Something big is coming in the cannabis industry’s way soon in Canada. Some of the Canadian banks like Bank of America, Merrill Lynch, and Goldman Sachs are officially trying their hands in the Cannabis Industry, reported by Canadian media.
Apart from investing a lump sum amount in the marijuana industry, the banks are observing steady potential in the near future. Although the Federal Law is yet to declare the industry as legal in many parts of the United States, the Canadian industrialists are hopeful and willing to invest more in upcoming projects as well.
Following the recent reports, New York-based Constellation Brands are spending 5 billion Canadian Dollars on Canopy Growth of Smith Falls, Ontario. Bank of America and Merrill Lynch are financing the amount for this project. With the full support of Goldman, the financial activities will take place.
A number of huge companies came forward to support the cannabis industry in many possible ways in Canada. However, with Federal Law continue to call it illegal, the industry is staggering in its growth rate. The deal, Wall Street is heading up to, is definitely much larger than ever for the cannabis industry. This leads to hope for many people, especially the medical industries, dispensaries, merchant banks and so on to deal freely in marijuana industries.
The Canadian government has made cannabis legalized in the year 2001, but there are no proper marijuana banking solutions. Now with the intervention of American Banks in financial activities, the industry may grow faster than before. On the other, private merchant companies, who work relentlessly to provide merchant services for cannabis businesses can put their minds at ease.
The United States is currently witnessing a huge increase in cannabis merchant service provider industry. They leave no stone unturned to provide all sorts of banking services to the people engaged in the marijuana business. Mainly, the merchant accounts are for the medical industries. Specifically, the debit and credit card facilities, gift card facilities and other services are being provided to the people working in dispensaries and general stores to collect money from their customers as it involves huge cash dealing.
CEO of New York-based company acreage Holdings has quoted that if Federal law continues to calling marijuana illegal, the market in America will lag behind compared to other countries. This should not happen as America’s biggest investment banks are entering into the cannabis industry now. Also, many have stated that Wall Street has the potential to increase investment money out of these deals and the cannabis industry.