The State's Strict Cannabis Testing Requirements Provide Unique Opportunity for Signal Bay EVIO Labs
SANTA MONICA, CA, Nov. 15, 2016 /PRNewswire/ - Signal Bay, Inc. (OTCBB:SGBY), a Life Sciences company focused on the exploding cannabis testing market, stands to benefit significantly from the recent legalization of marijuana after the industry-changing election on November 9.
While the Company is primarily focused on Oregon and California, where it operates a total of five cannabis testing EVIO Labs facilities (the Company plans to add 18 more of its EVIO Labs in California alone by end of 2018), Nevada's vote to legalize recreational marijuana provides an opportunity to capitalize on the state's exploding marijuana market as well as its particularly strict cannabis testing quality control requirements.
Las Vegas: The Amsterdam of the Desert?
In its recently published 2016 Nevada Legal Cannabis Market State Profile, New Frontier, the cannabis Big Data and analytics authority in partnership with Arcview Market Research, the leading publisher of cannabis market research, predicted explosive growth for the marijuana industry in tourist heavy Nevada.
Over the next four years, Arcview Market Research's official market projection is that annual legal cannabis sales will grow at a compound annual growth rate of 51%; from $121.6 million in 2016 to an estimated $630 million by 2020.
New Frontier founder and CEO, Giadha DeCarcer commented: "… Nevada legalizes adult use cannabis, we will witness an unprecedented socio-economic impact in a state already shaped and fueled by tourism and entertainment. The scale of the impact is expected to be massive – by 2020, adult use markets are projected to add an additional $484.3 million in annual sales, and Las Vegas account for almost three quarters of the total legal cannabis market in Nevada."
The Arcview Group CEO, Troy Dayton also commented: "2016 is poised to be the tipping point for the cannabis industry. Nevada is just the beginning of significant opportunities for investors and entrepreneurs that lay ahead in the sector, especially given its top tourist destination rank."
The state's ballot initiative will regulate marijuana like alcohol. Currently, Nevada is one of the few states that offer "reciprocity", where out-of-state medical marijuana patients can use their medical marijuana card at Nevada dispensaries.
Nevada hosted over 55 million tourists in 2015; that equals125,000 people per day 365 days a year, and there are no signs the state will not continue to be one of the leading destinations in the world for years to come.
Nevada Takes Cannabis Testing Seriously
As cannabis transitions from a formerly illicit substance to a regular consumer product, testing for safety and purity of cannabis is one of the most exciting subsets of the marijuana market boom. In fact, the market for cannabis testing is expected to grow to $850 million by 2020. As marijuana becomes legal, states are looking to enact increasingly strict quality control testing requirements. On this front, Nevada leads the way.
"States that have opted for the legalization of cannabis are looking to the mandatory testing requirements enacted in Nevada," commented William Waldrop, CEO of Signal Bay.
The laws are strict, so strict that Nevada's first dispensary was temporary shut down because it did not meet the new testing requirements at a local cannabis testing laboratory.
"At Signal Bay, we benefit from these two major trends occurring simultaneously in the cannabis industry. The first is massive expansion of the cannabis market generally, the second is the increasing need and desire to regulate cannabis use effectively through the enactment of strict cannabis testing requirements." Signal Bay is currently seeking acquire its first cannabis testing laboratory in Nevada.
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