Cannabis Plays in Nevada:
From Payment Tech Solutions to Retail
Point Roberts WA, Delta, BC,
Canada -- August 26, 2019 -- InvestorsHub NewsWire --
via Investorideas.com, a leading
investor news resource covering hemp and cannabis stocks releases a
snapshot focusing on the recent developments occurring in the
Nevada cannabis market as it matures and
expands.
A recent news report
discussing the potential of the Nevada market versus the
California market mentioned, “a more intriguing metric offered in
State of the Legal Cannabis Markets -- spending per capita
-- suggesting that another state could blow California out of the
water in terms of attractiveness to businesses and investors:
Nevada.”
The article continued,
“Between 2018 and 2024, Arcview and BDS are forecasting that
Nevada's population will increase by about 10% to 3.4 million. Yet,
with the Silver State opening its doors to recreational marijuana
sales in July 2017, total legal spending is expected to surge from
$567 million in 2018 to $1.41 billion by 2024. On a per-capita
basis, this works out to $415.57 in spending. That's more than
double California ($172.08), and is higher than every other state
in the country. It's no secret that Nevada's exceptionally high
spending per capita forecast stems from the state's strong tourism.
Las Vegas is a core attraction for Americans and visitors from all
over the world, which should allow cannabis companies to focus
their attention on Sin City to drive sales and margins. Plus,
Nevadans are faced with a combined 25% tax rate, including a 15%
tax on wholesale sales, and 10% on retail sales. That's
significantly less than neighboring California, which should help
reduce illicit production.”
Assuming Arcview's and BDS
Analytics' projections prove relatively accurate, there are
a
number of ways to play the most lucrative
market in the United States.
Global Payout
Inc.
(OTC:
GOHE),
through its Nevada based subsidiary MTrac Tech Corporation,
provides electronic wallet and e-banking financial solutions for
the marijuana industry, recently
announced
that the company has retained one of the nation’s leading
government affairs organizations, Strategies 360, to further the
platform’s legislative push to be recognized as the most innovative
and seamless SaaS (Software as a Service) solution to facilitate
cashless, compliant, and secure payments for the legalized cannabis
industry.
Headquartered in Seattle,
WA, S360 represents a broad range of sectors with an expanding
footprint in 12 western states and DC. The S360 team is comprised
of some of the brightest, forward-thinking former executives from
various industries, such as technology, finance and energy, in
addition to former state public office
holders.
One of the primary goals of
the MTrac platform has been to assist governments in their efforts
to both regulate the cannabis industry and solve the issues
associated with cash heavy transactions and a lack of available
banking resources. Some states have recently been exploring
closed-loop systems to implement statewide regulatory oversight of
legal cannabis operations. For example, the state of Arizona has
opened a “Fintech” sandbox, allowing various closed-loop systems
into the Arizona market on a limited basis to see how well they
operate. Nevada will very shortly, be opening a Request for
Proposal to find a closed-loop, blockchain platform that will allow
their cannabis industry to accept digital payments. It is the
opinion of management that the MTrac system is the most seamless
version of this payment platform available and offers the added
benefit of having a large and growing customer base to provide
proof of concept, similar to the recent state-wide launch in
Louisiana.
“The agreement with S360
could not have been timelier in terms of presenting our solution to
the western region, to showcase the features and functionality of
the platform’s closed-loop eWallet accounts for the states’
lawmakers.” said Mr. Jason LeBlanc, Chief Compliance Officer of
MTrac. “We are extremely excited to be working with such a dynamic
and results-driven government affairs team. The opportunity to
present our platform at the highest levels of state regulators and
legislators is an objective that our legal and compliance teams
have been working toward for the last several months, and the
partnership with S360 is now making this opportunity a
reality.”
The Company looks forward to
working closely with the S360 team to introduce its payment
platform to the western states and will keep shareholders apprised
of its progress at regular intervals.
Terra Tech
Corp. (OTCQX:TRTC),
a vertically integrated cannabis-focused agriculture
company, recently announced that it
has entered into an agreement to sell 100% of the assets of its
Blüm Reno dispensary, located at 1085 S Virginia St. Suite A, Reno,
NV 89502, including the building where the dispensary is located,
for a purchase price of $15,000,000.
Terra Tech’s Blüm Reno
dispensary has been operational since January 2017 and provides
cannabis products to the local medical and adult-use markets,
including the Company’s proprietary IVXX™ brand of premium medical
cannabis, flowers, shatters, waxes and oils, among other
high-quality cannabis products from a range of reputable providers
of superior grade medical cannabis.
Derek Peterson, CEO of Terra
Tech, commented, ''Selling the cannabis retail license for our Blüm
Reno dispensary is another key milestone in our restructuring plan,
a strategy that has been implemented to leverage our balance sheet
to fuel growth, as opposed to approaching the capital markets more
often than is necessary. Our Blüm dispensary in Reno has
substantially increased in value since its opening, and selling its
assets allows the Company to strategically monetize this asset. To
move forward with our restructuring strategy, we plan to redeploy
the additional capital generated by this sale toward more
productive assets in California in areas such as infrastructure and
sales and marketing.”
Terra Tech anticipates the
closing of the transaction within 90 days, pending all state and
local jurisdictional approvals.
The Nevada market is also
starting to attract more Canadian companies such as 48North
Cannabis Corp. (TSXV:
NRTH) (OTC:
NCNNF), who is hoping to enter into the Nevada market
soon, as the company recently signed a
definitive agreement to acquire Rare Industries, Inc., also known
as Quill, a vape technology brand.
Quill’s products are being
distributed in Oregon and Washington, with plans to reach
California and Nevada. The company said this acquisition is its
first attempt to reach the US.
"48North recognizes the
importance of entering the burgeoning US market. I believe that
authentic brands and next-generation products distributed at scale,
particularly in the emerging US market, will be one of the major
keys to success in the cannabis industry," Alison Gordon, co-CEO of
48North said in a statement. "Without question, the Quill suite of
products aligns closely with 48North's growing portfolio of
brands.”
The total purchase price was
set to $2.1 million out of which $641,000 is cash and $1.46 million
is in the form of 48North’s common shares at a price of around 86
cents per share, the company reported.
48North plans to utilize
Quill’s distribution network to promote its portfolio of brands in
the US, and also to sell Quill’s products via its distribution
networks in Canada.
"48North's industry-leading
focus on next-generation cannabis products and its brand-first
consumer strategy will undoubtedly elevate Quill, its brand and
products to the next-level. The US-based Quill team is eagerly
looking forward to joining with 48North's experienced and dedicated
management team," said Ian Van Vaughan Shaughnessy, co-founder of
Quill.
1933 Industries
Inc. (CSE: TGIF) (OTC:
TGIFF), a vertically integrated cannabis consumer
packaged goods company, recently commenced the
transfer of cannabis plants to its new cultivation facility in Las
Vegas following an extensive period of systems-wide
testing.
"This is a brand new
facility and we worked around the clock to ensure that all systems
were operational before transferring our plants,'' commented Mr.
Tim Spencer, Director of Cultivation. The new facility allows the
Company to cultivate five times the amount of cannabis flower that
was previously produced to meet the high demand for its branded
flower and concentrate products under the Alternative Medicine
Association (AMA) line, which are sold in licensed dispensaries in
Nevada. AMA also produces well-known brands such as Gotti's Gold,
Kurupt's Moonrocks, and Denver Dab Co. under licensing agreements.
The increased flower production in the new facility will meet
growing demand for premium cannabis products and will have a
significant impact on the Company's bottom
line.
The Company will welcome OG
DNA Genetics (DNA), a globally recognized leader in the research
and development of cannabis genetics, to its new facility. DNA
selected AMA as its partner in Nevada due to the Company's advanced
facility, extensive distribution channels and high-quality
standards. DNA will provide specific expertise to AMA for the
development of a consistent phenotype strain for a new line of
co-branded flower and pre-rolls.
"We have constructed a
one-of-a-kind, purpose-built facility, integrated with the latest
technology to increase yields, bolster plant health and assure the
consistency and quality of our products,'' said Mr. Chris
Rebentisch, CEO of 1933 Industries Inc. "As experienced
cultivators, we understand that controlling the growing environment
is the most important part of cultivating high-quality craft
cannabis at scale, which is why we spent significant time, capital
and management's time, to build a state-of-the-art indoor facility.
We are investing in assets that will provide a continuous supply of
the raw materials necessary to produce our premium cannabis
products and improve our margins.”
In order to verify that the
plants are receiving exact amounts of nutrients and moisture
content, the facility was outfitted with drip automation in order
to standardize cultivation techniques and implement efficient
watering and feeding systems with waste reduction in mind. "We can
exactly measure the water and air content, meaning we are driving
each plant's growth with actual data instead of subjective opinion.
This level of refinement is further testament to our commitment to
consistent quality," added Mr. Spencer.
Once the cannabis plants are
situated in the new facility, they will vegetate for approximately
four weeks before the flower cycle is begun for another eight
weeks. The next steps include harvesting, drying, packaging and
third-party testing. The entire cycle takes approximately 16
weeks.
As the Nevada market expands
in population and as more cannabis related infrastructure develops
we can expect it to become a rival, if not overbearing market in
comparison to the already massive California market. State tax and
regulation changes could also play an important role moving forward
as federal legalization remains out of reach in the
US.
For investors following
cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX
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