A market with explosive growth
There are 30 states where marijuana has been legalized. Based on growth in 2016, the legal marijuana market is now forecast to reach $22.8 billion in 2020. e State of Legal Marijuana Markets Report estimates that this market will expand at a compound annual growth rate (CAGR) of 31%. is makes the legal marijuana industry one of the fastest growing sectors in the U.S. economy.
THE EXPLOSIVE GROWTH
OF LEGAL ADULT USE
AND MEDICAL MARIJUANA MARKETS
Adult Use Sales
States where recreational
marijuana is legal
Marijuana is legal recreationally
|Alaska||21||Legal||Feb 24, 2015|
|California||21||Legal||Jan 1, 2018|
|Colorado||21||Legal||Nov 6, 2012|
|Illiniois||21||Legal||Jan 1, 2020|
|Nevada||21||Legal||Jul 1, 2017|
|Oregon||21||Legal||Jan 1, 2015|
|Vermont||21||Legal||Jan 11, 2018|
|Washington||21||Legal||Jan 1, 2012|
|Washington D.C.||21||Legal||Nov, 2014|
- 1Massive market: no single operator can shock the market
- a) 25% of the U.S. legal sales market
- 2Extremely fragmented: average players are very small with much higher cost structures
- a) 2,900 growers with average canopy of 15k sq. ft.
- 3The black market is surrendering share, exacerbated by COVID-19
- 4Increasing regulatory burden is adding pressure to sub-scale operators
- a) 85% of licensed canopy is provisional, at real risk with CEQA licensing requirements
- b) METRC implementation adding burdens for smaller operators requirements
- 5California: it’s the long-term home of cannabis cultivation in America, perhaps the world
The result: the largest cannabis market in the world
California Cannabis Market
By 2022, cannabis market in California is projected to jump to $7.7 BILLION
– boosted signicantly by California’s recreational cannabis market that opened for business in 2018.
proportion to overall category sales. Medical cannabis sales are expected to decline down to $600 million as people migrate toward
the recreational market to avoid medical cannabis ID fees.
Limited license markets vs. California
The Typical Limited License Market
- 10-20 market players
- All participants are well financed and share similar cost structures
The Myth: Oversupply is unlikely but in the event of oversupply, participants will implicitly or explicitly agree to keep prices artificially elevated for the greater collective good
The Reality: The supply-side consists of several operators with nearly identical cost structures
- ~2,900 growers with an average canopy size of
15k sq. ft. (1/8th the canopy of WeedGenics)
The Myth: Oversupply is more likely given the low barriers to entry
The Reality: The vast majority of the supply-side is sub-scale with inefficient cost structures
WeedGenics flower: An exceptional value
Why invest with us?
We are a private company. We are not subject to the volatility of stock markets. Our cultivation facilities produce consistent positive cash flow regardless of key indexes / market activity. Restricting the capital investment to $3,750,000 (50% of funds required) for each phase ensures profitability and ease of debt service. We are a transparent Company with revenue disclosures and include revenue reports and aggregate facility data on statements issued monthly.
We are experienced cannabis growers. With systematic laboratory level processes in place, our Las Vegas facility @ 52,000 sq. ft. consistently generates $15MM annual revenue. We have proven methods that will continue throughout the expansion of our new 150,000 sq. ft. facility, increasing revenue to $45MM annually. With exceptionally high margins, the company can offer a greater return on investment to help expedite the expansion objective.
- U.S.A. largest cannabis market worldwide
- Rapidly evolving industry
- California #1 market in U.S.A.
- Focus on niche market audience / Less competition
- Strong financial performance / High profit margins
- Manufacturing to distribution / Control supply chain