the vast majority of North American cannabis stocks have lost between 50% and 95% of their value ever since.

Every sector of the economy is being disrupted by the COVID-19 pandemic, and cannabis is no exception. However, the cannabis industry is uniquely positioned to weather the current crisis and has the potential to kick-start economic growth when state legislators return to work.

There is a growing number of cannabis companies announcing entry into national & international stock exchanges – here we explore investing in the cannabis industry.

As increasing numbers of countries and states move to legalise and regulate the purchase, production and cultivation of cannabis, the market is responding accordingly.

Right now, marijuana legalization has become more important than ever. The medicinal benefits are evident amid COVID-19. While you would expect people to buy essential items, they have also rushed to stock up on marijuana. As a result, state governments in the US and the Canadian government made marijuana an essential item. Lebanon is the first Middle East country to legalize medical marijuana amid the COVID-19 pandemic.

As shelter-in-place orders drag on and the U.S. economy limps through the second quarter, investors, economists and politicians are asking important questions about what the post-outbreak economy will look like and how quickly the U.S. can replace the 26 million jobs it has lost in 2020.

Many Americans have been turning to cannabis to help them get through the stress of the COVID-19 outbreak, but there’s a strong case that U.S. marijuana legalization could help the economy recover as well.

As the U.S. economy looks to reopen in multiple states, a lot of American cannabis stocks are still trading near multi-year lows despite limited store closures. The cannabis sector got a major seal of approval with most stores remaining open as states unanimously approved dispensaries as essential stores.

From changing product preferences to compassionate pricing policies

The Covid-19 outbreak upended daily business operations and consumer habits in nearly every industry. In the world of legal cannabis, restrictions on business and travel are creating seismic shifts that could potentially restructure the unique culture and idiosyncrasies that define the industry.

Congress will consider including the cannabis industry in the next COVID-19 stimulus package, thanks to a U.S Representative from Colorado. Congressman Ed Perlmutter has introduced a bill that would allow banking services and forgivable loans for small pot shops.

Because pot is illegal under federal law, cannabis businesses are unable to access and participate in SBA’s loan programs—financial support that is designed to pay workers, health care benefits, and family or sick leave.