Currently, twenty-two states and the District of Columbia allow its citizens to use medical marijuana. Additionally, voters in the states of Colorado, Washington, Alaska and Oregon approved ballot measures to legalize cannabis for adult use. It is expected that the states that have allowed its citizens to use medical marijuana will evolve over the very near future to legalize cannabis use by all of their adult citizens. And those numbers are expected to grow dramatically. Over the next two years, ArcView Market Research expects ballot initiatives to legalize adult use of marijuana to pass in 8 states including California, Nevada, Florida, and Rhode Island. Maryland, New York, and Minnesota are expected to finalize adult use legislation by the end of 2016. The addition of California alone will more than double the size of the legal marijuana market.
"FOR NOW, MASS CANNABIS PRODUCTION IS LARGELY POPULATED BY MOM-AND-POP OWNERSHIP THAT IS NOT AS VIGOROUS AS THEY COULD BE BECAUSE MARIJUANA REMAINS ILLEGAL UNDER FEDERAL LAW. BUT WORKING WITHIN STATE GUIDELINES, ENTREPRENEURS ARE MOVING FORWARD WITH AMBITIOUS CANNABIS BUSINESS STRATEGIES."
The current group of retail and cannabis production companies see the potential for big sales and profits, especially if they can transition their mom- and-pop to a more mid-sized businesses, and subsequently the mid-sized businesses can transition to large, national brands.
It is clear that Marijuana is going to be the next big industry to emerge in the United States over the next five years. And the founders of STRAINWISE® believe the Company is strategically positioned to be one of the national leaders in the marijuana industry from a branding and consulting perspective.
As the industry leader in the state of Colorado, the founders of STRAINWISE® have branded and support eight (8) recreational marijuana dispensaries, two (2) medical marijuana dispensaries and approximately 123,000 square feet of sophisticated and efficient product cultivation capacity.
We plan to open five (5) new, branded stores in Colorado over the next year and an additional five (5) branded stores in the following year. Additionally, we expect to be adding five (5) new branded stores, located within Tribal owned casinos located on sovereign reservations in several states. One of these stores will be located within 30 miles of Chicago, Illinois.
We are currently negotiating for licenses to operate in the states of New York, Maryland, Illinois and California. We anticipate a total of thirteen (13) medical marijuana dispensaries and cultivation facilities if we are successful in obtaining licenses in these states.
STRAINWISE® intends to open in every new legal market in the United States, as soon as it is feasible to do so. Our national presence, coupled with our highly regarded branded strains of marijuana, will assure us of a growing national customer base, providing us with a loyal consumer base spread across the country who know our brand.
The founders of STRAINWISE® are aware that the vast majority of medical and recreational marijuana retail outlets are owned and managed on a mom-and-pop basis, by operators that sorely need many fulfillment and branding services. Such services are presently beyond the reach (both financially and operationally) for a large majority of retail owners. Such mom-and-pop owners do not have sufficient economies of scale, nor the levels of management sophistication and background to enable them to fully leverage their business opportunity within the marijuana industry.
The financial dimensions and management capacity of STRAINWISE® affords the Company with the resources to provide a multitude of fulfillment and branding services to its current branded stores, as well as, to make such services available on a national basis to all operators engaged in the cannabis industry.
Presently, the fulfillment and branding services that STRAINWISE® provides is, as follows:
Long and short-term receivables financing and funds for expansion of operations and acquisition of additional retail facilities
Bulk procurement of crop nutrients on a co-op, high volume basis to obtain price point volume discounts
Use of the STRAINWISE® logo and images
Marketing and advertising programs
Vendor contracting and management
Accounts payable processing
General accounting and financial statement preparation and reporting
Installation of general ledger and accounting systems
Implementation of internal controls over financial reporting and asset safeguards
Procurement, placement and onsite management of ATM systems
Cash collection security and processing
Grow facility management
Management of inventory to approximate just-in-time capacity levels
Point-of-sale software and procedures implementation
Multi-location product distribution and control
Regulatory compliance filings reporting
State and municipal sales tax preparation and filing
State and Federal income tax preparation
General business consulting
Exit strategy planning