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OPTO Sessions Alan Brochstein on investing in legal cannabis

Alan Brochstein is the founding partner of New Cannabis Ventures, a leading provider of information relevant to the cannabis industry created in 2015.

As a leading financial analyst within the world of cannabis for nearly a decade, Brochstein has become a highly regarded expert in the burgeoning space. Brochstein spent decades in the investment industry as a portfolio manager before changing his focus to the cannabis industry.

 

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In this episode of Opto Sessions, Brochstein looks to answer one of the burning questions in the mind of investors interested in the space: exactly, how much potential is there in the cannabis industry?

“The good news is that you can just start with the realisation that there’s a massive illegal market or illicit market. Cannabis is already a very widely consumed product around the world,” Brochstein explains.

“The good news is that you can just start with the realisation that there’s a massive illegal market or illicit market. Cannabis is already a very widely consumed product around the world”

 

Brochstein notes that hundreds of billions of dollars each year are spent on cannabis, but that the legal market is a very small part of that.

Therein lies its potential Brochstein says. The opportunity comes from being able to take all those people that are buying or using an unregulated product, and then being able to provide something that is, in theory, safer and more convenient.

“But that’s only the beginning because there’s really the whole idea of being able to create new products within a legal framework,” Brochstein continues.

“In the illicit market, there’s really not a big advantage to doing R&D. You can’t really get patents, you can’t really advertise what you’re doing. But in the legal market, you have the potential to create new products, especially pharmaceutical products,” Brochstein says.

“In the illicit market, there’s really not a big advantage to doing R&D. You can’t really get patents, you can’t really advertise what you’re doing. But in the legal market, you have the potential to create new products, especially pharmaceutical products”

 

He explains that there is a huge market for products such as over-the-counter prescription cannabis medicines, which are already emerging. He also points to companies working with CBD within their products.

“Then there’s a whole new category or two between health and wellness and pharmaceuticals — they can make the market even bigger,” Brochstein considers.

 

To hear more from Brochstein, including some misconceptions surrounding commonly held cannabis stocks, listen to the full episode on Opto Sessions.

 

 

 

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Listen to the full interview and explore our past episodes on Opto Sessions.

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