The U.S. medical marijuana market is currently valued at around $1.7 billion—and growing fast.
Neutra Corp. (OTCBB: NTRR) is one company that’s pushing ahead to form new joint ventures and partnerships in an effort to expand its footprint. Last month, Neutra’s top management scoped out possible ways to break into the market, considering options like offering delivery of better production support technologies, specializing in logistics necessary to emerging medical marijuana companies, or researching and developing highly efficient production systems.
Daily Finance reports:
“We’ve done our homework on this fast-growing field of natural wellness solutions, and now we’re ready to move forward with negotiations with innovators on the industry’s cutting edge,” said NTRR CEO Sydney Jim. “We expect to announce signed letters of intent with exciting, emerging cannabis companies in the coming days and weeks.”
California, for example, is the largest domestic medical marijuana market, and Neutra has set up a subsidiary in Los Angeles—Cannabis Technologies, Inc.—which will look into developing innovations on-site.
It’s likely that demand for medical marijuana and related applications will skyrocket to the point that medical marijuana sales could hit $6 billion within the next five years. That’s a lot of high-quality medicinal buds that would need to be grown.
International Marijuana Attention
And the medical marijuana craze is sweeping across the nation. In April, Pennsylvania and Alabama joined the growing list of states that look favorably on cannabis. The bills that were introduced weren’t radical, but they were clearly symptomatic of the wider support that medical marijuana now enjoys nationwide.
Colorado and Washington are especially attractive markets, and the list of companies to watch out for continues to expand. Present hot picks include Cannabis Science, Inc. (PINK: CBIS), Medical Marijuana, Inc. (PINK: MJNA), and Terra Tech Corp. (PINK: TRTC).
Medical Marijuana, Inc. is on a roll, in fact. It’s actually expanding beyond U.S. borders, hoping to bring its business to the shores of Europe, Canada, and even the Caribbean Islands.
Bear in mind that Italy and the Czech Republic have both recently legalized medical marijuana, and other nations like Denmark already have a history of viewing medical marijuana favorably.
Medical Marijuana’s stock usually goes around the $0.30/share level, but news of its expansion prospects caused an 11 percent jump. Of further interest is the fact that the growth in interest from Europe is accompanied by speculation that European nations will look to import marijuana products from U.S. states (Colorado and Washington feature prominently in these talks). That’s surely cause for cheer.
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The Future of Marijuana on the Market
Quite apart from the medical applications, support continues to grow for recreational use of marijuana. Again, Colorado and Washington are in the lead here; both states have now legalized marijuana for recreational usage.
Evidently, that trend is unlikely to remain restricted to just two states for very long. That’s why we should be following closely the fortunes of the medical and recreational camps and the legislations that respond to them.
Right now, the market is in a very embryonic state, but already we’re seeing several companies pop up to attend to differing needs. It’s rather unstable for the present, and it will likely continue remaining so while domestic laws figure themselves out.
For example, even though some states have approved medical marijuana usage, there are certain conflicts with federal law. Such kinks will need to be ironed out.
And on the international level, there’s little clarity as to how smoothly a U.S. firm may set about developing marijuana for export purposes. It’s all just a completely new market. Expect, therefore, little stability and a lot of fluctuation for quite some time to come.
But alongside that, expect also rapid proliferation in the numbers and varieties of marijuana and related product developers as they seek to carve out their niches within this emergent sector.
Interestingly, Neutra Corp. itself is not exclusively a cannabis-related company. Rather, the company identifies as a developer and marketer of “natural wellness solutions.” Aside from its interest in cannabis and related products, the company makes products as diverse as protective, anti-microbial coatings for various surfaces.
What’s interesting about this is that we could see well-established health and wellness companies take an interest in cannabis and add it to their portfolios—a move that will certainly boost the profile of the marijuana market.
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