Why Cannabis Is Recession-Resistant & Turning Challenges Into Opportunities, Industry Expert Explains

It is safe to say that the cannabis industry would not have progressed as much as it has if it were not for the people who believed in it. Cannabis advocates, lobbyists, growers, operators, consumers and researchers have consistently played a crucial role in the space. Nevertheless, without capital, the industry wouldn’t have advanced to where it is today.

One of the people who was bold enough to jump in and support the industry from the very beginning when skepticism and stigma surrounded the space, was Emily Paxhia. Along with her brother Morgan Paxhia, she launched the longest-running, cannabis investment fund, Poseidon Investment Management. They believed so fervently in the power of the plant and the industry’s potential that they invested everything they had to get the company up and running.

In 2013, Paxhia was having a hard time finding service providers, from banks to lawyers and administrators. The biggest challenge was raising money for the fund. A decade later, Poseidon has three running funds that are closed to new investors, and their New York Stock Exchange traded ETF - AdvisorShares Poseidon Dynamic Cannabis ETF PSDN.

Paxhia is bringing her vast industry expertise to the Benzinga Cannabis Capital Conference as a featured speaker this coming April in Miami Beach.

First To Recognize Some Of The Biggest Weed Players

Poseidon was among the first to recognize the potential and invest in some of the now largest companies in the space. Have a look. Marijuana operator Aphira, which was acquired by Tilray Brands TLRY; cannabinoid drug company GW Pharmaceuticals, which produced Epidiolex, the only FDA‑approved prescription CBD treatment for epileptic seizures. GW Pharma was acquired by Jazz Pharmaceuticals JAZZ in 2021. Then there's Headset, FlowHub, Ascend Wellness Holdings AAWH, FlowCanna and Pax to name a few of the key players. 

“I believe those of us who have invested our time, capital and reputation in growing this sector have contributed to what will be a lasting and remarkable industry. From 2013 to where we stand today, cannabis now has an economic impact of note, growing from $91B in 2021 to likely over $100B in 2022. It is the work of companies like ours that has brought capital to the sector, attracted talent, changed laws, created social justice initiatives," Paxhia told Green Market Report.

“I’m not sure I would find the same passion or drive in almost any other space. My favorite hashtag aptly sums it up #cannabisbroughtmehere and there is nowhere I would rather be.”

Challenges Or Opportunities For Recession-Resistant Product?

When the COVID pandemic hit nearly three years ago and imposed challenges on virtually every industry there is, Paxhia saw these obstacles as opportunities. She shared the fact that cannabis was in its 25th month of a bear market before it was impacted by the crisis in the U.S. One of the first effects on the industry was a supply chain disruption in China, which also had a positive side.

“That created a lot of challenges from the supply chain, but it also created opportunities for other companies that do their packaging through other countries to step in and to create a name for themselves," Paxhia told Benzinga.

Cannabis is a recession-resistant product, says Paxhia. In that weed is “a very complimentary product," that goes well with all kinds of activities, like movies, reading, eating, relaxing and wellness, Paxhia pointed out.

Hence, she says, it will “continue to be a part of the consumers’ wallet or their spending decisions, even if we do move into a recession.”

Come and meet Emily Paxhia and many others who are making positive and essential changes in the cannabis industry at the Benzinga Cannabis Capital Conference on April 12-12. Stay with us at Miami Beach’s historic Fontainebleau Hotel. Don't miss out on a chance to hear about future market forecasts and business advice on investing and finance from those in the burgeoning cannabis industry. Get your tickets HERE before prices go up. Book your room HERE.

Photo: Courtesy of Poseidon