CORAL SPRINGS, Florida, July 13, 2016 /PRNewswire/ --
It is estimated that the expense to start a legal marijuana business in the U.S. could cost more than $1Million, according to the Marijuana Business Association. The absence of commercial credit available for the industry in past has opened up opportunities for institutions & private lenders who want to step into the cannabis industry with the average loan estimated at $750,000. Microsoft Corp. (NASDAQ: MSFT) recently became the first major company to announce its participation in the cannabis/marijuana sector, as the computer giant has partnered with Kind Financial, which helps businesses and government agencies track sales of legalized marijuana.
In major funding news and developments: Seventh Point, LLC., a private equity firm focused on acquiring legal, California-based medical marijuana dispensary and cultivation assets announced today that its initial $750,000 friends and family funding round is oversubscribed. The firm has also received two separate $5.5 million financing Letters of Intent for the completion of its first fund - an investment unit that includes the acquisition of a legal Los Angeles based dispensary, its related license, an on-site cultivation facility, and a satellite cultivation buildout.
Steve Gormley, Seventh Point's CEO said, "We are excited to close our first round and will be working with several investment groups to deploy $75MM into the legal cannabis market over the next 36-42 months. We have seen a tremendous shift in the willingness of investors to come off the sidelines and take advantage of the tremendous opportunity available in legal cannabis."
Read the full Seventh Point Press Release at http://financialnewsmedia.com/profiles/7point.html
Once cannabis is rescheduled, the expected value of the legal cannabis industry is estimated at $38.6 billion (in today's dollars), or ~12% larger than the entire "Organic Food" industry. Current market players, such as Seventh Point, who have a demonstrable history of successfully working within this highly regulated market-place, will be in first position to capitalize on the expected exponential growth outlined above (a 500% increase in market size).
Dermod (Trip) Ives, III, Seventh Point's COO said, "What separates Seventh Point from its PE competitors is that Seventh Point does not simply make passive investments in existing companies. Instead, Seventh Point wholly owns its acquisitions, manages the day-to-day operations and bring years of industrial cannabis experience to the table as well as Fortune 50 consumer package goods leadership and Wall Street senior leadership. At this time, Seventh Point is focused on bringing mature, enterprise level strategies to this "cottage" industry specifically within Los Angeles. The reasons for focusing on LA are the favorable regulatory environment and the fact that nearly 25% of the industry's $4.1 billion in revenue was generated within LA last year. LA is to cannabis as New York is to fashion and Silicon Valley is to tech." Media Contact for Seventh Point is Ethan Andersen and can be reached at [email protected] or 732-207-6771
In other sector related news of importance: Terra Tech Corp. (OTCQX: TRTC), a vertically-integrated, cannabis-focused agriculture company, recently announced it has expanded its offering of the IVXX Vape Product line with the launch of the "Z92" cartridges, the second line of cannabis oil cartridges. This follows the launch of the Company's original Z35 cannabis oil cartridge line in April 2016.
PharmaCyte Biotech, Inc. (OTCQB: PMCB), a clinical stage biotechnology company focused on developing targeted treatments for cancer and diabetes using its signature live-cell encapsulation technology, Cell-in-a-Box®, announced earlier this month that a recently published scientific article supports PharmaCyte's ongoing research efforts that concern medical uses for constituents of Cannabis known as cannabinoids. The article titled "Amyloid proteotoxicity initiates an inflammatory response blocked by cannabinoids" was published in the journal, Aging and Mechanisms of Disease and appeared online on June 23, 2016.
GW Pharmaceuticals plc (NASDAQ: GWPH), a biopharmaceutical company focused on discovering, developing and commercializing novel therapeutics from its proprietary cannabinoid product platform, announced that it intends to sell, subject to market and other conditions, $150,000,000 of American Depositary Shares ("ADSs") representing ordinary shares of GW on the NASDAQ Global Market in an underwritten U.S. public offering. GW expects to grant the underwriters a 30-day option to purchase up to an additional $22,500,000 of ADSs at the offering price. There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. The price for the offering has not yet been determined.
Medical Marijuana, Inc.'s (OTC: MJNA) management team announced that the Company is launching a new hiring drive for sales professionals as it continues rapid expansion in the United States and international markets including Latin America. "The world is waking up to the vast untapped potential of cannabinoid (CBD) hemp oil and our flagship product, Real Scientific Hemp Oil™ (RSHO™), continues to show increasing demand across the globe," said Dr. Stuart Titus, Chief Executive Officer of Medical Marijuana Inc.
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