U.S. Legal Cannabis Industry Expected to Contribute 414,000 Jobs by 2021
FinancialBuzz.com News Commentary
26 Sep, 2018, 09:00 ET
NEW YORK, September 26, 2018 /PRNewswire/ --
According to data compiled by Arcview Market Research, in partnership with BDS Analytics, the U.S. total economic output from the legal cannabis market will grow 150% from USD 16 Billion in 2017 to USD 40 Billion by 2021. The growth of the industry is attributable to the widespread legalization of recreational and medical usage. North American regions are projected to contribute to the majority of global legal cannabis sales. In 2017, North America dominated the medical cannabis market, reporting USD 5.7 Billion in sales, while recreational adult-use reported USD 2.5 Billion. By 2021, the adult-use segment is expected to take over as consumer spending is forecasted to hit USD 14.9 Billion, while the medical sector is expected to reach USD 7.7 Billion. FinCanna Capital Corp. (OTC: FNNZF), Invictus MD Strategies Corp. (OTC: IVITF), CannaRoyalty Corp. (OTC: CNNRF), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF), Leafbuyer Technologies, Inc. (OTC: LBUY)
Alongside economic growth, the industry will also witness employment and job growth during the forecast period. In the U.S., California is expected to create 99,000 new jobs in the industry, accounting for approximately a third of the country. By 2021, there will be a total of 414,000 FTEs among legalized states, led mainly by six states that had adopted legalization early on: California, Colorado, Massachusetts, Nevada, Oregon and Washington. "Across the country, Americans are worried about being able to find jobs and support their families," said Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics. "The numerous employment opportunities created by the cannabis industry, especially in states that are legalizing adult use, cross the spectrum from retail and service jobs to science, technology and other traditional professions. Voters have noticed, and now legislators are waking up to the opportunities."
FinCanna Capital Corp. (OTCQB: FNNZF) is also listed on the Canadian Securities Exchange under the trading symbol (CSE: CALI). Just earlier this morning the company announced breaking news that, "its investee company Refined Resin Technologies Inc. ("Refined Resin") of Oakland, California has received its first purchase order for THC distillate in the amount of US$840,000. Refined Resin is a cannabinoid research and refinery company that provides B2B products and services to licensed brands, dispensaries and distributors in the medical cannabis supply chain.
This purchase order was received from a high volume, top California cannabis brand that manufactures a diversified product line, which is distributed across the state. The purchase order of $840,000 is specified as a minimum annual amount with the expectation that monthly volumes and associated payments could escalate based on consistent delivery and performance.
Refined Resin continues to meet with suppliers, contractors and potential customers in support of its commercial launch expected in early 2019. The company anticipates that this will be the first of a series of purchase orders it will acquire based on advanced discussions in progress with a number of interested parties.
Refined Resin is currently retrofitting a legally zoned, state-of-the-art medical cannabis extraction laboratory, in Oakland, California. Accordingly, this purchase order is non-binding as the Refined Resin facility is under construction and Refined Resin must also complete the licensing process. The facility is targeted to be fully operational by early 2019.
"To secure a large purchase order from a top California brand is a testament to the stature of the Refined Resin team and bodes well for future demand," said Andriyko Herchak, President and CEO of FinCanna Capital. "Refined Resin's principals have extensive experience in extraction, manufacturing, business operations and marketing that is evidenced by their ability to obtain an order of this size while still completing their production facility. This accomplishment is a clear demonstration of their ability to grow a lucrative business which should be highly rewarding for the Refined team and our FinCanna shareholders."
It is Refined Resin's intention to become a premier producer of bulk quantities of THC distillate and various high value concentrates produced via hydrocarbon-based solvent extraction. The company plans to provide white-labeling services to licensed brands and infused product manufacturers.
About FinCanna provides financing to top-tier companies in the licensed medical cannabis industry in exchange for a royalty on revenues. FinCanna, led by a team of finance and industry experts, is building its diversified portfolio of royalty investments in scalable, best-in-class projects and companies in U.S. legal states, with a focus on California. For additional information visit http://www.fincannacapital.com"
Invictus MD Strategies Corp. (OTCQX: IVITF) is a global cannabis company offering a selection of products under a wide range of lifestyle brands. Recently, the Company announced it have completed its first shipment of recreational cannabis to British Columbia on time, following its inaugural shipment to Alberta. Staff have been working around the clock to meet aggressive deadlines set to ensure Invictus products are available to adult consumers on October 17th, 2018. This significant milestone was made possible by the Company's balanced and deliberate approach towards cultivation and regulatory compliance. While Invictus focused on expansion of its cultivation facilities, Acreage Pharms secured excise stamps and Health Canada approved packaging for the adult recreational market early, allowing Purchase Orders to be completed on time and without issue. Invictus is scaling up its cultivation facilities to support local and international opportunities, with its Phase 3 and 4 expansion at Acreage Pharms constructed to support world-class EU-GMP standards. The 90,000 sq. ft. Phase 3 facility, expected to be complete in January 2019, is fully funded as a result of the previously announced USD 25.5 Million loan from ATB Financial.
CannaRoyalty Corp. (OTCQX: CNNRF) is a North American cannabis consumer product company currently focused on building a leading distribution business in California. Recently, the Company announced that 420 Wellness, a subsidiary of investee 180 Smoke, has been approved by the City of Calgary to open its first cannabis dispensary in the city, pending approval from the Alberta Gaming and Liquor Commission. Since CannaRoyalty and Trichome's previously disclosed initial investment in May 2018, 180 Smoke has expanded its retail footprint with a focus on increasing the company's presence outside of the Greater Toronto Area (GTA). In addition to the recently approved Calgary location, 180 Smoke is opening two vape store locations in Edmonton, AB. In the GTA, 180 Smoke recently opened a flagship location on Queen Street West, which is the fastest growing store in the network. On the back of an expanding retail footprint and continued same-store sales growth, 180 Smoke has grown revenues 51% year-over-year to USD 6.78 Million for the eight-month period ended August 2018, for an annualized revenue pace of roughly USD 11 Million
The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) is a research & development company licensed under the Access to Cannabis for Medical Purposes Regulations ("ACMPR") to cultivate medical cannabis. Earlier this month, the Company announced the launch of its premium, certified organic cannabis brand. This preeminent launch coincides with Canadian Organic Week, the largest annual celebration of organic food, farming and products across the country. This is a pivotal step for the Company in becoming the largest, organic cannabis brand in the world. In addition to producing a premium cannabis experience, TGOD will be the industry leader in sustainability and environmental standards. Production of organic nutrients requires less processing, and organic pest control has less environmental impact due to fewer chemicals entering the ecosystem. TGOD will operate the largest LEED-certified facility in the world and is building all facilities to GMP standards. LEED is an internationally recognized green building certification system, including energy savings, water efficiency, CO2 emission reduction, and indoor environmental quality.
Leafbuyer Technologies, Inc. (OTCQB: LBUY) is one of the most comprehensive online sources for cannabis deals and information. Leafbuyer Technologies, Inc. recently announced a non-binding letter of intent to acquire California-based Greenlight Technologies. Greenlight provides cannabis consumers real-time mobile ordering and loyalty rewards through a native application that integrates with the local dispensary's point of sale system. "We believe Greenlight's technology and team will be a tremendous addition to Leafbuyer. Their presence in California will allow us to serve that rapidly growing market and tap into a significant new revenue stream. Offering mobile app pre-ordering will allow consumers to skip long lines and enjoy a better overall experience. We believe this service will offer dispensaries a powerful new tool and will allow us to cross-sell the Leafbuyer suite of solutions to a much larger sector of the market," said Kurt Rossner, Chairman and Chief Executive Officer of Leafbuyer.
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