I call it the “holy grail” of the cannabis industry – a game-changing event that would mint the first cannabis billionaire and richly reward early investors.
I’m talking about the federal legalization of cannabis.
Some say it’s still a pipe dream, years away at best. However, the reality is that federal legalization could be right around the corner.
If you don’t believe me, check out what the CEO of the largest cannabis company had to say in an interview with Jim Cramer on Mad Money.
Here’s the clip from CNBC.
David Klein, the head of Canopy Growth, told CNBC’s Jim Cramer on Tuesday that as states continue to gradually permit medical and recreational use of marijuana, Congress will have no choice but to act.
“My assumption is that 2022, for me, is the magic number,” he said in a “Mad Money” interview. “I think, as you watch more and more states move to legalization for medical or rec, you really bring in almost two more senators each time who are really going to feel compelled to not make criminals out of the people in their state who are doing what’s legal in their particular state.”
Why Klein’s Comments Are an Important Signal
#1 – CEOs have an incentive to establish realistic goals that are attainable. It doesn’t do a CEO any good to set expectations really high and then fall short. For Klein to publicly project legalization in 2022, it tells me he knows about things that are happening behind the curtain. I think he’s showing his hand.
#2 – U.S. federal legalization by 2022 is the most optimistic projection that I’ve heard from anyone on Klein’s level.
#3 – As the CEO of Canopy, Klein has access to the best contacts and information in the industry. His opinion about the cannabis industry carries a lot of weight.
Current Events Are Pointing Towards Legalization
COVID-19 just made the case for legalizing cannabis stronger than ever. The U.S. economy shed around 40 million jobs in eight weeks. According to recent reports, many of those jobs are never coming back. Tax revenue has plummeted. Officials are calling it catastrophic. Politicians are desperate for new sources of taxes. Continue reading "Canopy CEO Predicts U.S. Legalization by 2022"