Support for proposition 64 is trending high. Many organizations are chalking out plans to get in marijuana industry. Marijuana investors believe that it would definitely support economy. They are saying it will create jobs and ensure public safety.
A Poll recently revealed that 58% voters are in favor of marijuana Legalization. Final results will confirm it today for marijuana investors to begin with. They are planning to commence with marijuana legalization.
INVESTORS SHOW SUPPORT FOR PROP. 64
“The support has been enormous,” said Steve Gormley, Founder and CEO of Seventh Point LLC, a Los Angeles-based private equity fund. He declared that they along with marijuana investors are trying for the acquisition of legal and compliant cannabis industry assets in Los Angeles County. “We’re focused on distribution through dispensaries and opportunities for manufacturing through cultivation. Over the past 18 months a number of more traditional investors have come off the sidelines for what we feel will evolve as a historic industry.”
However, Gormley wouldn’t name the investors, as the fund is a private investment vehicle. Rather he said they are investing into many areas. So, he believes it will lift up the industry.
“It’s things like dispensary licenses, dispensary businesses, cultivation build outs, technologies that address inefficiencies in marijuana products, hydroponics, security … a lot of very different verticals,” he further added. “I liken this to what it must have been like to invest in alcohol three to five years before Prohibition was repealed when companies like Seagram’s emerged.”
GENERATE BILLIONS OF DOLLARS IN SALES
For the amazement of Marijuana Investors latest data estimates are showing a hike of $7.6 billion a year in direct sales to consumers by 2020.
New Frontier’s executive vice president of industry analytics, John Kagia said “That also doesn’t include sales of cannabis products like T-shirts and bongs,”
Seventh Point plans to commence buying properties in Los Angeles. Their purpose is to build out cultivation centers for each acquired dispensary so that they can stay active as managers and owners while Their goal is to deploy $75 million to $100 million over the next 24 to 36 months.
L.A. BASIN SEEN AS SILICON VALLEY OF POT USE
According to Gormley, “California is the most important and nascent market for marijuana use”. Furthermore he added “Twenty-five states have marijuana laws on the books and half of the revenues from that are coming out of California — and half of that comes out of the Los Angeles basin.”
Gormley implies “We believe that the L.A. market will be to marijuana what Silicon Valley is to technology,” he said. “Moving forward, we think this will be as big as Southern California’s entertainment industry. And as L.A. goes … so goes the rest of the country.”
Kagia says California ranks among the top 15 states in the country with respect to cannabis usage rates. Even Illegal marijuana operations in Humboldt, Mendocino and Trinity counties are producing huge revenues.
CREATION OF NEW JOBS
“There will be a lot of new jobs created around professional services in ancillary segments of the market, like accounting, legal services, and security services and testing for quality control,” Kagia stated. “The state has had 20 years to grapple with medical marijuana as it makes the transition into legal use for adults.”
Nate Bradley, executive director of the Sacramento-based California Cannabis Industry Association, said it is high time for marijuana legalization.
“We want to see the industry pulled out of the underground market and into the light with a regulated market,” he said. “We believe it will be a huge boon to public safety and to the economies of local cities and counties.”
SOME MARIJUANA INVESTORS WILL REMAIN UNDERGROUND
Kagia stated that some pot growers will choose to remain underground. Because, they will hesitate to pay fees. They will also resist with environmental regulations and specific land-use mandates. However, most of the dealers are waiting for transaction.
“The cost of being compliant will be a challenge for existing operators,” he said. “But we spent some time in California and met with some growers up north who are deeply invested in making the transition and doing it right. But it’s certainly not all of them.”
POT CAUSES FEWER PROBLEMS THAN ALCOHOL
Bradley, who previously was president of a medical cannabis consulting firm and also a city police officer, deputy sheriff and criminal defense investigator, said marijuana will be the source of far fewer problems than alcohol.
“When I was a police officer we never took one domestic violence case that was related to cannabis,” he said furthermore “They were 100 percent related to alcohol use.”
Up to 1 ounce of marijuana or 8 grams concentrate at one time will allowed to adults. Commercial retailers and manufacturers have to get license for cultivation of marijuana. Near schools or child care centers dealers are forbidden to operate. State will apply 15% sales tax . Additional local taxes might not be levied on that.