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The Cannabis Industry Evolves

Written by Alex Koyfman
Posted December 20, 2018 at 7:46AM

Dear Reader,

Ask a random person on the street to describe what he thinks a modern legal cannabis grow operation might look like, and you'll likely get an answer like this:

A quiet, isolated, picturesque piece of land, somewhere out in the Pacific Northwest, where the early morning haze gives way to sunshine sometime in the late morning. 

On this land, rows of crops grow either out in the open or perhaps in some dilapidated warehouse-style structure where second- or third-hand climate control and irrigation systems work around the clock to just barely maintain the proper conditions for cultivating the finicky plants.

While a dreadlocked master grower who learned his trade in his parents' attic walks the rows and examines the product, a small army of droopy-eyed, slack-tongued helpers moves lazily about, surrounded by a constant cloud of marijuana smoke. 

Somewhere off to the side, a main residence holds a dangerously overcrowded main dorm.

The bathroom is unspeakably filthy. The kitchen isn't much better. The floor hosts dozens of sleeping bags. Everything reeks of stale joints, body odor, patchouli oil, and parental disappointment. 

In the middle of the cramped living room, amidst fits of howling laughter, a toga-clad woman in her mid-30s, calling herself Hot Quasar, loudly recites to a circle of stoners the story of how a society of ancient witches from a distant planet came to Earth eons ago to escape the patriarchy, only to unwittingly reestablish it here by artificially evolving spider monkeys into modern homo sapiens. 

Needless to say, this image of the nascent North American legal cannabis industry is hardly flattering.

But today, it's also inaccurate.

The Smoke Clears

Though modern legal grow operations may have once resembled this bleak scenario in one way or another, today, they have evolved into something far more businesslike.

Today's model features fewer dudes with dreadlocks and vintage VW microbuses and more guys in custom-tailored suits, traveling in private jets. 

One such company, which epitomizes this latest wave of cannabis industry development, has come up with a business model that makes it seem less like a plant-growing operation and more like a highly diversified multinational corporation. 

It operates in several nations, including the U.S., Canada, and Italy. It owns thousands of acres of land across these regions, developing product both indoors and outdoors, all year round, despite climatic restrictions. 

It doesn't just grow cannabis but also operates labs and product development facilities to work on such modern consumer-friendly products as soft drinks. 

The facilities themselves look less like greenhouses and more like vast laboratories, complete with their own off-the-grid sustainable power sources and scientists with advanced degrees keeping a close eye on every aspect of the environmental conditions. 

Business Degrees, Armani Suits, and Gulfstream Jets

Most important, however, is that the company doesn't view itself as a cannabis company at all, but rather a real estate management firm that happens to specialize in the development and administration of cannabis-producing properties. 

The cannabis being grown in these high-tech facilities isn't actually theirs.

Instead, it belongs to a long list of tenants, with product brands already well established across the world, who develop their inventory in highly controlled conditions using proprietary methods.

The executives in charge of this company aren't business school dropouts or trust fund babies looking for a hobby, but seasoned executives with years of experience developing products for corporations such as Coca-Cola. 

Stepping back for a moment, if you're the kind of person who has avoided cannabis stocks like the plague because it all just seemed a bit too unstable, a bit too trend-driven, a bit too flaky for you, please understand this: I agree with you completely. 

Up until recently, that was me in a nutshell.

It Made Me a Believer

I have a confession to make to you:

Though the prospect of a rapidly changing legal landscape for a highly in-demand product was compelling to me, the starry-eyed insanity with which the investment community approached it turned me off. 

But with this new breed of cannabis company, my reservations have finally been silenced. 

This new breed is throwing out the old ways and replacing them with all the aspects of modern enterprise, bringing, above all else, the elements of control and precision. 

This company I've discovered, as I've already mentioned, functions less like a grower and more like a real estate investment trust. So important is this nature that it's even evident in the company's name. 

To get that name, and to learn everything else there is to know about it, I urge you to check out an in-depth research report I recently completed on the topic. 

Access is free, but it's vital that you look at it sooner rather than later. 

With the recent correction in the market, share prices are likely as low as you'll ever see them again... so don't wait another minute. 

Click here.

Fortune favors the bold,

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Alex Koyfman

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Coming to us from an already impressive career as an independent trader and private investor, Alex's specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.

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