Although its summer, there has been a steady stream of good news about medical marijuana even though important small cap marijuana stocks Medical Marijuana Inc (OTCMKTS: MJNA) and Cannabis Science Inc (OTCMKTS: CBIS) have been fairly quietly lately while Growlife Inc (OTCBB: PHOT), a more indirect play on the spread of legalized marijuana, has produced some news for investors:
Private Equity Funds Betting on Marijuana. Reuters has an article noting that while Wall Street remains wary of investing in marijuana, there are two small private equity funds bucking the trend. One firm, Privateer Holdings, has apparently just closed on a $7 million first round of fundraising plus it has named Michael Auerbach, an investor with ties to former U.S. Secretary of State Madeleine Albright, to its board of directors. Another round of fundraising for Privateer Holdings will begin in the fall and it won't be for less than $25 million. Aside from Privateer Holdings, the only other fund raising money with the sole purpose of cashing in on the marijuana industry is Emerald Ocean Capital, a division of Southern California-based venture capital firm Ghost Group. The High Cost of Marijuana. PolicyMic.com has a lengthy article about how much marijuana prohibition laws are costing taxpayers. The article quoted FBI figures that 43.3% of all "Arrests for Drug Abuse Violation" are for possession of marijuana and 6% of all drug-abuse violation arrests were for the "Sale/Manufacturing" of marijuana – meaning 49.5% of all drug-violation arrests are connected to the drug. With 757,969 individuals incarcerated for marijuana abuse at a cost of $21,006 a year, $15,921,896,814 is spent to keep these individuals imprisoned for one year. Over more than 30 years, the total bill comes to $585 billion. Problems in Denver Which Need to be Addressed. Although the city of Denver is viewed as a national leader in its regulation of medical marijuana and the city has the most dispensaries in the state, however, the Denver Post has noted how a recently released audit found serious problems with how the city licenses, tracks and manages the industry in the city. Moreover, the lack of oversight can potentially cost the city millions in lost tax revenues and put neighborhoods and citizens at risk. With that said, Michael Elliott, the director of the Medical Marijuana Industry Group, said Denver has done the best it could with limited resources plus he added: "We think the recommendations in the audit are valid and a good path forward," Still Quiet With Key Small Cap Marijuana Stocks. Small cap Marijuana stocks Medical Marijuana Inc (which aims to be the premier cannabis and hemp industry innovator) and Cannabis Science Inc (which is focused on the development of cannabis-based medicines to satisfy unmet medical needs) are considered to be the most "legitimate" direct small cap marijuana stock plays. However, neither have really been producing any new news lately, but its also the middle of summer. Growlife Inc Hires a New Executive. Growlife Inc, a provider of indoor growing technologies and unique lifestyle brands along with Cannabis.org, an information portal for the medical marijuana industry, has just announced that Randy E. Breitman is joining the management team as the Director of Business Development. The press release stated that as a business owner, Breitman has more than a decade of executive experience for guiding technology and strategic planning and that he will be essential as GrowLife expands its business development activities on the East Coast and in the greater New York area - his base of operations for the company. Growlife Inc also recently announced the opening of a new retail location in Plaistow, New Hampshire, plus the company has announced an upward revision to its adjusted revenue guidance for the remainder of the fiscal year with $760,709 in revenue being reported for the first quarter and $925,000 expected for the second quarter, $1,810,000 for the third and $1,955,000 for the fourth. Lastly, Growlife Inc announced the completion of its acquisition of Rocky Mountain Hydroponics, LLC, Evergreen Garden Center(s), LLC and on-line portal 58Hydro.com to make the company the largest and most diversified conglomerate focused on indoor gardening in the USA.In other words, it might be summer but the slow steady march of legalized marijuana goes on – something that is bound to benefit cap marijuana stocks Medical Marijuana and Cannabis Science along with Growlife Inc.
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