Earlier today, cannabis-focused security company, Blue Line Protection Group (OTC:BLPG) announced that their cash processing services division has had triple digit growth from October 2016 through January 2017. Not many companies (even in the rapidly growing cannabis industry) can say that they saw triple digit growth in one of their divisions. That being said, we thought we’d take a closer look at the security side of the cannabis industry and the players that are taking advantage of the massive growth potential in this niche market.
Because of the issues surrounding marijuana businesses and access to banking, cash is is truly king in the U.S. cannabis industry. When you have large quantities of cash, in order to use it, you’ve got to transport it. Now enter the private security and armored car companies.
Marijuana companies pay everything from rent to taxes in cash, and have to get this cash from their dispensaries, to a safe storage location (often quite literally a safe) and then back again just to pay their expenses. They use armored car services like MPS International. MPS International happens to be a subsidiary of Medical Marijuana, Inc. (OTC:MJNA)
Armored cars aren't just for cash, as long as marijuana businesses are around, they will need a secure way to move marijuana products. Both Blue Line and MPS International offer transportation solutions for marijuana business looking to move both cash and product.
Additionally, because they are such cash heavy businesses and because they have quite a bit of valuable product on the shelves or in their warehouses, marijuana companies rely on private security guards to protect their cash, product, employees and even customers. After the tragic shooting at a dispensary in Aurora, Colorado cannabis businesses are becoming even more careful about security.
On the recreational side, access to cannabis is age restricted, and underage sales can put a dispensary’s license at stake. Blue Line Protection Group (OTC:BLPG) sells ID scanners that help prevent the usage of fake IDs and other underage sales.
Visual and audio surveillance is also an important need of marijuana companies that is fulfilled by these security providers. To prevent diversion of product, most state cannabis regulations require growers, storage facilities, processors and dispensaries to have advanced video security systems.
Security is an especially big deal in the marijuana industry, and there are big profits to be made at the companies who provide it. Investors seeking to get exposure to this exciting subsector of cannabis should do additional research on both MPS International owner, Medical Marijuana, Inc. (OTC:MJNA) as a diversified play and Blue Line Protection Group (OTC:BLPG) as a more pure play in the space.
Stay tuned for more coverage of the cannabis security sub-industry from the Daily Marijuana Observer. If you haven’t already be sure to follow us on social media using the links below, and subscribe to our free email newsletter.
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