For all that’s worked in favor of marijuana stocks in recent years, there are plenty of risks. Some of these risks, such as profitability eluding most pot stocks, are readily apparent. However, there are quite a few hidden or non-apparent risks that could ultimately destroy shareholder value. Here are five of those hidden risks you should be aware of if you plan on owning marijuana stocks.
California Cannabis Surety Bond Program Approved by Insurance Commissioner
California Insurance Commissioner Dave Jones has been on a mission to ensure state-legal cannabis businesses have commercial insurance coverage and with his announcement of the first California cannabis surety bond program on Feb. 21, 2018, he continues to make progress.
Failed Applicants Sue Ohio Over Medical Cannabis Licensing Process
More strife is on the horizon for Ohio’s troubled medical cannabis program. On Feb. 20, 2018, a group of unsuccessful medical cannabis applicants, led by Jimmy Gould of CannAscend Ohio LLC, filed a lawsuit challenging the state’s medical cannabis licensing process.
Province of Newfoundland and Labrador Issues RFP for Cannabis Retailers
While the province of Newfoundland and Labrador has its key policies in place for recreational legalization and has secured a supply agreement with Canopy Growth Corporation (TSX:WEED) to provide cannabis for the province, it is now ready to hear from prospective cannabis retailers.