We've been talking about a marijuana stock gold rush in this space for years.
But what we're looking at in 2019 is unprecedented. We're expecting an initial public offering (IPO) rush in marijuana stocks.
The marijuana IPO rush is likely to be precipitated by two events in the next 12 months.
These two events are happening because more than 60% of the United States has legalized medical cannabis.
This means that the marijuana is less taboo than it once was, and the IPO rush will bring even more opportunities to profit in the legal cannabis sector.
Alexander Topchishvili, a member of the advisory board for The Blinc Group, sees the first major event fostering the IPO pipeline for marijuana companies being the embrace of big banks.
Banks have largely kept away from the marijuana industry. Cannabis is, of course, still illegal on the federal level, despite the many states legalizing it.
And banks are regulated by the U.S. government.
Big banks don't like risk, so they never wanted to lend money or open business accounts for marijuana companies.
That was bad news for the cannabis business. Start-ups of all types depend on loans to grow and to survive.
LEGAL WAVE: Barriers to marijuana could be tumbling in Mexico and Thailand, but it's here in the U.S. where legalization could spark a "Green Rush" in certain stocks. Click here to learn about three of them...
Marijuana businesses are no exception.
The hesitation on the part of big banks to serve marijuana businesses also meant that big banks never wanted to underwrite a marijuana IPO. Without the ability to do an IPO, it became harder for the companies to go public. Underwriters promote the IPO to potential investors in exchange for a fee. The interest garnered helps IPO underwriters determine a good offering price for the IPO.
But times are changing between the big banks and the pot industry...
Big Banks Will Help Lead the Marijuana IPO Charge
The more financial institutions get on the marijuana train, the more IPOs are likely to occur.
As Topchishvili points out, many banks don't publicize their marijuana clients, but many may be working quietly with some legal cannabis companies.
The more banks that work with cannabis companies, the more legitimate the business grows. The more legitimate the business grows, the more opportunities for major underwriters blossom.
But outside of banks and cannabis companies working together, there is yet another event that might really get the marijuana IPO party started.
And it could lead to a massive windfall in profits...
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New York State might soon legalize cannabis. If it does, it could cause other states to go ahead with legalization.
Gov. Andrew Cuomo (D-NY) might make access to cannabis much easier because he looks across the river to what a neighboring state is doing.
You see, Gov. Phil Murphy (D-NJ) wants to legalize all the cannabis use in New Jersey.
Plus, recreational pot sales will begin in July in Massachusetts, which borders New York.
The more states close to New York that legalize pot, the more New York State residents will be likely to drive or take a plane or train to pick up legal marijuana.
New York is the fourth largest U.S. state. If it were to legalize pot, it would be a huge win for the industry.
Millions of dollars in legal pot sales in New York are likely if legalization takes place.
Plus, the more populous states that legalize pot, the more likely full legalization becomes.
It's a domino effect.
Governor Cuomo is apparently increasingly open to the notion of legalizing pot as a way of generating revenue for the state.
If that happens, more IPOs are likely, as companies can start setting up farms, dispensaries, and all things marijuana-related in New York.
America's Green Gold Rush Is Just Getting Started - Claim Your Stake Now
At this very moment, big investment firms and members of the Fortune 500 are building enormous war chests.
They're preparing to push billions upon billions of dollars into the cannabis market - and they could strike at any moment.
So right here - right now - you have a once-in-a-lifetime opportunity to beat them to the punch and stake your claim.