NEW YORK, April 18, 2018 /PRNewswire/ --
CannabisNewsWire Editorial Coverage
Albert Einstein may have said it best: "In the middle of difficulty, lies opportunity." The changing landscape of the cannabis industry perfectly illustrates this quote, and who better to know it than the companies and individuals involved in this burgeoning business? Canadians are standing by while government leaders grapple with last-minute details of legalizing adult-use recreational cannabis nationwide, while Americans watch lawmakers debate and often reject legislation that would make some form of the highly regulated plant legal in more states. Companies poised to benefit from this "green rush" are providing services specifically tailored to this growing market that, from the outside, can appear chaotic. Among the companies responding to the call are Global Payout, Inc. (OTC: GOHE) (GOHE profile), Terra Tech Corporation (OTC: TRTC), GB Sciences Inc. (OTC: GBLX), Lexaria Bioscience Corp. (CSE: LXX) (OTC: LXRP) and Medical Marijuana Inc. (OTC: MJNA).
One of the most significant issues facing recreational and medical cannabis businesses is finding ready and willing financial institutions to handle the enormous amounts of cash the industry generates. U.S. federal banking institutions are hesitant to get involved, since cannabis remains illegal under federal law. Canadian banks are keeping an eye on the industry while waiting for legalization to take hold in Canada later this year. Even those institutions willing to serve the industry are having second thoughts. Just last month, the Bank of Springfield in Illinois told its cannabis clients it would close their accounts (http://nnw.fm/mTF2A). The decision to withdraw is tied to the January reversal of a policy from President Barack Obama's administration that discouraged the prosecution of operators under state marijuana laws.
"The bank's stance is that protecting their customers is paramount," said Andrew Mack, a spokesman for the bank. "The Bank of Springfield will not jeopardize any of their customers by working with businesses that operate in the legal gray zone."
Alternative Fintech Options
Global Payout, Inc. (OTC: GOHE) and its San Diego-based partner, MoneyTrac Technology ("MTRAC"), offer alternative fintech banking solutions to high-risk industries in the United States, Canada and Mexico. Through customized payment solutions, companies can process and manage electronic payments worldwide. MTRAC recently launched its new "Key to Cashless™" payment option powered by GreenBox blockchain technology (http://cnw.fm/T8hkZ) by placing a demo kiosk in the company's corporate sales office.
Vanessa Luna, MTRAC CEO, said the company has worked on the project for over a year and a half and is now accepting applications from qualified merchants operating within a variety of "alternative" and "high-cost" industries interested in the system.
"We are extremely excited to be getting this payment platform off the ground, and we plan to pay special attention to marketing and recruiting local governments and municipalities to adopt the technology as a means for both regulating legal cannabis sales and tracking it for tax purposes," Luna said. "The power of this payment system cannot be overstated; it is a one-of-a-kind service offering that no other company can match, offering cashless transactions, inventory tracking, fully integrated point-of-sale and one-click payroll capabilities and is very much the solution the cannabis industry has been waiting for."
A Growing Marketplace
Grand View Research reports that the global medical cannabis market is projected to reach a value of $55.8 billion by 2025 (http://nnw.fm/7KAbv) while retail sales of legal cannabis products in North America alone are expected to fetch $24.5 billion by 2021, according to an article in Fortune magazine. California's medical marijuana market is already as big as the total markets in Colorado, Washington and Oregon combined, the article states (http://nnw.fm/bFve6).
Ancillary businesses that support the cannabis industry are growing fast, as well, said Mitchell Kulick, partner at Feuerstein Kulick LLP, a cannabis law firm that provides legal services to companies, funds, investors and lenders in the space.
"The reality is that, despite being illegal on a federal level, medical and adult-use marijuana are by most measures real industries that cannot be ignored and that have the same needs as more mainstream business," said Kulick (http://nnw.fm/quIb2). "So, from payroll providers to point-of-sale software to compliance companies, law firms, accountants, and the list goes on, many businesses that are ancillary to the industry are now part of this revolution."
As part of that "revolution" the MTRAC Kiosk, powered by GreenBox's state-of-the-art closed loop blockchain technology, can be placed in any business that wishes to conduct cashless transactions. Customers either load currency onto an e-wallet or a pre-paid debit card and then use the digital currency or pre-loaded debit card to pay for purchases. Integrated Compliance Solutions ("ICS"), a leader in the Know Your Customer procedures as well as in legal compliance solutions for the cannabis industry, has committed to serving as the compliance arm of MTRAC and its GreenBox payment solution (http://nnw.fm/15Dhi).
"ICS has done an excellent job of making a name for themselves in terms of offering highly effective and much needed compliance for the cannabis industry," Luna said. "We believe they have the necessary technology, experience and connections to provide the best compliance our network of clients can benefit from."
Change of Heart
Former Republican speaker of the House John A. Boehner recently switched sides in the battle to decriminalize cannabis. Once "unalterably opposed" to rolling back federal regulations, Boehner has now joined a board of directors for a cannabis company and is voicing support for veterans to have legal access to medicinal cannabis, the Washington Post reports (http://nnw.fm/RE4zr). His change of heart and mind about cannabis is matched by many Americans who now overwhelmingly voice support for legalizing medical cannabis.
Paying for a cannabis prescription, however, remains a challenge since cash-in-hand is often the only method of payment available. Representatives from MTRAC are already in talks with several California municipalities to implement the company's payment system as the preferred method for licensed dispensaries in their jurisdictions. MTRAC's Kiosk offers one of the most effective cashless alternatives to these businesses in a way that meets compliance and regulatory requirements, the company said in a news release (http://cnw.fm/9U2gQ).
On the Bandwagon
GOHE and MTRAC aren't the only companies that have seen - and responded - to a need in the cannabis industry. Other companies are moving to the forefront as they provide services specifically geared for this blossoming market.
California-based Terra Tech Corporation (OTCQX: TRTC) is a vertically integrated, cannabis-focused agriculture company committed to providing the highest-quality medical cannabis and other agriculture products. Terra Tech, which just reported a 41 percent year-over-year revenue growth for 2017, has established extensive cultivation capabilities and retail outlets in California and Nevada.
"Cannabis analytics firm New Frontier projects Nevada's total cannabis market to be $622 million by 2020 and we are excited by the opportunity to participate in its growth," Terra Tech CEO Derek Peterson said in a news release (http://nnw.fm/XB1a1).
GB Sciences Inc. (OTCQB: GBLX) is a diverse cannabis company focused on standardized cultivation and production methods as well as biopharmaceutical research and development. The company's goal is creating safe, standardized, pharmaceutical-grade cannabinoid therapies that target a variety of medical conditions, including Parkinson's disease and neuropathy. GB Sciences recently received its license for cannabis oil production, which will soon begin at a Las Vegas facility, and expects retail sales revenues of its products to roll in during the second quarter of 2018, the company stated in a news release (http://nnw.fm/7CwKl).
Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) has developed and out-licenses its proprietary DehydraTECH™ technology for improved taste, rapidity and delivery of bioactive compounds including cannabinoids. The company's disruptive technology is proven to enhance the absorption of orally ingested cannabinoids while improving the taste, which allows for lower overall dosing with higher efficacy. Most recently, Lexaria received a new U.S. Patent Allowance for enhanced cannabinoid delivery using its DehydraTECH technology (http://nnw.fm/8muQe). Lexaria currently has 15 patent applications filed in the United States and over 30 pending in more than 40 countries, plus two patents granted for cannabinoid delivery in the United States and one granted in Australia.
Medical Marijuana, Inc. (OTC: MJNA), headquartered in California, is a cannabis and industrial hemp company whose subsidiaries and investment holdings are involved in the development, sale and distribution of hemp oil and other products containing CBD-rich hemp oil. The company's products are formulated for the pharmaceutical, nutraceutical and cosmeceutical industries, including dietary supplements. The company also sells its products in several countries that have legalized its products for the treatment of various illnesses and conditions. Medical Marijuana subsidiary HempMeds® announced at the Pittsburgh World Medical Cannabis Conference & Expo (http://nnw.fm/nk2Vr) that it has released a new roll-on, topical hemp product specifically targeting athletes and active adults.
Look Out, It's 2018
California's conversion to statewide recreational cannabis is already experiencing some missteps and growing pains. Canada's move to become the first Group of Seven nation to legalize adult-use marijuana is dominating international discussions while cannabis entrepreneurs scramble to capitalize on its legalization. Alcohol companies see opportunity amid the chaos, with some investing in cannabis firms or planning to introduce their own cannabis-infused products. Several companies serving the cannabis industry are looking at creating ways to avoid cash transactions through blockchain technology's promise of a tamper-proof form of digital bookkeeping through a distributed, encrypted ledger. The cannabis industry's growth presents challenges and opportunities on a variety of interesting and potentially very lucrative levels.
For more information on Global Payout, Inc., visit Global Payout, Inc. (OTC: GOHE).
CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today's market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.
DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with CNW or any company mentioned herein. The commentary, views and opinions expressed in this release by CNW are solely those of CNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW and FNM for any investment decisions by their readers or subscribers. CNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment.
CNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW and FNM undertake no obligation to update such statements.
CannabisNewsWire (CNW) & NetworkNewsWire (NNW) are proud to be affiliated partners of the Investor Brand Network (IBN)
Over the past 10+ years we have consistently introduced new network brands, each specifically designed to fulfil the unique needs of our growing client base and services. Today, we continue to expand our branded network of highly influential properties, leveraging the knowledge and energy of specialized teams of experts to serve our increasingly diversified list of clients.
Please feel free to visit the Investor Brand Network (IBN) http://www.InvestorBrandNetwork.com
Corporate Communications Contact:
FN Media Group, LLC