California to Lead in 2018 With Recreational Marijuana - Michael

California to Lead in 2018 With Recreational Cannabis

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California has always been a leader; people across the world often look to the west coast as a vision for the future, a catalyst for change, progression, and acceptance. At the forefront of progressivism, California takes the lead in the U.S. in areas of climate protection, civil liberties, and electing more diverse officials into office. The decriminalization of marijuana is now included on that list of progressive policy change.

California in 2018: On January 1st, California was positioned as a new leader in defining and legitimizing legal weed culture in the United States. If California does things right, it could really use this new platform to influence change throughout the country and become established as a global leader in the recreational marijuana industry. Here are some ways that California is positioned to disrupt the industry in 2018.

Opportunity for Better Laws & Regulations

2018 is going to be a historic year for recreational marijuana, but there’s still much work left to do in terms of policy. In fact, the first six months might be more of a transition period given the size of the market and that most cities and counties are still scrambling to establish regulations. Most of the state didn’t go live with recreational sales on January 1st. Los Angeles, for example, only began to accept applications for dispensaries on January 3rd and in effect, dispensaries themselves will not receive licenses for weeks. Availability will depend upon how a local government has treated marijuana for the past decade or more, so if your hometown never saw the sale of medical marijuana, you’re not likely to see recreational marijuana soon.

Although lawmakers have been slow moving on creating recreational regulations, perhaps that means there is still time for cannabis business owners to get involved. If ever you find an issue with a regulation your local lawmaker wants to pass, pick up the phone and call their office or attend a council meeting. It is important to lend your voice as a business owner, to tell lawmakers that you support regulation of the industry and what you feel would make it better. As a cannabis business owner, it is important to remain engaged and it will be only through collaborative effort that a better cannabis industry will grow. Click here to view who your local lawmakers are.

Global Brands

Expect to see a rise of companies looking to service the marijuana industry, especially in the tech sector, where people are reimagining how business is done. In today’s retail market, consumers expect convenience, such as online shopping and on-demand delivery. With a growing customer base, businesses need customer relationship management systems and marketing automation platforms to manage books, promotions, or loyalty programs.

Keep an eye out for ancillary businesses targeting the industry by developing new marketing and sales tools, advanced home grow systems, research & data platforms, apps and more. With startup hubs in San Francisco, Silicon Valley, Los Angeles, and San Diego, there’s a lot of possibility for growth in the industry with ample opportunity to become the next “Uber” for weed. Pay attention to the fast-growing cannabis economy and consider taking stock. With a rising customer base and consistent sales growth, marijuana stocks will certainly have investors seeing green. A few California-based companies to check out include Botana (LA), a data analytics platform helping cannabis growers become more efficient and profitable; EventHi (San Diego), an event management ticketing platform for cannabis events; and Loto Labs (San Francisco), who has built the first Smart Vape powered by Induction called the Loto Lux.

Shifting Attitudes & Growing Support

It is clear there has been a shift in the way the American public views marijuana, and according to a Gallup poll released in October 2017, nearly two-thirds of American adults believe marijuana use should be legal. Nevertheless, recreational cannabis remains federally illegal, making some aspects of normal business fairly challenging with disadvantageous tax laws and little to no access to basic banking services. As the public’s support continues to grow, perhaps mounting pressure will build on Congress to ultimately change its Class I schedule classification of it.

Other numbers that show how recreational legalization has benefitted society comes from Colorado. More than three years after Colorado legalized marijuana, a recent federal survey has found that teens are now actually smoking less, taking the centennial state below the national average. In fact, the number of 18-to-25-year-olds using alcohol on a monthly basis fell by four percentage points between 2014-2015 and 2015-2016. This is an age group with the highest proclivity to use cannabis, thus proposing a number of young adults are choosing to smoke marijuana instead of drinking now that the option is available to them.

Studies like this showcase the problem with theories which argue making marijuana use legal for adults will result in more young adult use. All in all, it suggests that tighter regulations actually help keep cannabis away from kids. This study and more adds to a growing list of evidence showing that marijuana availability can reduce alcohol consumption, and be considering what public health experts know about the harmfulness of marijuana compared to booze, this should be considered a big public health win.

News like this coming from Colorado and Washington is overwhelmingly positive and serves as an indicator that the economy and society shall move in a forward direction post-legalization for California. The world abroad will be looking closely at what’s happening in the states to learn lessons that can be applied to their own situations. In short, California is positioned to help the world improve by leading by example.

Closing Thoughts

On that note, Jeff Sessions jolted those in the legal marijuana industry last week by announcing his ban of the Cole Memo (you can read it here). His disdain for marijuana use is well-known, but what will happen next is foggy, to say the least. It will also depend on the actions of other federal lawmakers. If this isn’t as good a time as any to become politically involved – it’s now. The country is overwhelmingly in support of legal marijuana. It is time for members of Congress to work to change the laws on the books. Click here to view who your local lawmakers are, and we encourage you to email or call to say that you oppose Sessions’ rescission of the Cole Memo.

About Michael King

Michael King is an experienced professional with a background in finance, private equity, real estate and consulting. He is currently a principal in one of the leading Cannabis consulting firms in the country — Duard Ventures.

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Los Angeles paves way for regulated marijuana market - Michael K

Los Angeles paves way for regulated marijuana market on ‘historic day’

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Los Angeles could be among a handful of California cities to begin recreational marijuana sales on New Year’s Day after the City Council’s unanimous approval of cannabis industry regulations Wednesday.

“Let’s don’t be a part of history. Let’s make history,” Council President Herb Wesson said moments before 12 council members voted to pass three ordinances to fully regulate both the adult-use and medical cannabis sectors in the nation’s second-largest city.

Among other things, the regulations include:

A social equity program that will require the city to license likely hundreds of applicants that were adversely affected by the war on drugs.

License caps that will limit exactly how many MJ business permits are ultimately issued.

Specific guidelines for businesses looking to obtain both L.A. and state licenses, including retailers, growers, edibles makers, MJ delivery operations and testing labs.

Provisional licensing for nonretail marijuana businesses.

Priority licensing for longstanding medical marijuana retailers that were already compliant with city law.

The ordinances and related documents can be viewed here, here and here.

The Los Angeles Cannabis Task Force celebrated the vote, calling the development a “watershed moment.”

“A regulated commercial cannabis market in Los Angeles is an accomplishment over a decade in the making,” the Task Force declared in a news release. “Now, for the first time, there exists a legal, sanctioned pathway for cannabis business licenses in the second-largest city in the United States.”

‘Work to do’

However, a myriad of questions must still be answered and further changes to the law are in store, said Adam Spiker, the executive director of the Southern California Coalition.

“The takeaway is, historic day, but lots of work still to do,” he said.

First and foremost, Spiker said, it’s incumbent upon city officials to now fast-track priority licensing for the few medical marijuana dispensaries in the city that could be eligible to begin rec sales Jan. 1.

But, he emphasized, it’s unclear whether the city will be able to move fast enough to meet that deadline.

Among his other concerns: As written, the regulations make it a near-certainty there won’t be room for hundreds of existing marijuana businesses that currently operate in the quasi-legal medical cannabis trade.

Specifically, he pointed to thousands of growers in the city that are still unlicensed.

“I’m not sure what to tell the supply-chain operators that have been in this industry forever,” Spiker said.

“There’s still a lot of angst and uncertainty for those folks that not only supply the (retailers that qualify for priority licensing) but also licensed operators up and down the state.”

Social equity provision limiting?

According to Spiker, it’s highly unlikely that all existing businesses in L.A. will be able to get licenses, especially given the constraints of the social equity provision.

The city originally had proposed a mandatory one-for-one license guarantee for those who qualify for the social equity program but now has moved to a two-to-one provision, according to the Los Angeles Times.

Spiker said there will be license caps under the regulations, but he’s not clear exactly how L.A. will determine the precise number of permits.

One city council document, for instance, appears to suggest only 390 retail licenses will be issued for the entire city.

If those limits stand, Spiker worries that the licensed market won’t be able to match market demand and that the city’s regulations will inadvertently give further life to the black market – especially since many suburbs in the metro area are choosing to ban MJ businesses outright.

That means there will be a constant influx of customers to L.A. from surrounding municipalities, he suggested. Not to mention tourists.

“If the city does not meet demand – both medical and recreational – it is just giving fuel to the illicit market,” Spiker said.

Alterations expected

Significant changes likely will be made to the regulations in coming months, particularly the social equity program.

About Michael King

Michael King is an experienced professional with a background in finance, private equity, real estate and consulting. He is currently a principal in one of the leading Cannabis consulting firms in the country — Duard Ventures.

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California Report on Cannabis and Banking - Michael King

California State Treasurer Presents Report on Cannabis and Banking

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As many of you know, cannabis businesses are faced with many roadblocks and hurdles, banking being one of them, but as California nears recreational cannabis in less than two months, it appears that we are a bit closer to potentially having a solution to our cash and banking crisis.

Today, John Chiang, the California State Treasurer and the Cannabis Banking Working Group held a press conference to announce the release of their report on “Banking Access Strategies For Cannabis-Related Business.” The past year John Chiang and 18 representatives from the Cannabis Banking Working Group have gone up and down California meeting with over 50 expert panelists to discuss the issues and reviewing possible solutions for the industries banking issue.

Before I go into the recommendations the Cannabis Banking Working Group presented, let’s review the past year.

Why is this an issue?

Although medical cannabis has been permitted in California for more than two decades, the production, distribution, sale, and possession of cannabis still remains illegal under federal law and is listed as a Schedule 1 controlled substance.

This impacts legal California cannabis businesses from opening a business account, writing checks, accepting credit cards, transferring money and forces these businesses to deal with large amounts of cash.

Outside of not having access to a bank account, this also has created a considerable safety concern against the safety of business owners and employees as they have to run there businesses strictly on a cash-based service and this matter doesn’t just affect cannabis businesses but state and local government agencies as well.

Did you know: A few years ago in Southern California, a dispensary owner was kidnapped, tortured and manned after being driven into the desert in search of non-existent money.

On top of safety, by not providing businesses with a banking solution many have stayed and will continue to stay underground, and it hinders them the opportunity to become a transparent, regulated, tax-paying business.

Cannabis Banking Working Group

John Chiang, as California’s State Treasurer saw these concerns and knew something had to be done, this is when the Cannabis Banking Working Group was created. These 18 representatives came from the cannabis industry, financial institutions, and government tax collection, law enforcement, and regulatory agencies came together and held over six public meetings around the state in the hopes that they would all be able to find a possible solution or recommendation to help deal with this cannabis banking problem.

On February 10th, 2017, the Cannabis Banking Working Group met in Los Angeles, California. Jerred Kiloh of the United Cannabis Business Alliance, expressed his frustration, “Security issues, keeping high amounts of cash on hand, access to capital to grow their business. Legal representatives and contractors are all losing their bank accounts for working with cannabis companies.” Mr. Kiloh stated, “I had to open a total of eight new bank accounts, and with these changes, my employees and staff lost healthcare.”

Kenneth Berke of Payqwick presented a possible solution at that meeting. Mr. Berke built out a sophisticated e-wallet that can go from processors to retailers and from consumers to retailers. They developed a fully compliant program and are working closely with Washington Liquor and Marijuana Board.

In July 2017, the Cannabis Banking Working had its fourth meeting in San Diego, where they heard John Hudak, Deputy Director of the Center for Effective Public Management, who made an important statement,” the banking solution should be achieved for the 40 million California’s who for them this is a public health and public safety issue.” Hudak reminded the room that this isn’t just about business. It is important to make sure this industry can be tracked, traced, kept honest and regulated efficiently so that the individual knows exactly what product they are getting, where it came from, and that the tax money ends up in the treasurer where it belongs.

Ali Fakhri of EventHi, an online event management platform specific to the cannabis industry, presented a possible solution at his panel. Mr. Fakhri and Sundie Seefried, CEO of Safe Harbor Private Bank publicly announced that EventHi and Safe Harbor Private Bank, a compliance-based cannabis banking program, which is a division of Partner Colorado Credit Union were officially working together, making EventHi one of the first California businesses to work with Safe Harbor.

California Nears Recreational Cannabis

So that leads us to today, John Chiang presented a series of steps that they believe could point us in the right direction. However, although these measures are recommended the reality is there is no definitive solution to this cannabis banking issue until the federal government reschedules cannabis or Congress approves safe harbor legislation protecting financial institutions that serve cannabis businesses from federal penalties.

The Four Recommendations

Cash handling the collection of taxes and fees
To have state and local agencies contract armored couriers to pick up tax and fee payments in cash and deliver the funds to financial institutions.

Expanding cannabis industry access to banking services under current law
To have the state and local agencies create an online portal that aggregates data on cannabis business. The portal should be designed with financial institution compliance needs in mind and provide material to help institutions fulfill their know-your-customer responsibilities.

A state-backed financial institution
This would entail California creating a state-backed financial institution in California that can serve cannabis businesses directly. A public institution that would either (1) finance public infrastructure and expand banking for underserved groups, including the cannabis industry; or (2) take deposits, make loans, and provide other services primarily to cannabis producers, distributors, retailers, and related businesses.

Full access to banking services: the federal solution
This proposal is where an association is developed for cannabis-legal states, local governments, cannabis and financial service industries and law enforcement to advocate for changing federal laws.

In Conclusion

As we get closer and closer to 2018, although we don’t have an exact solution, it appears we are closer now more than ever, but the work doesn’t stop here. We all have to continue our roles as not just cannabis entrepreneurs but as advocates for this plant and this industry.

And you can do so easily by joining a cannabis industry association, reaching out and speaking to government and city officials or by continuing to educate others on cannabis and the cannabis industry.

About Michael King

Michael King is an experienced professional with a background in finance, private equity, real estate and consulting. He is currently a principal in one of the leading Cannabis consulting firms in the country — Duard Ventures.

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Ending Marijuana Prohibition in U.S. Gets Record Support - Michael King

New Gallup Poll Finds Record Support for Making Marijuana Legal in U.S. – 64%

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Marijuana is currently legal for adults in eight states and the District of Columbia; several more states to consider regulating marijuana like alcohol in 2018.

Statement below from the Marijuana Policy Project, the nation’s largest marijuana policy organization

WASHINGTON — A new Gallup poll released Wednesday shows support for making marijuana legal in the U.S. has reached a record level of 64%, up from 60% last year and 50% in 2011.

This year’s national survey shows the greatest approval for ending marijuana prohibition in the history of the study, and the first time that a majority of those who identify as Republicans support making marijuana legal (51%).

Voters in eight states have passed initiatives regulating and taxing marijuana similarly to alcohol, and marijuana is legal for adults in the nation’s capital. Earlier this year, Vermont became the first state to approve a bill through its legislature that would have made marijuana legal for adults before being vetoed by the governor.

Advocates in Michigan are expected to qualify an initiative for the ballot next year that would regulate marijuana for adults, and at least 18 states are expected to have legalization bills introduced during their 2018 legislative sessions.

Statement from Morgan Fox, director of communications for the Marijuana Policy Project:

“It makes sense that support for ending marijuana prohibition is increasing. Americans are tired of wasting resources arresting hundreds of thousands of individuals every year for using a substance that is safer than alcohol. In the five years since the first states made marijuana legal for adults, it has become increasingly clear that — unlike prohibition — regulation works. Adult-use marijuana laws create jobs, generate tax revenue, and protect consumers while taking the marijuana market out of the hands of criminals.

“As public support for ending marijuana prohibition continues to grow, it is crucial that states continue to be given the freedom to serve as laboratories of democracy. We urge the Department of Justice in particular to continue its policy of not interfering in states with well-regulated adult-use and medical marijuana programs while lawmakers catch up to the will of the people.”

About Michael King

Michael King is an experienced professional with a background in finance, private equity, real estate and consulting. He is currently a principal in one of the leading Cannabis consulting firms in the country — Duard Ventures.

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Neil deGrasse Tyson: No reason for weed to be illegal - Michael King

Neil deGrasse Tyson agrees with Carl Sagan: There’s “no reason” for weed to be illegal

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Astrophysicist Neil deGrasse Tyson, among the most well-known living scientists this side of Stephen Hawking, said this week that “there’s no reason for [marijuana] to ever have been made illegal.”

The remark came in response to a question submitted by Tom Angell of the pro-legalization group Marijuana Majority. Angell asked Tyson if he agreed with astrophysicist Carl Sagan that marijuana should be legalized.

“If you really analyze it,” Tyson said, “relative to other things that are legal, there’s no reason for it to ever have been made illegal in the system of laws.”

“That is extremely rational, which I expect from you, and you’re absolutely right,” replied host Chuck Nice.

“Alcohol is legal,” Tyson added, “and it can mess you up way more than smoking a few J’s.”

Nice then spent several minutes ribbing Tyson over his archaic choice of marijuana slang.

“The last time I was like, in a cloud of it? That’s how people spoke,” Tyson said.

Neil deGrasse Tyson has in many ways followed the late Carl Sagan’s footsteps in becoming a well-known evangelist for space science and the scientific method more broadly. Sagan, most famous for the television series “Cosmos” (which Tyson later rebooted), was a lifelong marijuana user who wrote extensively — albeit privately — about what he saw as the benefits of the drug.

“The illegality of cannabis is outrageous,” Sagan wrote in an anonymous essay for the 1971 book “Marihuana Reconsidered,”

“an impediment to full utilization of a drug which helps produce the serenity and insight, sensitivity and fellowship so desperately needed in this increasingly mad and dangerous world.”

Neil deGrasse Tyson has been more circumspect on the merits of drug use, at least publicly. “I don’t count myself among active recreational drug users,” Tyson said in a 2015 Reddit AMA. “For me, the least altered state of awareness I can achieve is the one I seek, because that one is most likely to be closest to reality.”

J’s and altered states aside, Tyson’s argument against prohibition is on fairly sound scientific footing: Public health experts generally agree that relative to alcohol, marijuana is less-habit forming, less toxic to the human body, less of an impairment to driving and much less linked to violent behavior. President Richard Nixon placed the drug in the most restrictive category of federal prohibition in 1972, overruling the recommendation of his own marijuana task force, which argued that the drug wasn’t particularly dangerous and shouldn’t be federally prohibited.

Tyson’s remarks were also similar to ones by President Barack Obama in 2014. “I don’t think [marijuana] is more dangerous than alcohol,” he told the New Yorker. “As has been well documented, I smoked pot as a kid, and I view it as a bad habit and a vice, not very different from the cigarettes that I smoked as a young person up through a big chunk of my adult life.”

An August Quinnipiac poll found that more than 61 percent of Americans now say marijuana should be legal, 94 percent support the medical use of marijuana, and fully three-quarters oppose the federal government enforcing marijuana laws in states that have legalized it.

About Michael King

Michael King is an experienced professional with a background in finance, private equity, real estate and consulting. He is currently a principal in one of the leading Cannabis consulting firms in the country — Duard Ventures.

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How To Get Your Legal Weed Permits in California - Michael King

How To Get Your Legal Weed Permits in California

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It’s officially time to start looking into legal weed permits in California! The state is about to fully legalize recreational cannabis. If you want to break into the industry, it’s time to prepare.

The Steps For Licensing

The new year is a time for new beginnings.

In California, January 1, 2018, will mark the day when the Golden State starts the task of issuing legal weed permits in California. For those in the state who hope join the Green Rush and get in on the action, this date is everything.

If you’re planning on starting your own weed business, here’s a simplified, yet comprehensive, guide on how to start.

First Thing’s First

There are two important things to know before we start. If you’re an eager beaver and planning to apply for legal weed permits in California during the first couple of months of legality, you will only be able to get a temporary license.

This is because the state still has not finalized everything regarding regulation on their end.

And before you can obtain a statewide permit, you will need to apply for and be granted a local permit. Since both local and state permits are necessary to start and maintain cannabis businesses, you will also need to wait until your city finalizes local regulations.

The Application

You will be able to submit your application one of two ways. You can send your application through the mail if you don’t trust the Internet. Or you can apply online if you don’t trust the humans working in the mail system.

Either way, you’ll need the following four things:

1. Permission from the Government

This should be obvious, but unless you can show proof that you’re authorized to open a cannabis business, you won’t be able to move forward with your application for legal weed permits in California.

2. Business Information

You don’t need to present a detailed business plan.

For this component, you pretty much just need the basics of your business. Useful and required information includes the name of the business, relevant contact information and a brief summary of what your business will be.

And speaking of what kind of business you’re planning on having…

3. Your Desired Type and Class of License

You’ll need to officially decide upon what avenue you’re traveling on in terms of business.

In other words, pick a side: medical cannabis or recreational cannabis.

From there, you will need to specify what kind of business you will be running. Some options for this include retailer, testing lab and distributer, among others.

4. A Basic Floor Plan

This doesn’t have to be too detailed. The people reviewing your application just want to know the layout of the rooms and divisions of your business.

When you submit an application for a permanent license, though, you’ll need to provide more details, like what kind of security measures you will have.

Final Hit: How To Get Your Legal Weed Permits in California

None of this sounds too daunting, right?

Compared to the college application process, this seems like a walk in the park. Hey, no one’s asking you to write an essay explaining why you’re special and different from the millions of other students vying for a spot!

Again, keep in mind that this is a simplified and streamlined guide to legal weed permits in California. For more detailed information, visit the official website of the state’s Bureau of Cannabis Control. Good luck, everybody!

About Michael King

Michael King is an experienced professional with a background in finance, private equity, real estate and consulting. He is currently a principal in one of the leading Cannabis consulting firms in the country — Duard Ventures.

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Colorado Cannabis Legalization Increased Property Values - Michael King

Colorado Cannabis Legalization Increased Denver’s Property Values, Study Finds

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It’s no secret that the advent of Colorado cannabis legalization increased demand for industrial real estate, but how has it affected housing prices?

According to a new study, “Contact High: The External Effects of Retail Marijuana Establishments on House Prices,” the property values for houses within .1 miles of a retail cannabis dispensary in Denver have increased by more than 8% since recreational cannabis sales began in 2014.

By using publicly available data from the Colorado Department of Revenue’s list of retail licenses and the City of Denver’s property information, researchers at the Wisconsin School of Business were able to study how property values were affected by retail conversions, i.e., medical cannabis dispensaries converting to recreational cannabis sales.

“The presence of retail marijuana establishments clearly had a short-term positive impact on nearby properties in Denver,” said Moussa Diop, Wisconsin School of Business assistant professor of real estate & urban land economics and co-author of the study.

For those houses within .1 miles of a retail conversion, the average increase in property value was $27,000 for a single-family home.

According to Diop, “This suggests that in addition to the sales and business taxes generated from the retail marijuana industry, municipalities may experience an increase in property taxes. It’s an important piece of the puzzle as more and more voters and policy-makers look for evidence about the effects of legalizing recreational marijuana, as the issue is taken up by state legislatures across the country.”

It’s important to note that the study also compared property values of houses within .1 miles of a retail conversion to houses within .1 miles of a medical cannabis dispensary that hasn’t converted to recreational sales.

“Those properties located near a retail conversion do experience a larger price increase – relative to those near a non-converter – after conversion. This provides evidence that it is the actual conversion to retail that is increasing neighboring property values,” researchers explained in the study.

As this study highlights, Colorado cannabis legalization may make the case for medical-only states to reexamine the potential secondary benefits of legalizing a recreational market.

About Michael King

Michael King is an experienced professional with a background in finance, private equity, real estate and consulting. He is currently a principal in one of the leading Cannabis consulting firms in the country — Duard Ventures.

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Legal and Medical Cannabis Investment on the Rise - Michael King

Legal and Medical Cannabis Market Investments on the Rise

Article originally published by Markets Insider

According to a report by New Frontier Data, medical cannabis sales are forecast to grow to $5.3 billion in 2017, or accounting for 67% of total cannabis sales. By 2025, medical sales in currently legal states are forecast to grow to $13.2 billion and will account for 55% of all sales. Comparatively, adult-use sales in 2017 are forecast to reach $2.6 billion, or rising to $10.9 billion by 2025. This puts emphasis on the state of California, which offers the perfect example of why it is so important to understand trends in consumer behavior. The state’s legal industry is forecast to grow from $2.8 billion in 2017, to $5.6 billion in 2020. AmeriCann Inc. (OTC: ACAN), Corbus Pharmaceuticals Holdings, Inc. (NASDAQ: CRBP), Cara Therapeutics Inc. (NASDAQ: CARA), Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE), AXIM Biotechnologies, Inc. (OTC: AXIM).

New Frontier also commented on the growth in cannabis investing over the past two years, including how the investment community has responded to the 2016 general elections. Cannabis stocks have seen significant growth in recent years, with the Viridian Cannabis Stock Index growing 236.1% in 2016 alone.

“Cannabis stocks significantly outperformed major indexes in 2016, fueled by speculative investment based on anticipated expansion of new legal markets.

In the run up to the election, stocks increased by 207.8% and continued to rise, even with an uncertain future under the new administration. While recent comments by the Trump administration did have an initial dampening effect on the market, we have seen continued growth relative to Q4 2016 whereby cannabis stocks are still outperforming other sectors,” said Giadha Aguirre De Carcer, CEO of New Frontier Data.

AmeriCann Inc. (OTCQX: ACAN) an Agricultural-Technology company that is developing the next generation of sustainable, state-of-the-art medical cannabis cultivation properties, announced earlier today that it has secured an equity investment commitment of $10,000,000 from Mountain States Capital, LLC (“MSC”).

The majority of the investment from MSC will be utilized to develop the first phase of AmeriCann’s flagship project, the Massachusetts Medical Cannabis Center (“MMCC”.) This state-of-the-art cannabis cultivation and processing development project is 47 miles from Boston in the midst of the rapidly growing Massachusetts medical cannabis market.

Mountain States Capital released a statement that, “AmeriCann is well positioned to benefit from the recent implementation of the landmark adult-use cannabis program in Massachusetts. The Commonwealth, and the country, needs the sophisticated, technologically advanced facilities that AmeriCann is delivering.”

The MMCC project is approved for 1 million square feet, which will be developed in phases and is expected to be one of the most technologically advanced cultivation facilities in the nation.

Massachusetts is one of the most dynamic developing cannabis markets in the United States,” stated AmeriCann CEO Tim Keogh. “Our MMCC project will become a center of excellence for quality, consistency and efficiency and play an important role in helping to provide the cannabis infrastructure the Commonwealth requires.”

The project’s first phase will consist of a 30,000 square foot greenhouse, laboratory and research center. AmeriCann has agreements with Coastal Compassion, Inc., one of a limited number of licensed operators in the Massachusetts cannabis market. Coastal Compassion, Inc. will lease 100% of the first phase of MMCC upon completion. In addition to funding the initial 30,000 square foot facility, the balance of the equity is expected to be utilized to prepare for projects in other regulated markets.

About Michael King

Michael King is an experienced professional with a background in finance, private equity, real estate and consulting. He is currently a principal in one of the leading Cannabis consulting firms in the country — Duard Ventures.

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