U.S. cannabis sales are expected to continue seeing exponential growth throughout the next decade, as more states legalize recreational use. According to a report from Hexa Research, the U.S. medical cannabis market size was valued at $5.44 billion in 2016 and is expected to be worth just short of $20 billion by 2024. However, these figures only take into consideration the 28 states that allow cannabis use for medical purposes. Considering the massive success and sales growth of legal cannabis that has been seen in Colorado and Washington, the combined medical and legal cannabis industry market value could be even more massive.
In 2018, California, Maine, and Massachusetts will all begin legal sales of cannabis. This means that by the end of next year, about 20% of Americans will be living in a state where is it legal to consume cannabis for recreational purposes. According to Bloomberg, the addition of these three states could “triple the size of the legal pot market.”
As Americans continue to see growing demand for medical and recreational cannabis, here are three stocks that could benefit from the industry’s surge:
Bayport International Holdings, Inc. (OTC Pink: BAYP): The cannabis technology company finalized a major strategic partnership with GreenLink Financial LLC, a specialty financial services provider that works within highly-regulated banking businesses. Through the strategic partnership, GreenLink Financial will provide its full suite of financial products to Bayport International’s clients. The financial services will be seamlessly integrated into Bayport International’s platform ecosystem. This will allow Bayport’s clients to have access to FinCEN-registered banking services, electronic payment & processing, and specialty lending.
Bayport International Holdings, Inc. also recently announced it is working on a new platform initiative to complement its current asset, Weedwiser.com. Management continues to focus on diversifying throughout other areas of the cannabis technology industry in order to create economies of scale and “cross selling” opportunities between its businesses.
“The Cannabis industry is in ‘Land Grab’ phase,” details Bayport CEO, Clay Franks. “There are thousands of market participants that are entering the business and learning the ropes — and willing to try anything and everything that helps them grow their business and become more efficient. The more Bayport can do to help these entrepreneurs execute, the more valuable and profitable we will become.”
Overall, Bayport International Holdings, Inc. is an emerging powerhouse within the cannabis technology industry. The company has successfully built the Weedwiser platform, which will continue to receive development upgrades and content. Now that Bayport International Holdings, Inc. has a playbook on successfully creating and launching a cannabis tech platform, the company can continue building its profitable ecosystem.
Sunset Island Group, Inc. (OTCQB: SIGO): The medical cannabis cultivator has made news in recent months for acquiring and building processing centers that will allow the company to expand its production. Sunset Island Group, Inc. maintains a 22,000 square foot facility that has 10,000 square feet of grow space. Furthermore, the company announced it is finalizing its acquisition of an additional 32,000 square feet of grow space. This is all part of management’s phase one expansion goal to reach 152,000 square feet of cannabis grow space.
Sunset Island Group, Inc. recently expanded its product line to include “Pre-Rolls,” which are essentially cannabis cigarettes. Management notes that Pre-Rolls are not only one of the most profitable products sold in dispensaries, but they are also very popular with consumers.
Cannabix Technologies, Inc. (OTC Pink: BLOZF) (CSE: BLO): As legal cannabis sales are predicted to surge, governments are scrambling to prepare for the new potential dangers and issues that could come from greater access to marijuana. Cannabix Technologies, Inc. is working on a solution: cannabis breathalyzer.
In addition the company recently filed a patent for a cannabis ignition interlock device, similar to what is used for people that have been convicted of DUI.
The need to keep the roads safe will be a major priority as more states legalize recreational cannabis. According to a Colorado Department of Transportation survey, 56% of cannabis consumers drove within two hours of consuming the substance. Furthermore, the survey found that consumers driving 11 or more days in a month within hours of ingesting cannabis jumped from 10% in 2014 to 21% in 2016.
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