The California cannabis market has evolved over the past 22 years from a medical-use market to now also include adult-use.

The market is being fueled by an aging population. Baby Boomers and Gen X spend the most on cannabis each month, with each group increasing spending 19 and 13 percent respectively between 2016 and 2017.

Aside from sales generated by the state’s residents, the market is fueled by cannabis tourists. California attracts approximately 273 million visitors each year and tourists spent approximately $1.32 billion in 2017. As the industry continues its growth, it may see similar trends as in Colorado, where tourists spent $98 million in canna-tourism in 2015, one year after legalization.

Following the legalization of its recreational market, one of the primary hurdles California is facing is considerable taxation on cannabis products. Heavy taxation has led to lower revenue projections from sales for the state. Analysts at New Frontier Data are now predicting a revenue of $1.9 billion in 2018 and $4.72 billion in 2025 for the state’s cannabis market.

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) provides the regulatory framework for California’s legal medical and adult-use cannabis market. It operates under a dual licensing structure that is governed by three government branches, each responsible for a different facet of the supply chain.

All cannabis companies need to apply for a local and state license in order to operate, regardless of the license. However, obtaining both licenses can be difficult as each jurisdiction has its own regulations that differ from others. As a result, cultivators are often required to move to jurisdictions that better support their business model.

Another development under MAUCRSA targets distribution. Prior its implementation, cultivators were required to go through independent distributors to transport their products to retailers. Now, small cultivators can directly transport their products to retailers. However, licensed distributors are still a necessary component to the industry as they are the only parties that can coordinate third party product testing for quality assurance, review product labelling and packaging, provide transportation for cannabis-derived products and collecting and remitting cultivation and excise taxes for the state.

The following Visual Capitalist infographic, sponsored by High Hampton Holdings (CSE:HC), will help investors learn more about the California cannabis market:

Click here for INN’s exclusive profile of High Hampton.

Codebase Ventures Inc. (“Codebase” or the “Company”) (CSE:CODE)(FSE:C5B)(OTCQB:BKLLF) announces it has completed a first closing of a non-brokered private placement of up to $2,000,000. The Company accepted subscriptions for 13,740,000 units at a price of $0.05 per unit, for gross proceeds of $687,000. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at $0.075 for a period of two years from the date of closing, subject to the option of the Company to accelerate the expiry date in the event that its shares trade at $0.15 or more for 10 consecutive days

The Company paid $18,000 in cash and issued 160,000 warrants on the same terms as noted above to qualified finders. Securities issued pursuant to this tranche are subject to trading restrictions until April 5, 2021. The Company is expecting to complete the financing by December 16, 2020. Proceeds will be used for working capital and to fund future investments.

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Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”), announces that further to its press release dated December 3, 2020, the TSX Venture Exchange has approved the repricing of 19,405,804 warrants of the Company that were originally issued on July 27, 2018, to $0.10. These warrants are set to expire on December 31, 2020.

For anybody wishing to exercise these Warrants, please contact the Chief Executive Officer, Terry Donnelly at the particulars below.

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Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN), Aurora Cannabis (NYSE: ACB) (TSX: ACB), and HEXO Corp. (NYSE: HEXO)

Cannabis leaders are focusing on innovation in premium branding, global expansion, and tight operational execution in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders:

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TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce that it has closed the 2nd and final tranche of its Unit financing. In connection with the closing, the Company issued 1,356,873 Units at a price of $0.55 per Unit, for gross proceeds of $746,280.15. Each Unit consists of one (1) common share and one (1) warrant. Each warrant entitles the holder to purchase one common share of the Company, at an exercise price of $0.75 per share, for a period of two years from the date of issuance. The warrants are subject to an acceleration right that allows the Company to give notice of an earlier expiry date if the Company’s share price on the CSE (or such other stock exchange the Company’s shares may be trading on) is equal to or greater than $1.25 for a period of 20 consecutive trading days. Finder’s fees of $42,542, 3,200 Finder’s shares and 80,550 Finder’s warrants were issued in connection with finder’s fees payable.

In total, the Company raised gross proceeds of $1,757,180 and issued 3,194,873 Units.

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 Sweet Earth Holdings Corp. (CSE: SE) (FSE: 1KZ1) (OTCQB: SEHCF) (“Sweet Earth” the “Company”) is pleased to announce that it has received full Depository Trust Company (“DTC”) eligibility in the United States. On October 20, 2020, Sweet Earth announced that its shares had been listed on the United States’ Over-The-Counter Bulletin (“OTCQB”) under the ticker SEHCF.

DTC status means that Sweet Earth shares are now eligible to be transferred between brokerage accounts within the United States and significantly augments the ease in which American-based investors are able to trade Sweet Earth shares.

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