NEW YORK, January 3, 2018 /PRNewswire/ --
According to a report by New Frontier Data, the legal cannabis market was worth $6.6 billion in 2016 and is forecast to grow to $24.1 billion by 2025 with a compound annual growth rate of 16 percent. The medical cannabis market was worth $4.7 billion in 2016 and is expected to grow to $13.3 billion by 2025. Sales of products for reactional use during the same period are projected to grow at a 21 percent CAGR, from $1.9 billion to $10.9 billion. Now, that California's new recreational cannabis laws went into effect on January 1st, 2018, growth of the legal cannabis industry will reaccelerate. California is the largest market for legal cannabis, and as the most populous state in the country it will play a major role in the future of the industry. FinCanna Capital Corp. (CSE: CALI), Emerald Health Therapeutics, Inc. (OTC: EMHTF), Namaste Technologies Inc. (OTC: NXTTF), iAnthus Capital Holdings, Inc. (OTC: ITHUF), Lifestyle Delivery System Inc. (OTC: LDSYF)
Arcview Market Research Arcview editor-in-chief, Tom Adams, explained, "Our data shows positive indicators across the board for the legal cannabis industry, in North America and around the globe… That's nothing compared to what we can expect in 2018 and beyond from Nevada's tourism, and California and Canada planning to launch adult-use sales in 2018." Focusing on the value of the industry in California, a report by Fortune indicates that, "in order to collect $1 billion a year in taxes, the state will need to reach a projected $7 billion in annual legal recreational cannabis sales."
FinCanna Capital Corp. (CSE: CALI) listed on the Canadian Securities Exchange under the trading symbol "CALI". On January 2nd the company announced, "that as of January 1, 2018, under the Medical and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA"), cannabis in California will be regulated by various state agencies.
Following Proposition 215 which allowed a system for legal medical cannabis under what is commonly referred to as "collective law" - under MAUCRSA, a full framework of state licensure now exists which includes taxation and comprehensive regulations for cultivation, manufacturing, distribution, testing, and retail. The state of California reports that revenue from taxation will be allocated to research, treatment, enforcement, amongst other initiatives .
New state licensing and regulations legitimize the billion-dollar cannabis industry in California. FinCanna believes top-tier Companies with state licenses are positioned to prosper and represent royalty investment opportunities in which the Company is targeting. The regulations are expected to change existing supply/demand dynamics and generate significant tax revenue for the state of California, the single largest medical cannabis market in the United States. To operate legally in California after January 1, 2018, every stage of the supply chain in California must be state-licensed therefore certain amounts of existing production will no longer be legally eligible for retail sale in California.
Andriyko Herchak, President and CEO of FinCanna states, "We are in strong support of these new laws which provide a clear regulatory framework, allowing companies to operate ethically and legally in the state of California."
New state laws will also require stringent product management standards for the cannabis industry systems to establish industry standards regarding testing, packaging and labeling. Regulations also require a fully transparent seed-to-sale tracking system through the newly created State Regulatory Agency - CalCannabis Cultivation Licensing within the California Department of Food and Agriculture (CDFA). Implementation of this "track and trace" system are designed to ensure accountability for all stakeholders helping eliminate non-compliant products being sold.
FinCanna supports these new measures in California and stands behind this clearer, more regulated market as set out by the Bureau of Cannabis Control, the Manufactured Cannabis Safety Branch in the Department of Public Health and the CalCannabis Cultivation Licensing division, all as set out under MAUCRSA."
Emerald Health Therapeutics, Inc. (OTCQX: EMHTF) operates through Emerald Health Botanicals Inc., a wholly owned subsidiary and Licensed Producer under Canada's Access to Cannabis for Medical Purposes Regulations. On December 15, 2017, the company's subsidiary Northern Vine Labs announced that Health Canada has approved an amendment to the Company's dealer's license. The license amendment provides the Company the ability to transport, deliver and sell product to other Licensed Dealers, authorized persons under the Controlled Drug and Substance Act, and Licensed Producers. Along with the Company's already authorized activities for analytical testing, extraction, and import/export, this amendment also allows Northern Vine Labs to broaden its business opportunities through the production and sale of downstream cannabis products.
Namaste Technologies Inc. (OTCQB: NXTTF) is an emerging leader in vaporizer and accessories space. On December 27, 2017, the company announced that it has signed a Letter of Intent ("LOI") with BRLEV AGRICULTURAL CROPS LTD. ("BRLEV"), through its wholly owned subsidiary, Cannmart Inc. ("CannMart"), whereby BRLEV will supply CannMart with high quality medical cannabis, to be imported by CannMart from Israel and offered in the Company's online marketplace. BRLEV is Israel's largest licensed producer of medical cannabis, with over 40 years of experience in commercial agricultural production and export. BRLEV will work with Namaste to export medical cannabis to the Canadian market, which will fall under Canada's Access to Cannabis for Medical Purposes Regulations ("ACMPR") guidelines. The LOI and the proposed medical cannabis supply agreement highlight Namaste's intentions of becoming Canada's leading online retailer for medical cannabis products, by focusing on importation of high quality medical cannabis from industry-leading countries like Israel.
iAnthus Capital Holdings, Inc. (OTCQB: ITHUF) provides investors diversified exposure to best-in-class licensed cannabis cultivators, processors and dispensaries throughout the United States. Recently, the company announced that Mayflower Medicinals, Inc. received its final certificate of registration and certificate of occupancy from Massachusetts regulators and local officials on December 28, 2017 to begin cannabis cultivation and production operations at its facility in Holliston, Massachusetts. Mayflower is a non-profit Massachusetts corporation that has received two provisional licenses to operate Registered Marijuana Dispensaries in Massachusetts, with a third RMD application pending before the Massachusetts Department of Public Health.
Lifestyle Delivery System Inc. (OTCQB: LDSYF) is a licensed, state-compliant vertically integrated cannabis related company. On December 22, 2017, the company announced that on December 21, 2017, the Manufactured Cannabis Safety Branch of the California Department of Public Health has issued CSPA Group, Inc. a Temporary Category M Type 7 Manufacturing with Volatile Solvents License which will be effective January 1, 2018 through April 30, 2018. During this time, the California Department of Public Health will review CSPA's application and corresponding municipal permits and documentation for a permanent license.
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