When it comes to cannabis, we're a divided nation. With passing of legislation paving way for the plant's medicinal use, and a referendum for personal use on the horizon in 2020, political positioning is in full swing - and early investors are starting to make their first bets.
Emerging industries with the potential scale of the cannabis market provide significant opportunities for early investors, however, the chance to be at the forefront of a growing market comes with substantial risks.
Polling data over the last year suggests the public is split on legalising cannabis for recreational use. Initial polls hinted at a majority in favour, however, more recent polls suggest the majority will now vote against legalising cannabis for recreational use at the 2020 referendum. While legislation for medicinal cannabis is progressing, significant uncertainty remains on the recreational front. This is an important distinction to keep in mind when considering any financial investment in the emerging cannabis market.
Recent developments have seen a number of medicinal cannabis and therapeutics companies founded within the last few years, all looking to capitalise on the emerging industry. Founded in 2015, Hikurangi Group was one of the first companies in New Zealand to get underway. In 2017, a number of other companies entered, including Helius Therapeutics, Cannasouth, Nubu Pharmaceuticals and Setek.
More recently, there's been increasing interest from offshore players wanting to establish local partnerships or set up subsidiaries to compete directly. With tangible experience in markets where cannabis use is already legal, many international players have a head start on the local market.