Investors considering medical marijuana IPOs

To different degrees, medical marijuana is legal in 15 of the United States. The business of supplying medical marijuana shops, and all associated products, can be very profitable. Now, two major marijuana industry corporations have declared plans for initial public stock offerings.

More marijuana use means more companies begin

Medical marijuana has created many new industries. There are several goods the companies offer. They consist of packaging equipment, processing equipment, fertilizers, humidifiers and grow lights. In just 10 years, the marijuana industry can be worth as much as $60 billion. The technology sector of the industry is also continuing to grow. There are wise phone apps to control "grow trailers" now. Also, there's always better hydroponic technology out there. Money is made by many individuals that start medical dispensaries and growth operations. They typically need short term loans to begin though. Typically between 70 and 120 percent market is done in stores.

Initial public offering soon

Companies that directly deal in marijuana exist in a difficult legal gray area. All marijuana is illegal on the federal level. All of the states have illegal recreational use of marijuana. That isn't different. Marijuana for medical use is legal in some states, however federal officials have raided state-compliant businesses in several states. General Cannabis Inc. and GrowOp Technology Ltd. sell equipment to grow your own marijuana. Neither of them sells the substance though to stay away from legal troubles. The corporations are hoping to be put on the stock exchanges for public trade by the end of 2011. The "growth industry" would be traded so many investors could hold parts of the corporations. The companies would get over $10 million from initial public offerings also.

Marijuana finances have problems

Medical marijuana is growing like crazy. Investors want a piece of the action. This growth, however, could be creating another financial bubble. Since medical use was made legal in California in 1992, the price of finished product has dropped from $3,000 or more per pound to $1,800 per pound. There is a lot of competition with warehouse-style operations franchising also. WeGrow is an example. Companies in the medical marijuana industry expect the business to grow. To be able to do that, more states have to make it legal.

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Wall St

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