The global coronavirus panic is the latest crisis set to roil the cannabis industry.
Thus far the cannabis supply does not appear directly threatened. But companies anticipate disruptions with vape related hardware, the vast majority of which comes from China. WW California has more.
- “We’re in the middle of this capital crunch – this Darwin phase… And (coronavirus) is only exacerbating the situation, because it’s just causing uncertainty,” Morgan Paxhia, managing director of cannabis investment firm Poseidon Asset Management said.
- Matt Karnes, founder of consultancy GreenWave Advisors, said the sectors’ public companies, already hammered by their dismal stock performance, are most vulnerable.
- At the same time, it may create opportunities for investors as valuations deflate to more reasonable levels, Merida Capital Partners managing partner Mitch Baruchowitz said.
- As China’s hemp industry suffers, the virus also creates an opportunity for U.S. hemp growers.
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- The virus has led to the cancellation of industry events in Israel and California. Some, such as the NoCo Hemp Expo in Denver, appear to still be on.
- If the virus continues to spread, it could cancel 4/20 events.
- The crisis could also delay New York Gov. Andrew Cuomo’s effort to legalize REC.
Leafly looks at how the epidemic may change cannabis use.
- The post tells users to stop sharing joints and other inhaled consumption methods. Users may also want to invest in a “bong condom,” like the “Mouth Peace” from Moose Labs.
- If you catch corona virus, MED use may not be a good idea.
Here’s a thought I didn’t see anyone else share: A major crisis that forces people to spend more time at home surely has some upside for the cannabis industry.