While the legal status of cannabis companies may be in question, investors have more options to own a stake in these businesses.
Cannabis has strong growth prospects. Legal marijuana sales are projected to reach close to $22 billion by 2021 from nearly $7 billion last year, with a compound annual growth rate of 26 percent, according to Arcview Market Research, a San Francisco-based cannabis research firm.
In eight U.S. states, it is legal for adults to use marijuana recreationally and more than half of states have legalized it for medicinal purposes (see map below). GreenWave Advisors, another cannabis research firm, predicts that all 50 states could legalize weed within the next four years and the industry would be worth $30 billion.