Green rush

According to Maximum Yield:[5]

‘Green Rush′ is a term used to describe the burgeoning marijuana industry within the United States as well as Canada. This applies to the growth and spread of dispensaries, the growing sales of smoking accessories, and things outside the world of cannabis culture, like marijuana related stocks and bonds, as well as trade shows and business convergences.

The term green rush is a nod to the North American Gold Rush of the 1800s and mainly alludes to the money-making potential of this growing industry. The green rush is having a major impact on the economies of states where marijuana has been legalized. It is only a matter of time before all states benefit from the rush."[5]

The "green rush" can also be used to characterize the movement of capital and people into territories and markets that have legalized cannabis.[6][7] [8][9]

The economic viability of the cannabis marketplace began to erode in the United States in 1937 when the Marihuana Tax Act was passed,[10] prohibiting the production of cannabis in addition to hemp. Later the United Nations conventions on drug control include the Single Convention on Narcotic Drugs of 1961, effectively ended the legal international trade in medicinal and recreational cannabis. These reforms were largely manifested by public fear campaigns that included the public exhibitions of films such as Reefer Madness (1936) that were supported by Federal Bureau of Narcotics commissioner Harry J. Anslinger and his contemporaries.[11]

It was not until the early 1990s that events such as Seattle Hempfest began public education campaigns to reverse the public perception about the restoration and viability of a medicinal and recreational marijuana marketplace.[12]. Activist efforts such as these have spearheaded the green rush which has contributed to the legalization of cannabis in five countries;[13] led to the legalization of cannabis for recreational production, sale and consumption in 11 American states; and has also inspired medicinal cannabis exchanges in 33 U.S. states as of January 2020.[14]

These reforms have created substantial economic activity not only related to growing and selling cannabis, but have facilitated the lesser known ancillary market in the cannabis industry that provides opportunity in other sectors such as packaging, marketing, software, media, finance, and real estate.[15][7]

In most U.S. & Canadian jurisdictions cannabis business owners are required to have a license to legally produce, modify, transport, and/or sell cannabis products. The same has held true of Uruguay's emerging market.[16] These licensing systems are regulatory in nature, designed to assure quality standards to protect consumers, and assure that proper taxes are collected from the business entity. The licensing system is also designed to protect society from illicit acts such as selling cannabis to minors and money laundering.[17]. In the United States state licensing schemes are modeled under DOJ guidance issued under the Cole Memorandum issued during the Obama administration. Following suit Canada has implemented similar rules. [18]

Most jurisdictions have requirements termed "green-zones" which require that cannabis business operate a certain distance from schools, churches, and other family facilities.[19] Because of these restrictions this makes green-zone real estate both highly valuable and highly sought after; In many jurisdictions an application for a license must include some kind of link to properly zoned real estate.[20][18]

Upon voter sanctioned legalization each jurisdiction has implemented its own unique systems for applicants seeking to open licensed cannabis businesses. The first two examples were Washington State and Colorado. In Washington 1175 applicants applied for licenses with 334 qualified applicants being selected in a lottery.[21]. Colorado opted to issue 348 licenses to existing medical marijuana businesses in good standing.[22] These initial systems left many potentially qualified applicants without a means to obtain a license. [20]

Marijuana stocks become popular following the first phases of legalization in the United States, many initial cannabis offerings were traded on the OTC market as early as 2012 and have subsequently failed. [23]. In 2016 both Canadian and U.S. based stocks began trading on the Toronto Stock Exchange. In many cases these stocks have fallen in price over 80 percent amidst massive lay offs and failure to meet investor expectations. [24]. The Global Cannabis Stock index, a measure of cannabis stock value, has fallen from a high of $180 USD in Jan 2017, to $18 as of March 2020.[25]

Since the inception of prohibition a black market for cannabis has existed. Estimates say the black market makes up 87 percent of all sales, netting over 40 billion dollars in the U.S. alone, according to a 2016 study. [28]. The black market has created additional issues for cannabis regulators and legal businesses owners alike. Black Market operators have been known to open illegal store fronts posing as legal operators to unwary consumers, an activity that for the moment has overwhelmed law enforcement's ability to regulate these illicit businesses. These operators also pose issues for legal operators as illegal dispensaries are able to offer consumers cannabis products at much cheaper prices than their regulated tax paying legal counter parts.[29]

• Decriminalization of non-medical cannabis in the United States

• "I-502 data"
• "Cole Memorandum"