International Players Aid in the Cannabis Market's Expansion
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apital investments in the cannabis industry reached USD 10.4 Billion in 2010, which is a 40pc increase from 2018.
Yet, according to Marijuana Business Daily, the previously hot investment activity has cooled in recent months and is now running at what one analyst called a more normal pace of growth.
This strong growth in investments can be explained by analyzing several recent developments which suggest that the cannabis industry is constantly growing around the world. For example, Australian health regulators expect the number of medical cannabis prescriptions to climb to at least 70,000 in 2020, which is more than double the 30,000 approvals through the end of 2019. Additionally, Germany imported 6,714 kilograms (14,802 pounds) of medical cannabis flower, primarily for pharmacy dispensing in 2019, according to fresh data from the nation's medical regulatory agency. That is more than double of the total for 2018, when about 3 metric tons were imported. In the United States, expectations are high for several states to expand their medical cannabis programs this year through new laws or regulatory policies, opening the door to additional business licenses as well as more sales for existing cannabis operators and new business. And, the global cannabis market size was USD 10.60 Billion in 2018 while it is projected to reach USD 97.35 Billion by the end of 2026 while exhibiting a CAGR of 32.9296 in the forecast period 2019 to 2026, according to Fortune Business Insights. Global Payout, Inc. (OTC GOHE), HEXO Corp. (NYSE HEXO), iAnthus Capital Holdings, Inc. (OTC ITHUF), Planet 13 Holdings Inc. (OTC PLNHF), KushCo Holdings, Inc. (OTC KSHB).
However, despite the projected growth and legalization efforts, the problem of the illegal market still remains, as many consumers still tend to purchase their products from illegal vendors. In particular, one year after Canada fully legalized cannabis, 60% of Canadians still obtained their products from black market dealers or sources that were not entirely legal. However, the percentage has steadily fallen since Canada legalized cannabis back in October 2018. Currently, consumers purchase their products from the black market because it is typically much cheaper than obtaining goods from legal vendors. When it comes to retail, consumers will always pay more for premium-quality products. In the cannabis industry, that means top-shelf genetics cultivated in small batches will fetch higher prices, said Anne Forkutza, former Vice President of Strategic Partnerships and Brand Officer at Cova Software. Another problem is lack of accessibility. For example, Marijuana Business Daily reported earlier this month that Massachusetts regulators approved a business license for the first recreational cannabis store in Boston, years after the state voted Massachusetts voters passed a ballot initiative (Question 4) making recreational cannabis legal in the state.
Global Payout, Inc. (OTC GOHE), recently changed its name to Global Trac Solutions, Inc., announced yesterday that, as part of a larger effort to restructure and diversify the Company, its subsidiary company MTrac has extended its business initiatives to highlight its strength in sales and marketing, transforming it into a true marketplace for high risk industries.
'MTrac has evolved. Having been in the cannabis sector, specifically in payment processing, we quickly became recognized by our industry peers as the go-to company for resources in banking, payments, software, insurance, POS, government relations, and more. Over time the value of our network has become readily apparent, as our group has been well vetted, compliant, and a resource for the financially underserved. It is through this network that we have decided to diversify outside of the payment space and really become a marketplace for strategic partnerships and total package solutions for the cannabis industry and other high-risk spaces,' said Global Trac Solutions CEO, Vanessa Luna. 'We have improved our banking bandwidth and have new software integration partners, in addition to strategic alliances on the horizons. We will continue to receive revenue from payment processing through third party partnerships and referrals however, going forward this will not be the sole focus of our business model. We will also be expanding our reach to include ancillary services and expect to realize revenue from those relationships as well. This move comes from years of experience working in the cannabis industry and other high-risk market sectors. Diversification is key for survival, and we are confident in our directional shift.'
We will keep shareholders apprised of the ongoing efforts to diversify our subsidiary and plan to effectively utilize our network to realize all future revenue potential.
Please feel free to visit our newly designed website at www.mtractech.com.
✔️ International Players Aid in the Cannabis Market's Expansion
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