en_GB
en_GB de_DE_formal nl_NL_formal pl_PL

New cultivator requirements

  • being a licensed holder in a regulated jurisdiction

  • land and the construction of the appropriate supporting infrastructure (heat, light, power, security etc)

  • a clear phased approach on product ,price, cultivation and distribution – grow materials, clones and seeds and other operating expenses to ensure that product is grown and harvested to high quality and on-time

  • an understanding of the market and competition and the capability to evolve the product as market needs mature

  • having certainty on production with the optimum facilities that can scale (such as a grow room) and with a quick time to market

  • experienced growers

  • the right product mix (in addition to the certainty of) to ensure initially, full distribution and establishment of the operation. For example – initially partnering with Grandaddy Purple and then introducing variants and different products/strains at different price points when the business is established and can scale

  • ensuring compliance with state regulations

  • establishment of strong relationships with dispensaries

  • creation of a brand presence; and building and maintaining high performing teams to support the growers

  • access to initial investment to provide the initial set up requirements and support the later phases on scaling when the initial business model is proven; and

  • strong business planning and operational management expertise

Why USA?

The jurisdictional legalisation of cannabis for medical and non –medical purposes is accelerating globally

This regulatory liberalisation of cannabis is driving an expansion of the global cannabis market through increasing demand (social acceptance) and more jurisdictions For the purpose of this deck, we will focus on the US market which is where the two current live investment opportunities reside.

As the United States’ largest cash crop and a pervasive and ineradicable part of the national economy, cannabis sales are projected to top $30 billion by 2025 assuming a compound annual growth rate of 14%. [New Frontier Data estimates].

  • As of April 2022, 18 states, Washington D.C and Guam have legalised the use of cannabis (in addition to medical marijuana) for individuals over age 21. Medical cannabis is now legal in 37 US states plus Washington D.C. 9 more states are planning to take cannabis legislation to the polls this year
  • 44% of all Americans now live in states with access to legal recreational cannabis
  • As the industry matures, we’re seeing significantly less time from when medical cannabis is first legalized, to the first recreational sale. According to [Marijuana Business Daily] California took 7,308 days from medical to recreational to the state’s first sale. Massachusetts took just 1,463 days. An acceleration of legalization and then time to market
  • New York State legalized cannabis in 2021 and the licensing and compliance process is in progress with licenses to be granted in late 2022 (investment opportunity outlined later)
  • Indian Reservations can legally grow cannabis (investment opportunity outlined later)
  • Although market size projections vary, Wall Street suspects the US industry will scale significantly, projecting its value to reach $100 Billion. With increasing consumer demand and new legal markets opening up every year, what is clear is that this is a growth and developing industry sector

Head office

Links