By Matt McCallMay 07, 2019
Some people don’t quite believe me when I tell them it’s coming.
I get it. Marijuana has been illegal in the United States for more than 80 years. Even with the writing on the wall, established attitudes are slow to change.
But yesterday I shared with you my biggest marijuana prediction yet: President Donald Trump is going to nationalize marijuana on the federal level.
I don’t make that prediction lightly. I am as serious as can be when it comes to massive investment themes set to make us a lot of money for years to come.
So today I want to tell you some of the reasons why I’m making such a bold statement.
As you know, marijuana is still prohibited federally, but 33 states now allow medical marijuana. Ten have even legalized recreational marijuana. All the while, the government has basically turned a blind eye and said it’s not worth their time or money to enforce the national law. It’s sort of like speed limits on the highways but with no radar traps along the way.
On the one hand, marijuana legalization has already been spreading across the country at a blistering pace…
On the other hand, the fact that marijuana is technically illegal is still the major roadblock keeping the industry from reaching maximum potential.
But… all that may change soon.
I told you yesterday that legalization will be a huge, game-changing development with enormous implications for us as marijuana investors. Today, I want to tell you what I’ve learned recently and why it tells us that legalization could be right around the corner.
Let’s start with recently “leaked” information by a former Republican congressman that the Trump administration could be gearing up to end the federal prohibition on marijuana.
Dana Rohrabacher, who in January ended 20 years of service in the House of Representatives, “spilled the beans” during a recent FOX interview by saying, “I have been talking to people inside the White House who know… and inside the president’s entourage. I have talked to them at length.”
He even gave a specific time frame as to when Trump will announce a plan for legalizing marijuana nationally, stating, “It could be as early as spring of 2019…”
He’s not alone. Current Representative Matt Gaetz (R-FL) added, “If we were any more favorable [for the national legalization of marijuana], we might have to start our meetings with the Grateful Dead.” Gotta love the sense of humor, right?
House Judiciary Chairman Jerry Nadler confirmed this sentiment, adding that nationally legalized marijuana could be expected “fairly soon.”
In fact, presidential candidate Cory Booker (D-NJ) along with six other Senators back the Marijuana Justice Act, which would decriminalize marijuana nationally.
One of the most important developments in the history of the U.S. marijuana industry hit the headlines just before the Easter holiday. Canopy Growth (CGC) announced that it was buying a U.S.-based marijuana company called Acreage Holdings (ACRGF) for about $3.4 billion, which was 42% over the company’s average value the prior four weeks.
Knowing both companies well and following the industry for so long, I knew immediately that the deal would only make sense if marijuana were legal in the U.S. If Canopy buys Acreage while marijuana is illegal, the world’s largest pot stock would have to delist from both the New York Stock Exchange (NYSE) and the Toronto Stock Exchange.
No way that’s happening.
Canopy must know something, I thought – that U.S. legalization must be a near certainty.
I looked into the deal further, and it became clear that Canopy does indeed have unique insight into the future. As I wrote in MoneyWire a couple of weeks ago, Acreage’s Board of Directors includes three of the most important people on the planet: former U.S. Speaker of the House John Boehner, former Massachusetts governor and current presidential candidate William Weld, and former Prime Minister of Canada Brian Mulroney.
The knowledge and connections of those three men are unparalleled. Canopy’s due diligence had to be extensive, and the evidence must have been compelling for the company to determine it was time to plant its flag in the U.S.
Management was smart enough to structure the deal so that the acquisition will officially take place when marijuana becomes legal in the U.S. Still, Canopy would not have agreed to the deal now if it knew the ending of this story was uncertain and still years away.
These recent insider comments and the Canopy-Acreage deal are important signals. Investors who don’t know the industry won’t understand their importance, especially the Canopy-Acreage deal. They’ll just see it as another of the increasing number of marijuana headlines in the news.
Smart and plugged-in investors know it means more than that. It means they need to get in now to capitalize on this historic and massive opportunity.
As they say on the late night infomercials, “But wait. There’s more!”
Tomorrow, I’ll fill you in on additional catalysts that confirm now is the time to invest.
Just like what recently happened in Canada, I fully expect early investors to amass a quick fortune as pot goes 100% mainstream. After all, the United States will instantly become the world’s biggest marijuana market the moment it happens.
P.S. I want you to see for yourself what is truly at stake for investors who get in BEFORE America legalizes nationally.
I don’t think it’s a stretch to assume that this next wave of marijuana wealth could be explosive.
I can’t overstate the importance of investing now… before the announcement of the national legalization of marijuana.
Marijuana’s next wave of wealth is approaching much quicker than you think. We’re talking about it all week here in MoneyWire. And if you want more information now, please click here for my latest presentation.
Note: This is Part 2 of a series on the opportunity presented by the upcoming legalization of marijuana in the United States. Click here to read Part 3 now.
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