NEW YORK, July 14, 2014 /PRNewswire/ -- Cannabis Sativa, Inc. (OTCQB: CBDS) is a development stage company that hopes to capitalize on the legalization of marijuana. The company started business in April of 2013 through a reverse takeover. It acquired an exchange listed shell company and sold off the shell's assets as a way of side stepping the heavily regulated IPO process. CBDS's products include herbal skin care, formulas, edibles, topicals, delivery systems, and recipes related to cannabis. The feature products are cannabis lozenges, and its "Skin Garden" skin care line. The lozenges use a strain of cannabis called NZT, and they begin to act in 5-10 minutes. This is in contrast to other edibles that take up to an hour to act. CBDS has patents pending on powerful strains of cannabis to be used in products. The company has a great team in place albeit small, and the potential addressable market is large. There are many obstacles left for the company though before becoming a viable business. CBDS has patents pending, further legislation around marijuana legalization is up in the air, competition is stiff, and the right partners need to be found.
The U.S. market for legal marijuana is large and growing quickly. The market size is assessed at $1.53 billion for 2013, comprising all states that allow sale legally. The national market is projected to grow 68% from current levels to $2.57 billion by 2014. By 2018 the market will reach $10.2B. Currently 20 states and the District of Columbia allow the use of medical marijuana, but the illegal market is still much larger. It is hard to place exact figures on the size of the illegal market for marijuana but estimates range from $18 to $30 billion. The huge size of the illegal market leaves a lot of room for growth because that is market share that can be stolen. In addition the entire pie may grow. With the discovery of new uses and more potent strains of THC, the market as a whole may become larger. The growth in the space is definitely there, the question is can the company capture it.
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