- Marijuana Company of America Inc. recently initiated a new push into tetrahydrocannabinol (THC) product development through an LOI with Natural Plant Extract of California
- Analysts predict that California’s cannabis market will reach $5.1 billion in sales this year and $7.7 billion by 2022
- Recreational use marijuana is expected to be the prime driver in the market
During a crucial year for expansion in California’s cannabis market, Marijuana Company of America Inc. (OTCQB: MCOA) is lighting the pathway toward achieving its goal of farm-to-consumer vertical collaboration among its subsidiaries in the cannabis space.
MCOA recently uplisted its trading tier to the OTCQB Venture Marketplace, as well as improving its hempSMART brand presence as cannabidiol (CBD) oils and infused products gain increasing gravitas among the health and wellness community.
This month, the company added a push into the tetrahydrocannabinol (THC) product space by announcing an LOI with Natural Plant Extract of California (“NPE”) and its subsidiary, Northern Lights Distribution, LLC, to establish a joint venture that would operate a California cannabis delivery service named Viva Buds.
“This partnership will enable MCOA to establish itself as a major player in the Cannabis arena,” CEO Donald Steinberg stated in a news release about the agreement (http://cnw.fm/20rIH). “The NPE team has a great deal of industry knowledge and has an industry disruptive business model. This is a huge strategic move for MCOA!”
Although California is more than a year into its legalization of recreational marijuana use, regulatory differences between the state’s local community markets can make getting cannabis products to consumers challenging. At the same time, the ongoing federal view of cannabis as a restricted plant has limited transportation contracts to companies that don’t have federal contracts, leaving the door open to potential competition in the space such as the proposed Viva Buds delivery service.
Data analysts at industry advisory firm Cannabis Business Plan are forecasting a California cannabis market with $7.7 billion in annual sales by 2022, with 61.5 percent of the overall market driven by recreational use marijuana (http://cnw.fm/CH5ar). Researchers at BDS Analytics predict that sales of cannabis will hit $5.1 billion in California this year due to the fast-moving nature of what is one of the largest cannabis markets in the world (http://cnw.fm/N0kW7). California tax and fee regulators are already celebrating the nearly $350 million in sales and excise tax receipts brought in during the first year of recreational marijuana legalization in the state, even though expectations had been for almost double that amount (http://cnw.fm/loY4A).
Marijuana Company of America has seen its expectations for a cannabis boom enhanced by regulatory changes in the United States, such as the passage of the 2018 Farm Bill just ahead of year’s end, which allowed hemp to be classified as an agricultural product and paved the way for it to become a farm commodity largely free of drug schedule restrictions, even though components of the plant used for medicinal purposes still have to abide by Food and Drug Administration standards to be approved (http://cnw.fm/Iu0yF).
For more information, visit the company’s website at www.MarijuanaCompanyofAmerica.com
NOTE TO INVESTORS: The latest news and updates relating to MCOA are available in the company’s newsroom at http://cnw.fm/MCOA
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