Brink's CEO Tells Cramer Cannabis Industry Represents A 'Beautiful Opportunity'

Jayson Derrick - finance.yahoo.com Posted 4 years ago

The cannabis industry represents such a "beautiful opportunity" that even global securities services company Brink's Company (NYSE: BCO) wants a bigger share of the market, CEO Douglas Pertz told CNBC's Jim Cramer during his "Mad Money" show.

What Happened

Brink's, perhaps best known for operating a fleet of armored trucks to transport cash for clients, entered the cannabis space in late 2018 by providing services to Canadian-based Canopy Growth Corp (NYSE: CGC). The company is taking an even bigger look at a global industry that could be worth $160 billion, Pertz told Cramer Monday.

Need more cannabis news? Check out all of our coverage here.

Why It's Important

The cannabis industry was born out of an illicit trade, and security companies like Brink's are needed for "safety and regulatory and other reasons," the CEO said.

Legal cannabis activity likely stands at just 10 percent of the entire market, which implies "a huge opportunity" to expand, he said. 

What's Next

Brink's doesn't offer its services to cannabis companies in the U.S., since it remains outlawed at the federal level.

Yet the industry is showing signs of opening up with the SAFE Banking Act that is being discussed in Congress.

The bill would allow federally chartered banks to take on cannabis companies as clients. This would benefit Brink's, as it would be able to "help serve" the industry, Pertz said. 

Related Links:

Ask Our Experts 6/2/2019: FDA Holds Public Hearing About CBD, What Happened?

The Week In Cannabis: Earnings Madness, Illinois Legalization, FDA Hearing, And More

Public domain photo via Wikimedia. 

See more from Benzinga

  • Wedbush: Buy SLM On Continued Weakness
  • Canaccord: DionyMed On Track For 'Strong' 2020
  • Waste Connections' Guidance Looks Increasingly 'Realistic,' Analyst Says In Downgrade

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.