A June 3rd CNBC interview with Douglas Pertz, CEO of Brinks, the American private security and protection company that principally protects money provides cannabis investors with just such a perspective. Said Pertz to CNBC’s Jim Cramer:
“On a global basis I think cannabis is going to be a booming industry. It’s probably $160 billion on a global basis. I think the key piece there: There’s probably only about 10% of that that’s legal, but that means there’s a huge opportunity and demand out there.” [emphasis mine]
Brinks is already active servicing the Canadian cannabis industry, beginning with industry heavyweight Canopy Growth Corp. (NYSE: CGC, TSX: WEED) last November. But the security icon hasn’t yet become involved in the U.S. cannabis industry, despite the fact that medicinal use of cannabis has now been approved in 33 states, with recreational use now legalized in 10 states (plus Washington, D.C.).
Why not? The CNBC interview addressed that subject.
Brinks does not participate in the marijuana business in the United States, even where the drug has been legalized in different forms, Pertz told Cramer. He said it’s important that the industry is served “for safety and regulatory and other reasons,” while giving a stamp of approval to the SAFE Banking Act that’s making its way through Congress.
There are a few obvious take-aways here for investors.
- Yet another influential multinational corporation sees cannabis as a huge economic opportunity that is still in its infancy, and is actively positioning itself in the sector
- Passage of the SAFE Banking Act would have an immediate positive impact on the U.S. cannabis industry in a number of ways, bringing not only new dollars but also new resources and expertise to the industry