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The medical and recreational marijuana growing and retail industry, which includes both employer and non-employer establishments, has flourished recently with revenues, profits, employment, wages and the number of businesses growing between 20% and 30% from 2016 through 2021, per IBISWorld.
Just last year, there has been an increase of 16 additional states, territories and the District of Columbia legalizing various areas of the cannabis industry.
cannabis industry hit a record of $24 billion in sales in 2021, with expected annual sales of $70 billion by 2026.
The licensing of commercial recreational marijuana growers in these states contributed to industry revenue growth of 40.8% in 2016, as new entrants flooded the market.
Senate and signed by President Biden, will remove marijuana from the list of Schedule I drugs as well as eliminate criminal penalties for growers, distributors and individuals who possess cannabis or cannabis-related products.
However, the federal government not getting involved in drafting and passing legislation is another favorable factor because it appears there has been a change in public opinion, which could ultimately result in a change in public policy.
Experts predict that as surrounding nations, notably, Canada and Mexico, legalize cannabis within their countries, the U.S.
As the cannabis industry has grown over the past several years, there has been an increased development of intellectual property assets by those involved in both the growing and retail sectors.
Many growing operations are aligned with or own an interest in a research facility where they develop various genetic strains and refine the product formulation.
Lastly, it is essential for cannabis entrepreneurs to understand their IP rights and the benefits they can provide as well as the potential problems that may occur when IP rights are ignored or overlooked.
According to industry data, 2022 is poised to see another year of significant growth in M&A activity.
According to all indications right now, the cannabis industry is poised for another banner year of M&A activity, and it is only April.
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