The Washington State Liquor and Cannabis Board announced that it would implement a rule allowing United States investors to finance the state’s legal marijuana industry. Colorado initially opposed the idea and the state made it mandatory for investors to establish a two-year residency before financing cannabis operations but Oregon’s approval foreshadows the likelihood of Colorado following suit. There are risks that come with inflows of various financing campaigns but the marijuana industry is moving towards out-of-state finance opportunities with eyes on California who may enter the competition if citizens legalize recreational pot sales in the following months. Washington is going to adopt the policy by June and this will eliminate the six-month residency requirement for US investors.
The shift for marijuana reform is pointed towards legalization and there has not been a lot of backlash or opposition against the proposals to drop residency requirements. Right now investors from out of state cannot own shares of the company but this may change with a new bill that will allow investors to own up to 49% of the firm. More investors mean more tax revenue flowing into our states and as the marijuana industry is decriminalized there will be less customers going to the black market which will lower illicit activity largely. The recreational marijuana industry is in its infancy but the growth opportunities are immense and investors are finding it safer than ever to finance marijuana operations.