Cannabis sector

About the cannabis sector package

Over the past decade, a number of countries and US states have legalised medical or recreational cannabis, and hemp-derived products such as CBD have reached mainstream shops. Companies across farming, manufacturing, retail and healthcare have grown out of those changes.

The sector is still young, and it is unusually exposed to changes in the law. In many places cannabis remains illegal at the national level, which limits access to banking and to major stock exchanges. Many listed companies are small, trade on lightly regulated markets, and have seen their share prices swing widely.

Why investors consider the sector

• Growth potential. As laws change, the market could expand, and early investors could benefit.
• A broad industry. It spans medicine, agriculture, consumer goods and technology.
• Investor interest. For some people it also fits their personal values or interests.