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How to Legally Invest in Marijuana Companies

How to get rich off weed 1:48

Score one for the stoners: The pot industry is poised to be gigantic as more states embrace legalization. And, if you want to get in on the ground floor, several advocates say now is the right time to bet big on marijuana.

"Overall public opinion of marijuana has changed," said Dan Humiston, president of the International Cannabis Association. "The stance has just softened. With time as the population ages, a lot of the generations that were really opposed to it are being replaced with the generations that are comfortable with it."

The Wall Street Journal reports that the cannabis industry had a market capitalization of $3 billion as of April. There's currently more than 50 publicly traded pot-related companies. Twenty-four states have legalized medical marijuana, and recreational use for adults has been approved in Washington, Colorado, Alaska, Oregon and Washington, D.C.

Related: Marijuana Country: The Cannabis Boom

With more companies going public every day, the still illegal industry is growing rapidly. New Frontier Financials, a big data shop that focuses on the marijuana industry, estimates that the industry will reach $15.2 billion by 2020. At least seven states are expected to have marijuana legalization initiatives on their 2016 ballots.

Image: marijuana industry growing
In this photo taken on January 13, young plants stand under grow lamps at the Pioneer Production and Processing marijuana growing facility in Arlington, Washington. Washington’s second-in-the-nation legal marijuana market opened last summer to a dearth of weed. Elaine Thompson / AP

Humiston believes that as more states come on board, the hysteria that was overvaluing companies has died down, so prices are more realistic.

It also helps that the stigma of being in the weed business is quickly fading away thanks to celebrities like Tommy Chong creating their own weed brands and high profile investors like Peter Thiel, said media and public relations expert Cheryl Shuman. In January, the PayPal co-founder's Founders Fund took a minority stake in Seattle's Privateer Holdings. The company runs a medical marijuana growing operation in Canada and a pot review site called Leafly.com, among other marijuana-related businesses.

Related: Peter Thiel's fund buys into marijuana business

"Investors want to see if an influencer, a trendsetter, a cutting edge individual gets involved," explained Shuman—who calls herself the Martha Stewart of marijuana. "Now I'm getting 10 calls a week."

Read the full story at CNBC.com