Point Capital Inc. (OTC: PTCI), a business development company focused on financing public and private companies, recently announced the launch of Hemp Funding Inc. to invest in public and private companies that are positioned for growth in the legal cannabis industry. The move could provide investors with an all-in-one diversified play on the cannabis sector.

“We see significant growth for firms that support and operate in the cannabis industry,” said Point Capital Inc. CEO Richard Brand. “The legal environment is changing and we are excited about the new investment opportunities.”

The new subsidiary will invest in a combination of debt and equity deals that provide investors with “high total returns at an acceptable level of risk”. In particular, the subsidiary will focus on identifying companies with strong management teams and securing positions that present attractive growth opportunities in the emerging cannabis industry.

The U.S. cannabis industry grew 64% in 2013 and is expected to reach $2.34 billion in size by the end of 2014, according to ArcView Market Research. With additional states expected to legalize the drug over the next five years, the same group projects that the industry could balloon to $10.2 billion in size by 2018. These rapid growth rates have made the industry increasingly attractive to investors.

On the regulatory side of the cannabis industry, 21 U.S. states and Washington D.C. have legalized medical marijuana and two states have legalized recreational marijuana. Seven additional states have ballot measures or bills that signify they are in the process of legalizing the substance. Many experts believe these moves could put increasing pressure on the federal government for a comprehensive solution.

Shares of Point Capital Inc. were even in early trading on Wednesday morning.

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