Connect with us

Business

GREEN RUSH

Published

on

la-localnewsAs one of the largest economies in all the world, the state of California made international news when voters passed Proposition 64 on November 8, permitting recreational cannabis for adults ages 21-and-over. Now projections for a bigger and brighter future for The Golden State have been pointing to astronomical numbers for cannabis business investors.

In a special Election Day update, Arcview Market Research along with New Frontier Data shared projections for the adult use cannabis market in California. The data showed that now that Proposition 64 has passed in California, there is a projected $4.1 billion added to their 2020 market forecast. This means that cannabis for adult-use and medical use in legal states could potentially generate a whopping $7.6 billion by 2020.

According to a release by Marketwired, Arcview’s Chief Executive Officer Troy Dayton shared his thoughts on the future. “This is the vote heard ’round the world. The other states that have passed legalization are like pilot studies compared to the seismic shift in the market that legalizing marijuana in the sixth largest economy in the world will cause,” Dayton said. “There is nothing more powerful than an idea whose time has come. This is marijuana’s moment.”

“Up until now it has been highly speculative and risky. As such, I see more and more investors coming in from other markets and even more these investors will not likely want to be in the shadows.”

New Frontier Data Founder and Chief Executive Officer, Giadha DeCarcer, also shared how California will be a much more powerful market than any recreational market that has come before. “With the passage of adult use in California, the state has become the new epicenter of the legal cannabis industry. As both the oldest medical cannabis state and the largest cannabis consumer population, sales in California are projected to dwarf those of any other market,” DeCarcer said. “Additionally, the integration of California’s technology and marketing expertise will be enormously into the cannabis industry both domestically and internationally,”

Meital Manzuri is an experienced attorney who specializes in cannabis law and is based out of Beverly Hills. Manzuri shared insight with CULTURE on how more investors will come on board as local communities begin permitting cannabis businesses. “As January 1, 2018 nears, we will see more local governments issue licenses. A local government license is the ‘bulletproof’ protection most investors look for,” Manzuri said. “Up until now it has been highly speculative and risky. As such, I see more and more investors coming in from other markets, and even more, these investors will not likely want to be in the shadows.”

There are already large investment firms in California that are gearing up for recreational cannabis licensing to start rolling out. Seventh Point LLC is an investment firm has been very upfront about its mission in California. According to the company’s website, “Seventh Point is working to acquire a majority share of legal cannabis assets in Los Angeles, California.” Seventh Point aims to achieve and secure a market-dominant position with legal cannabis through the acquisition of “compliant cannabis” businesses. The statement continues to explain these assets include brands, cultivation centers, collectives, intellectual property and technologies.

In addition to the various avenues of the legal cannabis industry to invest into, one new investment opportunity that will also be significant will be cannabis cafés, as Prop. 64 permits public consumption of cannabis in licensed locations. Overall, adult-use of cannabis will further strengthen California’s economy.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *