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ECOFORMING LIKE NEVER BEFORE: DIVERSIFICATION MAY BE KEY
The 2016 articles laid the ground work to assist Retail Investors identify the likely winners and, more importantly, how to weed out the ones that may not be best suited to one’s risk and portfolio objectives. The first article discussed the Consolidation Curve and how it cannot be avoided (M&A, new players, companies failing, and so forth) and it was only fitting that the year ended with the world’s largest legal Cannabis producer, Canopy Growth Corporation (TSX:CGC,OTC:TWMJF), acquiring Mettrum Health Inc (TSXV:MT,OTC:MQTRF) and that planned merger was case study#1 of the December issue. Ecoforming incorporates the Consolidation Curve and is a term that incorporates all facets affecting the legal cannabis and hemp industries.
2017 will likely be a year of continuous Ecoforming and the landscape in December may be unrecognizable compared to what it is right now in January just as the current landscape does not resemble the landscape from not that long ago. The October article, when referencing the ruling by the 9th District Court of Appeal, put forward the question as to “how long will it before businesses that are in full compliance are granted full banking rights and privileges and other relevant treatment such as Section 280E of the Federal Tax Code.” On January 11, 2017 it was reported that the Senate Banking Committee may pave the way to bring banking to facets of the legal Cannabis Industry. There have also been statements made that suggest turning the clock back is not a priority of the new government. For those concerned about a recent DEA statement targeting Industrial Hemp and CBD, please read the article titled “The Tangled Web of Industrial Hemp and CBD Just Became More Tangled” written by Jeffrey Friedland in the December issue of CANNAINVESTOR Magazine as this article clearly and accurately details that decision and its implications. On January 13, 2017, Hoban Law Group filed a ninth circuit petition challenging the DEA’s recent decision relating to “marihuana extracts”.