Legal Marijuana Business Finds Its Footing, Despite Challenges

Heightened competition in the market for legal recreational weed is pushing prices down and firing up border wars across state lines. Competition is so steep in Washington state that cannabis revenue growth has slowed as Oregon ramps up its adult pot sales.

What’s more, in Colorado and Oregon there’s more interest from out-of-state investors entering the recreational pot business.

Then there’s California, where voters will decide later this year whether to legalize recreational pot.

Yet, for all the interest, the marijuana business remains fraught with risks and capital challenges.

“Cannabis is still illegal on the federal level, so it makes investing very risky,” said Jessica Rabe, a research analyst with ConvergEx, a New York-based brokerage that released its outlook for the industry last week. Federal laws make it difficult for marijuana businesses to open bank accounts, and as a result many have gobs of cash

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