Kevin O’Leary of’Shark Tank’ Won’t Invest in Cannabis

Kevin O’Leary of’Shark Tank’ Won’t Invest Cannabis

Ever since Canada legalized recreational marijuana earlier this month, a lot of attention has been focused on the financial potential of their new industry.

Most recently, this was the subject of debate on Yahoo Finance Market Movers. On the show, Kevin O’Leary, well-known investor and co-host of the TV show “Shark Tank,” said he would never invest in cannabis–at least not right now.

“Mr. Wonderful” Says No To Cannabis Purchasing

The interview with O’Leary was concentrated on Canada’s recent cannabis legalization. In particular, the conversation was based on what the consequences of legalization might be for investors.

Most pointedly, O’Leary was asked if he would invest in Canada’s legal bud industry. His answer was equally pointed:

Never,” he said.

When pressed for more explanation, O’Leary focused mostly on the legal status of cannabis in america. Although weed is now legal in Canada, it’s illegal in the U.S. And this is a big concern for O’Leary.

“you must consider it long term,” he said. “As an institutional investor, I will ’t touch this space. And I don’t because it’s a Schedule I narcotic. Even cocaine is not a Schedule I narcotic. ”

He added: “When you invest in a Schedule I narcotic, you’re at risk to breach the RICO statutes of aiding and abetting the transfer of a Schedule I narcotic across state lines. ”

Simply put, bud remains too risky for O’Leary. But this might not be the complete picture. From the sounds of things, there could be certain situations where he might be more open to investing in the space. Not surprisingly, it all has to do with weed’s legal standing.

In actuality, O’Leary offered some general advice for what he thinks the legal bud industry should do to invite more investment. In particular, he said the business should concentrate on CBD.

More specifically, O’Leary advocated for a distinct split between medical and recreational weed. In his vision, the medical industry should be focused on CBD. And it should have nothing to do with recreational marijuana.

On the other hand, the recreational industry could do what it wanted with THC and with the psychotropic facets of cannabis.

O’Leary reported that there is a whole lot of interest in utilizing CBD as a medical product. He explained it’s a massive market, maybe 10 times bigger than the recreational market.

But, he contended, the recreational, THC side of things ends of getting in the way. In actuality, he went so far as to call anything besides medical CBD “just sound. ”

Cannabis Could Be Attractive for Certain Investors

It could be important to note that ’Leary’s comments were coming from the specific perspective of an “institutional investor. ” He himself always stressed that.

And while O’Leary didn’t comment on how cannabis might affect other types of investors, it appears that there could be more opportunities for different kinds of investors.

In actuality, the Canadian cannabis industry has been seeing some explosive growth recently by shareholders. Most notably, Tilray shares recently jumped by 500 percent. Likewise stocks in Canopy Growth Corporation have increased in value by more than 95 percent this year.

Released at Fri, 26 October 2018 18:03:17 +0000

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