Author: Jeevan A. Robinson - MNI Media | Date: 17 October 2018
Paul Rosen is the CEO of Tidal Royalty, a company that invests in U.S.-based cannabis companies. Paul is also the Co-Founder/Former President & CEO of the Cronos Group, arguably one of the most well known publicly (NASDAQ) traded cannabis investment firms with a $2 Billion+ market cap.
He recently commented to MNI Media on the future of cannabis in the U.S. after Canadian legalization that took place today:
"It is inevitable and imminent that cannabis will be legalized in the United States. My forecast is cannabis will become legal in the U.S. sometime in the next four years, around 2022 that the industry will really be unleashed here, after the next federal election."
Paul further mentions;
"The real investment opportunities in the cannabis industry are in the U.S. - I believe the U.S. will need about $300 billion in investment into the industry in order to keep up with demand for the next few years."
Paul's thoughts on investing in the Cannabis industry:
"We’re getting ready to make a shift in how we evaluate these companies. They've been evaluated on an emotional basis - the feeling that this is the end of prohibition. You need to look at earnings and projected earnings. There are some companies that are trading at 200x revenue. In my opinion there will be several failures across Canada. Sometimes the forest has to burnt down before its healthy."
He further states to MNI:
"As we go forward there will be too much production and not enough international opportunity. Most companies don't have enough cash to dominate - not all will be M&A targets. Some will fail and thats like any industry, its a sign of maturation in the industry."
On the future of the industry Paul says:
"This industry is definitely worth the investor attention. Global sales connected to the cannabis plant - Marijuana, CBD and Hemp… will be in the hundreds of billions of dollars."
How much investment money is needed to build the industry in the U.S?
"Paul believes that the U.S. will need at least $300 Billion in investment into the industry to keep up with the demand over the next few years."