PALM BEACH, Florida, July 17, 2018 /PRNewswire/ --
FN Media Group Presents Marijuanastox.com Market Commentary
The marijuana market has seen some big changes this year. For example, Canada just passed Bill C-45 (the Cannabis Act), which could add up to $5 billion in annual sales to a budding industry. Even California, which legalized its use in early 2018, could see sales of more than $7.7 billion in the next three years, according to analysts at Arcview Market Research. That could provide significant revenue to legitimate cannabis players include High Hampton Holdings Corporation (CSE: HC) (OTC: HHPHF), CannaRoyalty Corporation, CannTrust Holdings (TSX: TRST) (OTC: CNTTF), Canopy Growth (NYSE: CGC), Aurora Cannabis (TSX: ACB) (OTC: ACBFF) and MedReleaf Corporation (TSX: LEAF) (OTC: MEDFF).
In fact, with sizable growth in store for California's massive cannabis market, investors have been increasingly attracted to companies with big exposure to the state, including High Hampton Holdings, which is acquired 420 Realty LLC, which has multiple permits near the Greater Los Angeles area.
California Legal Marijuana Attracting Big Business
Months after California legalized recreational marijuana, BDS Analytics estimates that sales could hit $3.7 billion by the end of 2018, as reported by Business Insider, predicting that number will reach $5.1 billion by 2019. Analysts at Arcview Market Research believe that number could reach $7.7 billion by 2021. It's no surprise then that many top companies are seeking a piece of the California market.
CannaRoyalty Corporation is just one of a growing number of larger companies that are increasing their share of that growth market for example. The company recently acquired RVR, a large-scale distributor of both medical and recreational cannabis, Alta Supply, a smaller medical marijuana company, and Kaya Management, an edibles and vaporizer producer. In April 2018, it also acquired Flora-Cal Farms, a licensed ultra-premium cannabis producer.
MadMen Enterprises recently broke ground on a high-tech cannabis factory in Desert Hot Springs, California, the company's second large-scale marijuana cultivation and manufacturing facility, reports New Cannabis Ventures. "The Desert Hot Springs facility is scheduled to open in early 2019 and service California's fast-growing adult-use marijuana market."
Even High Hampton Holdings is just beginning to gain momentum, advancing its foothold in California's cannabis market through acquisitions and property development.
High Hampton Holdings' Dominance in California
High Hampton Holdings offers an interesting opportunity in the state's cannabis market, as it actively seeks to consolidate California's cannabis industry through equity, royalty and direct property ownership with licensing agreements. Most recently, the company expanded its cannabis distribution network through the acquisition of 420 Realty LLC, which has multiple permits to vertically integrate in the City of Cudahy, California.
"This transaction further expands High Hampton's strategic cannabis distribution network in California and will ultimately allow us to bring more products and quality brands online as we advance this and our other assets. With the previously announced acquisitions of CaliGold and Bravo Distro expected to close soon, High Hampton will be well positioned with distribution hubs, product and cultivation opportunities across California."
Also, its wholly owned subsidiary, CoachellaGro Corporation, is building a 254,000 sq. ft. greenhouse facility situated in the cannabis industrial park located in Coachella, CA. The subsidiary has secured a Conditional Use Permit for development of a full-service production facility to serve third party state licensed medical marijuana operators and could become a leading cannabis complex in the state.
The company also announced it had entered into a binding agreement with 8 Points Management and its subsidiary Bravo Distro, a fast growing California cannabis distributor, to acquire 100% of all issued and outstanding shares of both 8 Points and Bravo. The deal will provide High Hampton Holdings with immediate access to a major distribution hub in Sacramento, California.
"Securing distribution is a crucial if not the most important component of a successful business model for the California cannabis market," says CEO Argudo. "In 8 Points Management we have found a well-positioned operator that offers a full-service distribution model for our industry that will help us establish access to major distribution hubs in strategic locations throughout California including a prominent location in West Sacramento. Their team is renowned for already starting and operating another highly successful cannabis distribution outlet, and together, we are poised to succeed in building a leading cannabis distributor in California."
With a market cap of $52.7 million, investors are increasingly attracted to the company, especially with several catalysts for growth, including the Coachella property and the recent acquisitions of 420 Realty LLC and 8 Points Management. It appears the company is in the early stages of actively consolidating California's growing cannabis market to increase its value.
Other Companies Active in the Market Include:
CannaRoyalty Corporation is a private equity firm specializing in acquisitions. The firm invests in the legal cannabis sector with a focus on research and intellectual property, consumer brands, and industry infrastructure with a strong focus on California, one of the world's largest cannabis markets.
CannTrust Holdings (TSX: TRST) (OTC: CNTTF) produces and distributes pharmaceutical grade medical cannabis products in Canada. It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner.
Canopy Growth (NYSE: CGC) through its subsidiaries, produces and sells medical marijuana in Canada. The company offers dried, oil, and soft gel cannabis products. Canopy Growth Corporation also sells its products through online.
Aurora Cannabis (TSX: ACB) (OTCQX: ACBFF) produces and distributes medical marijuana products in Canada. The company's products consist of dried cannabis and cannabis oil. It also operates as a pharmaceutical wholesaler and narcotics dealer of medical marijuana in Germany and the European Union; and produces and sells proprietary systems for the indoor cultivation of cannabis, organic microgreens, vegetables, and herbs. In addition, the company provides counseling and outreach service to help patients learn about how to safely and effectively use medical cannabis; select a strain from the available in Canada; and register with their choice of licensed producer.
MedReleaf Corporation (TSX: LEAF) (OTCPK: MEDFF) produces and sells cannabis-based pharmaceutical products in Canada. It offers dried cannabis, cannabis oils, and cannabis oil capsules; and various accessories, including grinders, vaporizers, and lockable containers.
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