On Friday, Chris wrote about Lifestyle Delivery System’s (LDS.C) facility being raided by the local sherriff. In response LDS released a statement explaining their facility did in fact have a license and was fully supported by the local city and chamber of commerce, titans of industry, your aunt Marge, etc.

It seems law enforcement is out of touch with the city administration. The mayor of Adelanto, where the facility is located is super pumped to have a new high-tech employer looking to expand locally.  The cops heard OMG WEEDZ, visions of improved funding dancing in their heads.

The CEO of Lifestyle, Brad Eckenweiler says:

“I would like to thank the overwhelming support from the cannabis industry, the City of Adelanto and Mayor Kerr. Simply put, we believe that CSPA Group Inc. acted within the parameters of its permits and licences.”

Translation – we’re trying here, someone cut us a break.

Truthfully, the most surprising element of all this is that we’re surprised at all. Legal marijuana, especially in the U.S. is in a massive grey area full of conflicting regulation, federal-state-local strife etc.

Investors in the cannabis market right now need to accept the risks. Part of this business is the same risks as investing in distilleries at the end of prohibition. Until the laws are all changed, your investments could be impacted by forces beyond their control.

Canadian based companies have less of a risk if their assets are here, but even so with a patchwork of provincial regulations, federal guidelines and changing political winds – the entire market could still experience big changes, potentially rewriting the landscape.

LDS is doing exactly what it should, picking itself up, and carrying on. In their release they state they do not intend to interrupt the work on their California facility.

LDS’ project is going to be a potential game-changer. Their cannastrips have the potential to reach market niches who would avoid traditional products such as oils or smokeables.  The technical challenges involved in recreating their tech means they continue to have an advantage in this area.

But even so, until the U.S. federal government, state and local governments all get on the same page, these sorts of bumps in the road are going to be part and parcel of the cannabis investment game. It’s only time to get worried when the company you invested in gets raided by the IRS or SEC… (Angels and Ministers of Capitalism protect us).

Full Disclosure: Lifestyles Delivery System is an Equity Guru client, and some of us own stock (not me.)

Written By:

Stephan Herman

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