Marijuana investors are moving into Colorado, where it is legal at the state level. PHOTO: Reuters.
A marijuana business mogul is trying to grow profits in Colorado—where marijuana is legal at the state level—not by producing or selling cannabis himself, but by providing needed infrastructure for the marijuana business. The plan for ProMap Corp., soon to be Advanced Cannabis Solutions, is to buy buildings and land where marijuana is produced and sold, and then lease the property to people who want to grow and sell pot.
Why? Because marijuana, with its ambiguous legal status (legal statewide, illegal federally) is a risky business. While the federal government is taking a hands-off approach to legal marijuana states for now (Colorado and Washington, with other states considering taking the plunge), it’s always possible that the government will storm in and break up the party, if not now, then maybe in a few years. Investing in land and property on top of the costs of operating a business will be too much for some would-be marijuana entrepreneurs. Advanced Cannabis Solutions is looking to lower the bar for entering the marijuana business.
This is the free market at work. The legal marijuana market is fraught with peril, but by taking out a big chunk of the risk, Advanced Cannabis Solutions can facilitate what should be a very profitable business, and get a share of the profits. It is creativity like this that will make the marijuana business very hard to shut down once it begins in earnest.