CBD is perhaps the single fastest-growing market right now.
Get this: According to a new report by Market Research Future, the global CBD market is projected to grow at a whopping 125% CAGR over the next five years to reach $2.2 trillion.
125%!!!
That far surpasses all other CAGR estimates for every other major developing market.
Artificial intelligence, virtual reality, cybersecurity, biotechnology, renewable energy… none of these markets are expected to grow as much over the next five years.
And there’s a pretty good reason the CBD market is exploding…
Fact is, there are tens of millions of people in the United States and hundreds of millions around the world who want a more natural alternative to prescription drugs to treat pain, anxiety, depression, and a host of other inflictions.
The most commonly prescribed drugs for pain include:
- Hydrocodone
- OxyContin
- Fentanyl
- Demerol
- Percocet
- Dilaudid
Each one of these drugs is among the most additive and dangerous on the planet.
According to the Centers for Disease Control (CDC), the number of overdose deaths involving opioids, such as the drugs listed above, was six times higher than in 1999.
In 2014, there were an average of 52 deaths per day due to prescription painkiller overdoses. Today, the CDC says 130 Americans die every day from an opioid overdose.
Those drugs are too dangerous. And people simply want a safer alternative. CBD is it. And there’s one specific company I want to talk with you about today that’s setting itself up to be the next major CBD player.
Led by a team of industry and medical experts, Florida-based Jushi Holdings (OTC: JUSHF) has been called “one of the fastest growing cannabis companies on the East Coast.” The company is rapidly assembling a market presence across the U.S. through investments and partnerships in key states like California, Nevada, Pennsylvania, Virginia, and New York, as well as in the Midwest, focusing efforts on both cannabis and hemp-derived CBD industries.
Through the company’s subsidiary (Sound Wellness) and adult-use brands (Beyond/Hello, The Clinic, The Lab, and The Bank), Jushi is building out a vertically integrated CBD company by controlling all elements of the supply chain including cultivation, processing, extraction, refining, and creating finished product.
In just 18 months since setting up shop, the company has raised $138 million and established a presence across multiple limited-license markets and jurisdictions. Right now Jushi has 25 retail locations as well as two cultivation and three extraction and processing locations.
In New York, the company has secured one of only two hemp licenses in NYC. The other license owner is the 800-pound gorilla of the cannabis market, Canopy Growth Corp.
But perhaps the biggest opportunity for Jushi right now is in Pennsylvania, where the governor has just announced he is in favor of legal recreational-use cannabis in the state. PA is also the location of most of Jushi’s operations.
Another target for Jushi is in Virginia. Right now, cannabis is barely legal and reserved for only the most serious medical conditions. There is no meaningful commercial business in the state. But that will change sooner or later. And Jushi will be there when it does.
But Jushi’s growth plans are not limited to the U.S. The company is also actively evaluating investment opportunities in Europe.
In a sense, Jushi is a ground-floor opportunity to get in on a cannabis firm just as it is coming together. I think that over time, this company will be just as important as the more well-known cannabis firms today.
It has all the hallmarks of a company about to achieve very fast investment success: strong management, branding, national scale, a clean capital structure, significant discount valuation to peers, huge growth, and a top acquisition target to boot.
For more information on Jushi, check out the company’s website by clicking here.
Or, better yet, take a look at Jushi’s most recent investor presentation.
To your wealth,
Energy and Capital Editors
