LOS ANGELES, August 2, 2018 /PRNewswire/ --
FN Media Group Presents USA News Group News Commentary
Now entering its second full year of legalization, the state of Nevada is showing signs of being the surging winner in the cannabis revolution. Unlike in other adult-recreational markets such as
Since the state went legal on July 1st last year, the adult-use market has been on a tear, with sales averaging $1 million a day-thanks to the more than 40 million tourists who visit Las Vegas alone each year.
Overall, the "Silver State" of Nevada has been consistently turning green, and has been drawing in a growing amount of cannabis investment. Companies are starting to seriously pay close attention to Nevada's positive-trending cannabis sales, including Aurora Cannabis (TSX: ACB) (OTC: ACBFF), Golden Leaf Holdings Ltd. (OTC: GLDFF) (CSE: GLH), MedMen Enterprises (OTC: MMNFF) (CSE: MMEN), Terra Tech Corp. (OTC: TRTC), and most recently C21 Investments Inc. (CSE: CXXI) (OTC: CXXIF).
WHY NEVADA IS HOTTER THAN MOST MARKETS
Wholesale per-pound prices received by growers has seen a 30% increase from July 2017 to July 2018-whereas whole cannabis prices in other states have been declining for years.
The net benefit for the state has been overwhelmingly positive, as it continually breaks its own sales records. As of the end of June, Nevada had collected a total of $55.53 million in tax revenues from marijuana alone. Combining all sales for medical, recreational, and marijuana-related goods since legalization began, the total up to the end of June was $433.51 million.
While neighboring California has a much larger population, the profitability of Nevada cannabis operations are much higher. The two states are quite different from each other, based on their approach. Where California's cannabis sector has run head-on into high taxes and excessive regulation, Nevada has simplified its market at the retail level.
California's approach has translated to high legal prices and low sales volume, leaving plenty of sales on the table, or on the black market. California Cannabis Manufacturers Association estimates the black market outnumbers the legal market by a figure of five to one.
Nevada just isn't having those same problems. Contrary to trends in other recreational markets across the United States, for instance, the fair market wholesale per-pound price received for marijuana growers has jumped more than $650 from July 2017 to July 2018, for an increase of 30%.
NEVADA CANNABIS DEVELOPMENTS
Aurora Cannabis (TSX: ACB) (OTCQX: ACBFF) - While not one of the company's larger deals, Aurora Cannabis made an entry into Nevada through an acquisition of CannaRoyalty's exclusive license to Wagner Dima's innovative cannabis pre-roll technology for $7 million. The privately-owned Wagner Dimas is based in Nevada, and gained the cannabis giant's interest by mass producing cannabis rolls and cones. The Nevada company produced 5 million rolls and cones last year. The move indicated that Aurora will be moving to produce pre-rolled products soon, which aren't currently offered among the company's line that includes whole-flower cannabis, milled cannabis, cannabis oils, and vaporizers.
Golden Leaf Holdings Ltd. (OTCQB: GLDFF) (CSE: GLH) - Oregon-based Golden Leaf Holdings is working on expansion within the USA into multiple markets. Most recently the company made acquisitions in Nevada and California, believing it is in a position to take advantage of the presumption that the US is trailing Canada in cannabis market valuation. Earlier in July, Golden Leaf introduced new cannabis concentrate product lines in Nevada through its Greenpoint Nevada subsidiary. The products included its Golden Tinctures, Golden Private Stash distillate vape cartridges, and Golden CBD product lines.
MedMen Enterprises (OTCQB: MMNFF) (CSE: MMEN) - Not wanting to miss out on the showbiz flair of the city, MedMen opened its first branded cannabis retail store in Las Vegas. Launched with red-featured showgirls and an Elvis impersonator to entertain the crowds, MedMen made its Las Vegas store the company's 14th store nationwide, near the Hard Rock Hotel, the Thomas and Mack Center and McCarran International Airport. The company is already constructing another location at the Las Vegas Airport itself. MedMen has received lots of positive support and comments from local politicians upon their arrival in Las Vegas, including from state senators and a city council member.
Terra Tech Corp. (OTCQX: TRTC) - Earlier in July, Terra Tech sold 100% of its assets of its cannabis dispensary located on Western Avenue in Las Vegas to Exhale Brands Nevada for a total consideration of $6.25 million. While the sale appears to have been a sign of departure, Terra Tech retains a significant, focused presence in the Nevada market. Terra Tech continues to operate its Blüm, Desert Inn Road and Blüm, Decatur Boulevard dispensaries, both of which are located in Las Vegas, as well as its Blüm Reno dispensary, in Northwest Nevada. The company also recently opened a new 30,000 sq ft cultivation facility in Sparks, Nevada, while also awaiting approval on a 15,000 sq ft extraction lab in Reno, Nevada, both of which Terra Tech owns 50%.
C21 Investments Inc. (CSE: CXXI) (OTC: CXXIF) - By acquiring Nevada's first medical dispensary that opened in 2014, C21 Investments made a big splash in the state earlier in July. Based out of Sparks, Nevada, the previously privately-owned business, Silver State Relief, was a significant chess piece in C21's strategy to make an early impact through established revenue channels. Already, Silver State is alleged to be one of Nevada's top three revenue-producing dispensaries. The acquisition fits within C21's strategy of acquiring dispensaries across the legal states of the USA, which now include Oregon and Nevada. Among Silver State's assets are 155,000 sq ft of grow space, and multiple dispensaries either already opened or expected to open later this year.
THE APPEAL OF SILVER STATE REVENUES
When C21 Investments Inc. (CSE:CXXI) (OTC:CXXIF) acquired privately-owned Silver State Relief LLC and Silver State Cultivation LLC for $20 million, the company was setting itself up to make a major splash in Nevada. The acquisition was the first transaction in a larger plan by C21's expansion into the US cannabis industry.
The Silver State acquisition immediately puts C21 into revenue generation mode, as the companies and their vertically-integrated assets already bring in annual revenues of $37.5 million CAD.
"Our entire C21 leadership is very excited to enter the Nevada market and looks forward to working with our new partners at Silver State," said President and CEO of C21 Robert Cheney in the company's coinciding news release. "This represents our first acquisition of an established and profitable, vertically integrated business with strong potential for significant expansion on all levels, and is aligned with C21's long term growth objectives."
In 2017, Silver State reported $17 million in revenue. During in the first six months of this year, the company has already hit $15 million in revenue. Much of this growth can be attributed to Nevada's overall cannabis market acceptance and maturation. However, there's still plenty of blue sky ahead as well.
C21 not only acquired Silver State's 155,000 sq ft grow space and 8,000 sq ft dispensary in Sparks, Nevada, but there's yet another dispensary in Fernley, Nevada expected to open later this year. With the addition of the Fernley location, Silver State's revenues over the next 18 months are expected to double-further sweetening the acquisition for C21's investors.
C21 is expanding its US footprint in other markets, including Oregon, however as part of the Silver State acquisition's terms, the company also has committed to expanding Silver State's footprint within Nevada.
The C21 strategy as laid out to Silver State General Manager Aron Swan, ahead of the transaction, is to become the largest publicly-traded cannabis company in the world, by purchasing dispensaries all across the USA. By sidling up to a group such as C21, the move facilitates Silver State to grow much faster within Nevada, and be a part of something much bigger.
"This is a tough business. Investment capital allows us to expand a little more quickly, rather than organically," said Swan to the Reno Gazette Journal.
C21 recently completed another financing that should allow the company to pursue more strategic acquisitions in the near term. Adding significant revenue-generating businesses such as Silver State will only serve to help the company accelerate its acquisition goals both within Nevada, and in other US markets.
To read more about C21, please visit: http://usanewsgroup.com/2018/07/17/the-one-sector-that-will-make-fang-investors-envious/
USA News Group
Legal Disclaimer/Disclosure: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has been paid a fee for C21 Investments, Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares of C21 Investments, Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of C21 Investments, Inc. which were purchased as a part of a private placement that was entered into on June 28, 2018. MIQ will not buy or sell shares of C21 Investments, Inc. for a minimum of 72 hours of the above mentioned date, but reserve the right to buy and sell, and will buy and sell shares of C21 Investments, Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
DISCLAIMER: USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact Information: FN Media Group, LLC Media Contact e-mail: firstname.lastname@example.org U.S. Phone: +1(954)345-0611
SOURCE USA News Group
Subscribe to our Free Newsletters!