Creating a Winning Cannabis Business Licensing Application Strategy

Cannabis legalization is happening at lightning speed, and multiple states are currently, or soon will be, accepting applications. Most of these states have merit-based application and lotteries, as the number of licenses are limited with numerous applicants.  Many of these applications are well-funded by investors, or have partnered up with existing cannabis businesses, or are existing cannabis businesses expanding into other states. This makes the licensing process very competitive, expensive, and time consuming.  Also, many license application fees are non-refundable, meaning that developing a winning strategy from the beginning is critical.  It can be a very stressful process, but there are ways to mitigate the stress while creating a winning strategy.

Deciding to apply for a license for a cannabis business is a major decision that takes a significant amount of time and resources.  Oftentimes, first time cannabis business license applicants are caught off guard with the amount of manpower, money and time involved in applying for a cannabis business license.  The regulatory framework for licensing is arduous by design. The State agencies want to see the best, well prepared, well capitalized applicants move forward reducing the likelihood of failure.  This means that applicants must be well capitalized and staffed early in the process to show the most likelihood of success after being awarded a license.

Merited applications are often broken down into two sections, one that is pass/fail and one that is graded on a point system.  Those that do not meet the pass/fail requirements are immediately discarded and almost always include basic requirements like background checks, capitalization reports, and real estate requirements.  The graded sections are based on operational procedures and other varying requirements, such as diversity and community impact plans. Graders are very specific in what they are looking for, and it is not always what people may assume and requires a high degree of technical knowledge.

Sticker shock is not uncommon for those new to applying for a cannabis license.  It costs a significant amount of money to complete a cannabis application. Total application soft costs can easily exceed $250,000 excluding real estate.  Being well capitalized is not only necessary to fund the application process, it is essential to operate a highly technical, compliance heavy organization.   Also, regulators want to see that after a license has been awarded, the company still needs to have capital reserves to burn while becoming operational as well as enough funding to keep up with frequent, costly regulatory changes. All in all, applicants can expect start-up costs upwards of $2.5M to become operational with state requirements of north of $10M in capital.

Where to begin? First, it’s important to start with a well-developed business strategy, which includes a business plan and pro forma, as well as business formation and supporting documents.  Acquiring real estate is also a critical first step because all plans – operational and business related, are contingent upon having leased or purchased real-estate in a properly zoned area that meets all regulatory requirements. Location and zoning are usually pass/fail and may make or break the application.  Obtaining real estate is a major challenge in highly competitive states due to limited availability because of zoning restrictions, and real estate that is available are at premium costs. Team building for the application development and for the operations are next in executing a well-written cannabis business license application.

Don’t go overboard in elaborating too many irrelevant details, which then looks like over-selling. People grading applications are looking for specific answers, not to be sold. This means creating plans to ensure that the operation will be compliant and safe.  Sections should reference statutes to show an understanding of regulations and a plan to be compliant with those regulations. Compliance is 100% related to survivability once a license is awarded, and it is imperative to show that the organization has operating procedures consistent with states laws.

Many applications require diversity or community impact plans.  These are ways that the applicant will give back to the community by creating diversity programs and community impact plans to show good faith to the community at large.  Diversity plans must be meaningful and action oriented. Leadership, and not just staff or proxy leaders, must be comprised of a diverse team of people from protected groups, minorities women, veterans, LGBTQ and persons with disabilities.  There must be diversity training plans and action plans, such as workforce utilization reports, to show that the company is serious about creating a diverse organization. Diversity should resonate throughout your application including owners (investors), executives and operations staff.

A well-developed and experienced team is critical to success. Regulators are looking for individuals with proven experience in running a cannabis touching business, or similar highly regulated industry like pharmaceutical and banking industries.  It is also an absolute must to have people on your employee and management team with experience cultivating and processing cannabis.  Careful partnering with an existing cannabis business may improve chances of being awarded a license.  Previous licensing awards have shown this to be an effective strategy.

Finally, getting help from a cannabis expert is a critical part of the application process. Things to consider when deciding on who to choose to help you write your application.  First, it really helps to have someone who understands how to operate a compliant cannabis business with industry experience either directly working with the plant or cannabis consultant – very helpful if they have previous experience operating a licensed cannabis business.  When it comes to writing the application and supporting operating plans, it’s best to work directly with the experts with technical and business aptitude who understand how to develop and manage compliant cannabis businesses.

As new states come on board, the process is going to become more competitive as new businesses and existing business vie for limited licensing.  Existing businesses have the experience in negotiating the cannabis licensing process, but that is not to discourage newcomers from entering and being successful in the industry.   It will take a well thought out strategy, great team, capital and hard work to achieve success in winning a cannabis business license.  Being prepared will put you on the path to towards winning that highly coveted cannabis business license.

Source: Larisa Bolivar at TCMS Global

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CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

For more information please visit https://www.CannabisNewsWire.com

The CNW article above contains Third-Party Content articles and other content submitted by third parties, including articles submitted through the CNW Premium Partnership Program. All opinions, statements and representations expressed by such third parties are theirs alone and do not express or represent the views and opinions of CNW or its affiliates and owners. Content created by third parties is the sole responsibility of such third parties, and CNW does not endorse, guarantee or make representations concerning the accuracy and completeness of all third-party content. You acknowledge that by CNW providing you with this internet portal that makes accessible to you the ability to view third-party content through the CNW site, CNW does not undertake any obligation to you as a reader of such content or assume any liability relating to such third-party content. CNW expressly disclaims liability relating to such third-party content. CNW and its members, affiliates, successors, assigns, officers, directors, and partners assume no responsibility or liability that may arise from the third-party content, including, but not limited to, responsibility or liability for claims for defamation, libel, slander, infringement, invasion of privacy and publicity rights, fraud, or misrepresentation, or an private right of action under the federal securities laws of the United States or common law. Notwithstanding the foregoing, CNW reserves the right to remove third-party content at any time in its sole discretion. By viewing this third-party content, you acknowledge that you have viewed, read fully, accepted and agreed to all terms of the Disclaimer at https://www.cannabisnewswire.net/disclaimer.

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Top Traits of Successful Cannabis Entrepreneurs

It’s here, the next boon economy for the United States – cannabis. Whether it’s for medical, nutritional, recreational, agricultural or industrial purposes, cannabis is being legalized rapidly in the United States and across the globe. The first domino has fallen, and now everyone is rushing to participate in, or stop, the next inevitable chain of events: the emergence of an industry that has been prohibited for almost 80 years. I am going to assume the inevitable. The inevitable will be achieved by successful cannabis businesses ran by entrepreneurs that have critical skill-sets and traits to take businesses, and the industry, to the next level.

Still in its infancy, the cannabis industry is experiencing its next stage of growth. It is a startup industry and comes with a unique set of issues because it is emerging from the black market. Like all startups, of which nearly 90% fail, cannabis businesses face tremendous hurdles that no other industry struggles with. Issues like the lack of access to banking and loans, the inability to write off expenses involved in the sale of cannabis and the hesitation of many investors, are keeping cannabis businesses from realizing their full potential. Then there are the horror stories, such as businesses becoming involved in reverse mergers and other complicated financial deals that unfortunately have fallen apart, leaving new entrepreneurs broke and having to start from ground zero.

Having worked in multiple startup environments in multiple emerging industries, first starting in the .com and government contracting worlds, and then moving to the cannabis industry, first as an activist, and then as business executive and policy advisor, I have seen many businesses succeed and fail. There are common threads that lead to failures to launch in multiple business settings, such as bad planning and execution, lack of funding and poor management, however, in addition to bad business practices, an entrepreneur not having the right traits, can also keep a startup from successfully launching.

2016 is going to see a new evolution and maturing of the industry with more people coming over from other more established industries, and it is important for current businesses to stay relevant as newer more sophisticated players enter the game. The following are traits that are paramount for an entrepreneur to achieve success in the cannabis industry:

True Grit: Running a cannabis startup in a startup industry is like sailing uncharted waters fraught with a lot of unknowns and high risks, and is not for the faint hearted. Besides being federally illegal, there are a multitude of other hurdles that cannabis businesses must overcome, including hostility from lawmakers, law enforcement, prohibitionists, and even the industry itself.

Energy: It’s called the green rush for a reason! Hold on fast if you intend on being a part of this fast growing industry and be prepared for long days. We are already into a very busy year for the cannabis industry as more states seek to peak mode and now is the time to catch the wave and keep up. Find healthy ways to keep yourself going because long hours a part of this game.

 Ambition: The rawer the better, but it must be balanced with ethics and integrity. Some businesses make it far without either, but the world in general is changing to hold leaders more accountable, and with growing transparency in a highly connected world, unethical leaders get called-out quickly and topple fast. With that said, without ambition, this industry, well actually any industry, would not exist. Ambition requires the unencumbered desire for success, which is obviously a good thing for ensuring a successful business. Make sure your staff is full of healthy ambition as well. Giving them upward mobility and a sense of ownership will foster that ambition, keep yours ignited, and contribute to the success of your organization.

Resilience: Also known as bounce-back, this one of the most critical factors to success in the cannabis industry. A startup in a startup industry is a roller coaster, to say the least, and you must be able to bounce back quickly from disappointment. There is simply no time for sulking or wallowing in self-pity. Realize that valuable lessons come out of a downturn and let that be your focus while also remembering that a new day brings new opportunities for success.

Perseverance: The ability to push through challenges and set-backs, and the more prepared you are for them, the better chance you will have at success in the cannabis industry. The challenges and set-back can be enormous. Whether its letters from the DEA to your landlords, costly new regulations, crop failures, lawsuits, or any of the other multitude of things that can happen, you must push through. This is why licensing requirements and barrier to entry is so high. Many states require adequate capitalization and access to millions of dollars in liquid assets.

Vision: This is a brand new industry, and while it follows the same economic rules as other industries, this is the chance to let your mind flow and create something new. Many cannabis businesses are socially conscious and run their businesses using the tenets of corporate social responsibility, setting new examples of how businesses can give back to communities, and these businesses are gaining notoriety and awards for their actions, as well as licenses in highly competitive states.

Patience: Don’t rush into anything, whether it’s a financial deal, that fancy new extraction machine or scaling your business too quickly. Do your research on people wanting to invest in your business, as well as to the different investment vehicles available. There are many wolves looking to take advantage of naive and eager entrepreneurs, and are usually fast talkers and will rush you off a cliff if you don’t take the time to research and think things through. Scaling too quickly will exhaust your resources before you have adequately launched your product or service.

Attention to Quality: This applies to products and services. Arguably, the cannabis industry’s first black eye is the recent pesticides violations. Many businesses were busted using unapproved pesticides and possibly poisoning people, resulting in product recalls and the destruction of crops and products. Many businesses lost millions of dollars, and it could have been prevented with more investments in the beginning to create operational best practices and standardization to ensure the best possible environment to encourage strong and healthy plants. On the retail side, a clean and well-appointed shop with a highly–trained and attentive staff will give consumers confidence that they are shopping at a place that places value on quality.

Attention to Detail: This falls into the realm of compliance for licensed cannabis touching businesses. So many well intentioned businesses have had to close shop because they were not following regulations to the letter. Unfortunately, until all of the reefer madness finally subsides, cannabis is going to be regulated like plutonium. Make sure your team is up to date on all regulations on a regular basis, and invest in hiring a compliance manager or retaining the services of compliance specialists to audit your facility and test your employees. It’s cheaper than a $100,000 fine, or losing your license.

Ethics and Integrity: This is an industry emerging from the black market and it is very important to maintain public trust. Many people have realized that the dangers of cannabis have been exaggerated, and that the drug war is an epic failure, however, there are still those who see cannabis as harmful as heroin and businesses must operate with full consideration of all community members and their fears, and operate in a manner that promotes public safety. Paying attention to social corporate responsibility and also being honest will help win hearts and minds as the industry legitimizes and leave businesses less vulnerable to attacks from disgruntled cannabis consumers, employees or community members at-large.

Flexibility: Open-minded leadership is important in today’s business setting, especially in the cannabis industry. Cannabis businesses, especially on the retail side, operate as lateral organizations with employees assuming multiple roles and interacting directly with management. On the manufacturing side, rigid managing may stifle valuable ideas from your staff. Running a startup is a startup industry requires leaders to be open to suggestions from all staff members, and in fact would benefit from encouraging it. Too much flexibility can be detrimental though. Many startups pivot, or change direction, whether trying a new strategy or changing products, to achieve growth. But, but too many changes can be detrimental, and contributes to the reason why nearly 90% of startups fail.

There is so much more to running a cannabis business, and this just covers the most critical skill-sets and traits needed to launch a successful startup in a startup industry. Business practices such as a well put-together team, branding, and developing best-practices, just to name a few, are also important factors for success. Business practices are only a part of running a successful organization though. Honing the aforementioned skills and traits are the first and most critical steps to take when launching a cannabis business, and encompass a very significant part of the foundation of success to take your business to the next level, the level of success, in the new and fast-growing cannabis industry.

Source: Larisa Bolivar at TCMS Global

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CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

For more information please visit https://www.CannabisNewsWire.com

The CNW article above contains Third-Party Content articles and other content submitted by third parties, including articles submitted through the CNW Premium Partnership Program. All opinions, statements and representations expressed by such third parties are theirs alone and do not express or represent the views and opinions of CNW or its affiliates and owners. Content created by third parties is the sole responsibility of such third parties, and CNW does not endorse, guarantee or make representations concerning the accuracy and completeness of all third-party content. You acknowledge that by CNW providing you with this internet portal that makes accessible to you the ability to view third-party content through the CNW site, CNW does not undertake any obligation to you as a reader of such content or assume any liability relating to such third-party content. CNW expressly disclaims liability relating to such third-party content. CNW and its members, affiliates, successors, assigns, officers, directors, and partners assume no responsibility or liability that may arise from the third-party content, including, but not limited to, responsibility or liability for claims for defamation, libel, slander, infringement, invasion of privacy and publicity rights, fraud, or misrepresentation, or an private right of action under the federal securities laws of the United States or common law. Notwithstanding the foregoing, CNW reserves the right to remove third-party content at any time in its sole discretion. By viewing this third-party content, you acknowledge that you have viewed, read fully, accepted and agreed to all terms of the Disclaimer at https://www.cannabisnewswire.net/disclaimer.

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Subsidiary Industries Prepare for Growing Cannabis Market

CannabisNewsWire Editorial Coverage: Impending legislation in Canada is the most recent step in the spread of legal cannabis consumption. As the industry grows, so do the support businesses supplying related services for retailers and consumers. Global Payout, Inc. (GOHE) (GOHE profile) is providing payment systems and business support through its MoneyTrac partnership. MassRoots Retail (OTC: MSRT) is using blockchain to provide a review aggregator and dispensary finder. GB Sciences, Inc. (OTCQB: GBLX) is working in research and design, focusing its efforts on growing more effective strains and exploring better delivery systems. Lexaria Bioscience Corporation (CSE: LXX) (OTCQX: LXRP) is also improving delivery systems through research aimed at improving the effectiveness of orally consumed cannabinoids. And for the cannabis-focused consumer, General Cannabis Corporation (OTCQB: CANN) has set up Chiefton Supply Co, a clothing brand catering to the growing cannabis culture.

Across the board, the cannabis industry is becoming a more diverse and interesting place.

The Broader Potential of Recreational Cannabis

After many months of political maneuvering, this summer will see the legalization of cannabis for recreational use in Canada. It’s a huge step, even in a country where medical cannabis is already widely available. The expanded Canadian cannabis market is expected to be worth between $10 and $20 billion with many companies preparing to take a chunk of the supply and retail business.

That vast market won’t just consist of cannabis growers and retailers. Many other businesses are looking for entry points into the cannabis industry, whether it’s through payment solutions, accessories, technology, or any of the other products and services that businesses and consumers will be looking for. Businesses who get in now won’t just profit from what’s going on in Canada. Dozens of states and the District of Columbia currently have laws broadly legalizing marijuana in some form, and legalization is spreading. The global medical cannabis market alone is expected to reach $55.8 billion by 2025 (http://cnw.fm/2EjPt), so there is a potential for tremendous growth for early cannabis support businesses.

Secure, Straightforward System

Any retail business needs a secure, straightforward system for taking payments. That system needs to be adapted to their particular needs, whether it’s portability for market stalls or strict security for high price transactions. Global Payout, Inc. (GOHE) is providing payment solutions adapted to the special needs of the cannabis market.

The outlet for this project is MoneyTrac Technology, a Global Payout partner. In collaboration with Greenbox, another partner company, MoneyTrac has launched a payment system specifically geared towards the cannabis market, which will make payments easier and more secure.

The need for such a solution stems from the legal status of cannabis in the United States, currently one of the largest legal cannabis markets. Though cannabis is legal for recreational use in six states and for medical use in over twenty more, it is still covered by antidrug legislation at the federal level. U.S. banks are wary of providing payment services to any cannabis company, even a legally recognized one, in case they come under scrutiny for providing finances to support illegal endeavours.

This situation has created unnecessary risks for cannabis merchants because they have had to work on a cash basis, which can create inefficiencies and increase the risk of theft or fraud. Any group that can offer a way out of this trap could draw business from across the states because cannabis vendors know that a better payment system will more than pay for itself.

The Cutting Edge of Technology

A technology and business development company whose motto is “Key to Cashless™,” MoneyTrac is providing a payment solution for cannabis and other high-risk business areas. MoneyTrac is achieving this by using one of the hottest new technologies of the past few years — blockchain computing.

Blockchain is a distributed ledger system in which electronic records are kept over an open network of participants rather than centralized in a single place. Its most famous use is as the foundational technology behind bitcoin and other cryptocurrencies. But it can also be used for other purposes, including supply chain management and smart contracts that automatically deliver their payments on completion.

Through cryptocurrencies, blockchain has allowed payments to take place outside of the conventional banking system. The creators of the technology intended this to remove the stranglehold of banks and governments on personal finance, thereby improving the efficiency and freedom of financial networks. For the cannabis industry, it means a way of making electronic payments without banks being involved, thus escaping cash-based transactions.

In early April 2018, MoneyTrac launched its blockchain payment system, MTRAC. It provides a payment system in which customers put their money in at one end and retailers are able to extract it at the other end. Customers simply charge up a digital wallet at an MTRAC kiosk or load it from their linked bank account or credit card, then use the money to pay for goods at any vendor using the scheme. In fact, the app can be used to generate a digital Visa or MasterCard gift card that can be used at any retailer that accepts those forms of payment. Banks don’t even need to be involved in the cannabis-buying process.

MoneyTrac’s system provides greater security for cannabis businesses and customers. It can also be used to increase business efficiency through the addition of inventory management, payment processing, and seed-to-sale tracking. For customers, it provides a secure, simple way to pay. For merchants, it is a complete way of tracking the flow of goods and money, increasing efficiency through clear, secure, integrated record keeping.

Wide Support Services

In developing an integrated payment solution, MoneyTrac has gained deep insight into the cannabis industry and how it works. It has also developed a team of employees and a network of contacts that allow it to provide wider support services.

The services MoneyTrac offers to clients include business development, sales and marketing, and guidance on compliance. With so many regulations in place around both cannabis and finance, it’s important for those running a cannabis business to understand and strictly adhere to the rules governing them. MoneyTrac can help in this complex area.

These extra services aren’t just a way to make additional income. They help ensure the long-term viability of the MTRAC payment system. If the companies using the systems are well supported, they are more likely to come out on top of the growing cannabis market, making MoneyTrac’s payment solution a crucial part of the industry.

Backed up by the extensive finance and payment experience of the Global Payout team, MoneyTrac offers a secure, efficient payment system for the cannabis sector. By adding other software and services, it is carving out a niche as an important support system in this growing industry.

A Complete Economic Ecosystem

Like so many sectors, cannabis is developing a broader economic ecosystem. A range of companies are stepping up to provide additional products and services related to cannabis.

Like Global Payout, MassRoots Retail (OTC: MSRT) is exploring the potential of blockchain. The company uses blockchain technology to power features in its business portal. The company provides a central hub for reviews of cannabis products and strains, as well as a dispensary finder. These are available through a phone app, making it easier for customers to find the right product and dispensary for them. MassRoots recently revamped the system to introduce new features and incentivize reviews.

Research and development are among the most important support services for the cannabis market. Legalization is making it easier for research to be carried out and the effects of cannabis to be understood. GB Sciences, Inc. (OTCQB: GBLX) works on this side of the market, developing refined cannabis strains that provide a better proportion of active ingredients. It is working with the University of Seville to bring a new time-released cannabinoid formulation to market. As the market grows, so will research into strains, delivery systems and new medical uses, providing more business for companies such as GB Sciences.

Lexaria Bioscience Corporation (CSE: LXX) (OTCQX: LXRP) is another of the companies focused on cannabis research. Its particular focus is on improving the effectiveness and flavor of orally consumed cannabinoids, for which work it has a partnership with the Canadian government’s National Research Council. Oral consumption has great potential to deliver the medical benefits of cannabis without the harmful effects of smoking, and so could be important in unleashing cannabis’s medical potential. With Lexaria’s out-licensing business model, this beneficial technology could be used by many companies, while boosting Lexaria’s research and profits.

General Cannabis Corporation (OTCQB: CANN) is providing a different sort of subsidiary business through Chiefton Supply Co. clothing brand. As cannabis culture spreads and becomes above board, the company is providing distinct, stylish clothes to go with a cannabis-influenced lifestyle. A recently announced distribution deal (http://cnw.fm/LcFR9) with national retailer Tilly’s will see the company reach a wide market.

As cannabis becomes more accessible, companies are finding a wide range of ways to profit from subsidiary services. From T-shirts to payment processing, services for this sector offer incredible potential for business growth and development.

For more information on Global Payout, Inc., please visit Global Payout, Inc. (GOHE).

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

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Cannabis Industry Keeps Making Steps Forward

CannabisNewsWire Editorial Coverage: As legalization spreads, the cannabis industry is achieving a new level of maturity, with a wide range of products and support services. Global Payout, Inc. (OTC: GOHE) (GOHE Profile) is providing payment and consulting services for cannabis companies facing the unique challenges of their sector. Terra Tech Corp. (OTC: TRTC) has developed sustainable farming methods that lead to better yields and lower costs. Surna, Inc. (OTCQB: SRNA) specializes in providing components for growing facilities and advice on how to set them up. Meanwhile, Medical Marijuana, Inc. (OTC: MJNA) and GB Sciences, Inc. (OTCQB: GBLX) are both deploying new techniques to create innovative products for an ever more diverse market.

A Maturing Industry

The legal cannabis industry continues to be one of the fastest growing areas of North America’s economy. The legalization of medical cannabis in Canada and many American states has fostered a thriving medical cannabis industry over the past decade, consisting of everything from pharmaceutical companies to retail specialists. With recreational use now legal in several states and coming to Canada this summer, the industry is set to blossom further. Some estimates state that the Canadian cannabis sector alone could be worth over $20 billion within a few years.

With time and growth, the industry is maturing into something complex and varied. Companies are researching and marketing new goods, from vaporizing oils to soft drinks to community magazines. Other companies are specializing in providing support services to the industry. Whether it’s in finance, marketing, logistics or any of the other services a business needs, cannabis companies face their own unique challenges. A more mature sector is finding ways to adapt these to its specialist needs.

Cash and Cannabis

Global Payout, Inc. (OTC: GOHE) is helping to provide cannabis companies with support in one of the most challenging areas — payment.

Access to financial services has always been difficult for cannabis companies. Though the use and sale of the drug is legal in many states, federal legislation remains the same as when cannabis was targeted as part of the war on drugs. This created a fear of prosecution for banks if they provided financial services to cannabis companies.

From the start, cannabis merchants have found themselves working in a cash economy. This has created inefficiencies and greater than normal risks of fraud, theft and accounting errors. From 2013 to 2017, the Department of Justice’s Operation Chokepoint made this even more difficult, as the government investigated banks that dealt with high-risk sectors for fraud or money laundering.

As a result, cannabis companies have been left in need of alternative payment methods. Global Payout and its partner, MoneyTrac technology, are moving to provide that service.

Global Payout is a provider of financial services solutions with experience in more mainstream industries. Its Global Reserve Platform (GRP) provides an all-in-one system for companies to make payments and money transfers in an international market. The system connects all aspects of a business’s financial operations, from FOREX to prepaid debit cards. Customizable to the needs of different businesses, it provides a complete and flexible end-to-end finance system.

Given the unique circumstances of the cannabis industry, simply adopting this banking-in-a-box system wasn’t going to provide the solution. Therefore, it’s a new product, created by a Global Payout partner, that is allowing the company to apply its expertise to the sector.

New Technology for a New Problem

Global Payout’s solution for the cannabis sector comes from its former subsidiary, MoneyTrac Technology. A technology and business development company whose motto is “Key to Cashless™,” MoneyTrac is focused on providing alternative options for banking and electronic finance.

In its quest to offer payment solutions to the cannabis industry, MoneyTrac has turned to blockchain technology. Blockchain is a distributed ledger system — a form of data keeping where responsibility for the record is shared across a network rather than kept in one place. It’s the technology behind cryptocurrencies such as bitcoin. Through cryptocurrencies, blockchain has become the leading way of transferring value outside of the mainstream banking sector.

Blockchain payments offer cannabis companies several advantages. Such systems can be accessed by any customer, regardless of whether they themselves have a bank account. The money transfers happen away from the banks, which are wary about involvement in cannabis.  Payments are nearly instantaneous, and because records are kept over a distributed network, there are no controllers creating bottlenecks or the risk of a single point of failure.

Launched in early April, MoneyTrac’s MTRAC payment system is powered by GreenBox blockchain technology (http://cnw.fm/GVSh6) and provides a payment system through which cannabis companies can take electronic payments, distancing themselves from the risks and inefficiencies of working with cash. Any customer can use a MoneyTrac kiosk to load up a card or digital wallet, which they can then use to pay for goods and services. Though currently focused on the cannabis market, this option may benefit other companies in high-risk sectors or that want to benefit from the potential of blockchain.

Support Services for a Growing Industry

In addition to financial solutions, MoneyTrac provides a range of support services for cannabis businesses.

Many cannabis retailers are new businesses looking to expand their scope and expertise. The MoneyTrac team have years of knowledge and experience in business development, allowing them to provide advice and support. They can guide clients through the challenges that come with starting and running profitable businesses.

Effective sales and marketing is a challenge for any business, but it can be even more difficult when that business is in a heavily regulated sector such as cannabis. MoneyTrac provides expertise in this area.

Regulatory compliance is a specialist area of knowledge in its own right. Working within the cannabis industry, MoneyTrac professionals have deep knowledge of this area, developed through strategic partnerships across the financial sector. The MoneyTrac team is therefore able to help clients ensure that they meet the legal requirements of their businesses.

Though such support services are already available for most businesses, they all come with their own unique twists where cannabis is concerned. It’s a sign of the growing maturity of the sector — and of its need for specialist expertise — that it can support a company supplying these services. And as the sector grows, so will the businesses providing these vital services.

A Variety of Products and Services

The need for specialist cannabis products has led to the emergence of a number of companies providing ancillary goods and services, as well as specialist products from within cannabis companies.

Terra Tech Corp. (OTC: TRTC) has been developing superior, sustainable farming methods for cannabis. Its moving table hydroponic system increases harvest yields by up to 30% and reduces operational costs by up to 50%. By developing and supplying advanced horticultural equipment, the company is bringing forward the techniques and technology of cannabis cultivation. Thanks to its energy efficient systems and waste water recycling, Terra Tech is ensuring that cannabis growing meets the green credentials many customers look for. Together, these achievements led to record revenues for the company in 2017 (http://cnw.fm/OtFT9).

Surna, Inc. (OTCQB: SRNA) also works to provide better cannabis cultivation. The company manufactures components for cultivation facilities, including climate control, lighting and biosecurity. It also provides the support services needed to make the most of these products. Surna specialists have engineering and installation skills to help clients get their facilities smoothly up and running. Company consultants review floor plans and facility designs, as well as offer guidance on industry standards and best practices. It’s the sort of vital, practical advice that may help get growers off the ground.

The first publicly traded cannabis company in the United States, Medical Marijuana, Inc. (OTC: MJNA) is a leader in medical cannabis sales across the Americas. Selling to countries including the United States, Mexico and Brazil, it is showing the potential for international growth. The company’s expertise lies in research as well as sales, with the development of proprietary techniques (http://cnw.fm/4ueX9) to extra cannabinoid molecules. These techniques are being used to develop a range of products, including hemp-based protein shakes and pet products. Such techniques and products are helping the cannabis industry reach new markets and customers, increasing profits along the way.

GB Sciences, Inc. (OTCQB: GBLX) is also focused on the medical potential of cannabis, while making the most of the opportunities in newly legal recreational markets. The company has developed some of the best cannabis strains in Nevada, identified as such because of their active ingredients. GB Sciences has also obtained an exclusive worldwide license to use a time-released cannabinoid formulation from the University of Seville, bringing a previously unused approach into the American market.

With companies developing new strains and techniques for using cannabis, the cannabis industry has an increasingly diverse range of products. This is supported by a growing range of support services, with companies providing everything from payment solutions to engineering advice, all geared toward cannabis. It’s a reflection of how fast the industry has matured that all this is happening even as the battle for legalization continues around the world.

For more information on Global Payout, Inc., please visit: Global Payout, Inc. (GOHE).

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

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DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Cannabis Industry Leads the Way in Payments Revolution

CannabisNewsWire Editorial Coverage: Financial services are undergoing a period of change as high-risk businesses, often excluded from conventional banking systems, search for alternative ways to process payments. Companies such as Global Payout, Inc. (OTC: GOHE) (GOHE Profile) are providing payment systems for high-risk ventures such as the cannabis industry, saving vendors from the need to operate exclusively on cash. SinglePoint, Inc. (OTCQB: SING) is also working in this sector, while bringing bitcoin payments into the mainstream. MassRoots, Inc. (OTCQB: MSRT) is moving from the cannabis sector into payment processing, adapting its expertise in cannabis tech solutions to provide financial services. Cannabis grower iAnthus Capital Holdings, Inc. (OTCQB: ITHUF) is looking at the wider set of managerial and service solutions that high-risk companies need, and smartphone payment provider Glance Technologies, Inc. (OTCQB: GLNNF) is also moving into the sector through an investment in cannabis sector intelligence and analysis.

The Payment Problem

Recent years have seen high-risk industries facing increasingly tough times in accessing banking and payment services. In the United States, the government-backed Operation Chokepoint discouraged banks from providing services to industries with a high risk of fraud, such as gun sellers and payday lenders. Meanwhile, federal legislation from the war on drugs hampers finance for cannabis businesses in states where the drug has been legalized. Despite the repeal of Operation Chokepoint (http://cnw.fm/Nof7L), the threat of government scrutiny still limits the willingness of banks to provide financial services to these businesses. Even in Canada, which is due to legalize recreational cannabis this summer, banks are only now making tentative steps toward supporting the industry (http://cnw.fm/mE49s)

The cannabis industry is leading the way in finding solutions to this problem. As marijuana legalization spreads across the United States and beyond, a growing industry needs basic financial services; the alternative is to continue in a cash-based economy with the associated risks of fraud, error and theft. Businesses are stepping in to fill the need.

Financial Solutions for a Changing World

Global Payout, Inc. (OTC: GOHE) is among the companies providing solutions for high-risk businesses. Global Payout started out as an innovative supplier of financial services to mainstream businesses. In an increasingly complex world of international transactions, managing finances can be a complicated and messy job. Web-based applications offer a potential solution, but the wide variety of financial transactions has created challenging complications.

The solution provided by Global Payout is the Global Reserve Platform (GRP). A banking-in-a-box system, GRP provides a fully customizable financial system that allows businesses to handle the full range of financial transactions in one place. From managing government benefits to making biometric payments, the system offers everything a business needs. Additionally, because the setup can be adapted to the needs of different companies, it doesn’t force companies to accept a one-size-fits-all solution.

GRP is geared toward bridging divides between conventional banking and the businesses it serves. Global Payout has dealt with the practicalities of providing payment solutions in the mainstream, and, now, the company is applying its knowledge and expertise to the more challenging world of high-risk business.

Catering to the Cannabis Market

The company’s foray into this area is being led by its partner, MoneyTrac Technology, Inc. MoneyTrac is specifically geared toward serving the cannabis industry in the United States and beyond.

Because of its particular legal challenges, both internationally and within the United States, the cannabis industry may be the most in need of unconventional banking solutions. In many cases, cannabis businesses can’t access normal banking solutions as part of their daily work, making it difficult to manage payments from customers. This industry, therefore, may be the perfect sector in which to test alternative payment solutions.

Much like Global Payout, MoneyTrac provides a customizable web-based payment system. Powered by blockchain technology, the system provides fast, secure payment options that plug into conventional banking systems at either end, making it easy for customers to pay into the system and for businesses to extract their funds. This high-tech banking solution — MTRAC — was launched on April 4 (http://cnw.fm/st6rB), providing a solution for a sector in need.

“The goal of MTRAC from the beginning has been to leverage the different technologies available to us to remove the use of cash as the primary form of payment throughout the cannabis industry,” MoneyTrac CEO Vanessa Luna stated in a news release. “While other companies have struggled to find supportive financial solutions, MTRAC opted to take a different approach, and one that has relied heavily on the use of blockchain technology to address this problem for a massive and growing industry.”

By providing a payment system for the cannabis industry, MoneyTrac is fulfilling its “Key to Cashless™” objective. This has been achieved through partnerships with a range of companies in the cannabis and technology sectors, including Integrated Compliance Solutions, Crypto Value Management Systems (http://cnw.fm/K8xYY) and Greenbox (http://cnw.fm/DOv0r). By bringing together the needs of a specific sector and the potential of blockchain technology, MoneyTrac is carving out a niche in the field of high-risk payments.

Beyond the Basics

There may even be great potential for MoneyTrac’s payment solution to reach beyond the limits of the cannabis sector. The Federal Deposit Insurance Corporation (FDIC) has encouraged banks to provide services to businesses based on risk-based analysis (http://cnw.fm/d2UsM) rather than cutting off entire sectors from key financial services. Despite this, banks remain wary of high-risk customers, due to both the financial and the legal risks. Given the inherent conservatism of established banks, the situation is not unexpected, creating a space for disruptive payment providers such as MoneyTrac to fill the gap.

The company has begun diversifying its services in other ways as well. Through an investment in cannabis community periodical PotSaver, it has been able to expand its reach within its core customer base. PotSaver will be providing readers with money-saving deals on a range of products not limited to cannabis and its paraphernalia. Simply by being part of the broadening of that community, MoneyTrac is investing in reaching beyond cannabis.

A New Financial Sector

As the new financial sector is evolving, a variety of companies have advanced alternative payment solutions and financial systems. Like Global Payout, SinglePoint, Inc. (OTCQB: SING) is working to provide financial services to the cannabis sector. The two companies have worked together on providing streamlined payment services based on blockchain technology. SinglePoint is also heavily invested in bringing the cryptocurrency sector into the mainstream. The company is currently building out its bitcoin payments solution that will enable customers to pay for cannabis with cyrpto currency instantly at the point of sale.

Cannabis company MassRoots, Inc. (OTC: MSRT) is approaching the finance sector from another angle. The company is already providing a service to help customers judge the efficacy of cannabis strains and products, thereby demonstrating its ability to provide technological solutions to the needs of the sector. Now, it is establishing a subsidiary focused on blockchain, the technology at the core of cutting-edge payment solutions for high-risk industries. This will allow the company to provide financial services for cannabis suppliers and their consumers.

Finance isn’t the only support service that cannabis companies are looking to reshape to suit their needs. iAnthus Capital Holdings, Inc. (OTCQB: ITHUF), an operator of cannabis facilities across the United States, is expanding into a range of support services. Its acquisition of Pilgrim Rock Management, LLC (http://cnw.fm/X7PbJ) provides it with intellectual property licensing, professional and management services, and real estate and equipment leasing — all geared toward its core business.

Glance Technologies, Inc. (OTCQB: GLNNF) offers another alternative approach to payment through its smartphone-based payment system. This streamlined payment process allows users to easily make and track payments. Glance’s blockchain-based rewards system is being integrated into the app. The company recently invested in Loop Cannabis Insights Inc., providing it with more insight into the high-risk businesses that could benefit from its product.

Alternative payment systems offer a much-needed solution for high-risk businesses that struggle to access traditional finance. While the cannabis industry is providing a testing ground for these services, they are already spreading to the wider economy, allowing more people access to efficient payment systems.

For more information on Global Payout, visit Global Payout (OTC: GOHE).

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
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www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Budding Legal Cannabis Industry Offers Opportunity Amid Challenge, Chaos

CannabisNewsWire Editorial Coverage: Albert Einstein may have said it best: “In the middle of difficulty, lies opportunity.” The changing landscape of the cannabis industry perfectly illustrates this quote, and who better to know it than the companies and individuals involved in this burgeoning business? Canadians are standing by while government leaders grapple with last-minute details of legalizing adult-use recreational cannabis nationwide, while Americans watch lawmakers debate and often reject legislation that would make some form of the highly regulated plant legal in more states. Companies poised to benefit from this “green rush” are providing services specifically tailored to this growing market that, from the outside, can appear chaotic. Among the companies responding to the call are Global Payout, Inc. (GOHE) (GOHE Profile), Terra Tech Corporation (OTCQX: TRTC), GB Sciences Inc. (OTCQB: GBLX), Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) and Medical Marijuana Inc. (OTC: MJNA).

The Struggle

One of the most significant issues facing recreational and medical cannabis businesses is finding ready and willing financial institutions to handle the enormous amounts of cash the industry generates. U.S. federal banking institutions are hesitant to get involved, since cannabis remains illegal under federal law. Canadian banks are keeping an eye on the industry while waiting for legalization to take hold in Canada later this year. Even those institutions willing to serve the industry are having second thoughts. Just last month, the Bank of Springfield in Illinois told its cannabis clients it would close their accounts (http://cnw.fm/LyWP5). The decision to withdraw is tied to the January reversal of a policy from President Barack Obama’s administration that discouraged the prosecution of operators under state marijuana laws.

“The bank’s stance is that protecting their customers is paramount,” said Andrew Mack, a spokesman for the bank. “The Bank of Springfield will not jeopardize any of their customers by working with businesses that operate in the legal gray zone.”

Alternative Fintech Options

Global Payout, Inc. (GOHE) and its San Diego-based partner, MoneyTrac Technology (“MTRAC”), offer alternative fintech banking solutions to high-risk industries in the United States, Canada and Mexico. Through customized payment solutions, companies can process and manage electronic payments worldwide. MTRAC recently launched its new “Key to Cashless™” payment option powered by GreenBox blockchain technology (http://cnw.fm/T8hkZ) by placing a demo kiosk in the company’s corporate sales office.

Vanessa Luna, MTRAC CEO, said the company has worked on the project for over a year and a half and is now accepting applications from qualified merchants operating within a variety of “alternative” and “high-cost” industries interested in the system.

“We are extremely excited to be getting this payment platform off the ground, and we plan to pay special attention to marketing and recruiting local governments and municipalities to adopt the technology as a means for both regulating legal cannabis sales and tracking it for tax purposes,” Luna said. “The power of this payment system cannot be overstated; it is a one-of-a-kind service offering that no other company can match, offering cashless transactions, inventory tracking, fully integrated point-of-sale and one-click payroll capabilities and is very much the solution the cannabis industry has been waiting for.”

A Growing Marketplace

Grand View Research reports that the global medical cannabis market is projected to reach a value of $55.8 billion by 2025 (http://cnw.fm/m0Zjp) while retail sales of legal cannabis products in North America alone are expected to fetch $24.5 billion by 2021, according to an article in Fortune magazine. California’s medical marijuana market is already as big as the total markets in Colorado, Washington and Oregon combined, the article states (http://cnw.fm/hK3S7).

Ancillary businesses that support the cannabis industry are growing fast, as well, said Mitchell Kulick, partner at Feuerstein Kulick LLP, a cannabis law firm that provides legal services to companies, funds, investors and lenders in the space.

“The reality is that, despite being illegal on a federal level, medical and adult-use marijuana are by most measures real industries that cannot be ignored and that have the same needs as more mainstream business,” said Kulick (http://cnw.fm/MLcu6). “So, from payroll providers to point-of-sale software to compliance companies, law firms, accountants, and the list goes on, many businesses that are ancillary to the industry are now part of this revolution.”

As part of that “revolution” the MTRAC Kiosk, powered by GreenBox’s state-of-the-art closed loop blockchain technology, can be placed in any business that wishes to conduct cashless transactions. Customers either load currency onto an e-wallet or a pre-paid debit card and then use the digital currency or pre-loaded debit card to pay for purchases. Integrated Compliance Solutions (“ICS”), a leader in the Know Your Customer procedures as well as in legal compliance solutions for the cannabis industry, has committed to serving as the compliance arm of MTRAC and its GreenBox payment solution (http://cnw.fm/FOn5V).

“ICS has done an excellent job of making a name for themselves in terms of offering highly effective and much needed compliance for the cannabis industry,” Luna said. “We believe they have the necessary technology, experience and connections to provide the best compliance our network of clients can benefit from.”

Change of Heart

Former Republican speaker of the House John A. Boehner recently switched sides in the battle to decriminalize cannabis. Once “unalterably opposed” to rolling back federal regulations, Boehner has now joined a board of directors for a cannabis company and is voicing support for veterans to have legal access to medicinal cannabis, the Washington Post reports (http://cnw.fm/Ge34b). His change of heart and mind about cannabis is matched by many Americans who now overwhelmingly voice support for legalizing medical cannabis.

Paying for a cannabis prescription, however, remains a challenge since cash-in-hand is often the only method of payment available. Representatives from MTRAC are already in talks with several California municipalities to implement the company’s payment system as the preferred method for licensed dispensaries in their jurisdictions. MTRAC’s Kiosk offers one of the most effective cashless alternatives to these businesses in a way that meets compliance and regulatory requirements, the company said in a news release (http://cnw.fm/9U2gQ).

On the Bandwagon

GOHE and MTRAC aren’t the only companies that have seen — and responded — to a need in the cannabis industry. Other companies are moving to the forefront as they provide services specifically geared for this blossoming market.

California-based Terra Tech Corporation (OTCQX: TRTC) is a vertically integrated, cannabis-focused agriculture company committed to providing the highest-quality medical cannabis and other agriculture products. Terra Tech, which just reported a 41 percent year-over-year revenue growth for 2017, has established extensive cultivation capabilities and retail outlets in California and Nevada.

“Cannabis analytics firm New Frontier projects Nevada’s total cannabis market to be $622 million by 2020 and we are excited by the opportunity to participate in its growth,” Terra Tech CEO Derek Peterson said in a news release (http://cnw.fm/ExV4Q).

GB Sciences Inc. (OTCQB: GBLX) is a diverse cannabis company focused on standardized cultivation and production methods as well as biopharmaceutical research and development. The company’s goal is creating safe, standardized, pharmaceutical-grade cannabinoid therapies that target a variety of medical conditions, including Parkinson’s disease and neuropathy. GB Sciences recently received its license for cannabis oil production, which will soon begin at a Las Vegas facility, and expects retail sales revenues of its products to roll in during the second quarter of 2018, the company stated in a news release (http://cnw.fm/J4wCj).

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) has developed and out-licenses its proprietary DehydraTECH technology for improved taste, rapidity and delivery of bioactive compounds including cannabinoids. The company’s disruptive technology is proven to enhance the absorption of orally ingested cannabinoids while improving the taste, which allows for lower overall dosing with higher efficacy. Most recently, Lexaria received a new U.S. Patent Allowance for enhanced cannabinoid delivery using its DehydraTECH technology (http://cnw.fm/8vnXq). Lexaria currently has 15 patent applications filed in the United States and over 30 pending in more than 40 countries, plus two patents granted for cannabinoid delivery in the United States and one granted in Australia.

Medical Marijuana, Inc. (OTC: MJNA), headquartered in California, is a cannabis and industrial hemp company whose subsidiaries and investment holdings are involved in the development, sale and distribution of hemp oil and other products containing CBD-rich hemp oil. The company’s products are formulated for the pharmaceutical, nutraceutical and cosmeceutical industries, including dietary supplements. The company also sells its products in several countries that have legalized its products for the treatment of various illnesses and conditions. Medical Marijuana subsidiary HempMeds® announced at the Pittsburgh World Medical Cannabis Conference & Expo (http://cnw.fm/O3WBc) that it has released a new roll-on, topical hemp product specifically targeting athletes and active adults.

Look Out, It’s 2018

California’s conversion to statewide recreational cannabis is already experiencing some missteps and growing pains. Canada’s move to become the first Group of Seven nation to legalize adult-use marijuana is dominating international discussions while cannabis entrepreneurs scramble to capitalize on its legalization. Alcohol companies see opportunity amid the chaos, with some investing in cannabis firms or planning to introduce their own cannabis-infused products. Several companies serving the cannabis industry are looking at creating ways to avoid cash transactions through blockchain technology’s promise of a tamper-proof form of digital bookkeeping through a distributed, encrypted ledger. The cannabis industry’s growth presents challenges and opportunities on a variety of interesting and potentially very lucrative levels.

For more information on Global Payout, Inc., visit Global Payout, Inc. (GOHE).

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net

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The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

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Canadian Cannabis Sector Thriving Despite Slow Legalization Process

CannabisNewsWire Editorial Coverage: Despite legislative delays, the legalization of recreational cannabis will take place in Canada, likely by the end of summer at the latest. Companies are coming to grips with the licensing process and are ready to reach this new market. One of the leaders in the new industry is Choom Holdings, Inc. (CSE: CHOO) (OTCQB: CHOOF) (CHOOF Profile), which has gained licensing experience and developed a slick brand designed to appeal to the recreational market. Grower and seller Cronos Group, Inc. (TSX: CRON) (NASDAQ: CRON) is eyeing the international market through a cross-border deal with MedMen. Canopy Growth Corporation (TSX: WEED) (OTC: TWMJF) has been focusing on retail licenses and is now an approved supplier for every province that has gone through an approval process. Aphria, Inc. (TSX: APH) (OTCQB: APHQF) is moving from medical into recreational cannabis though an expansion strategy that has seen growth in profits and revenue. Hiku Brands Company. Ltd. (CSE: HIKU) (OTC: DJACF) has gained an early sales license for its subsidiary company and is setting up state-of-the-art growing facilities ready for the legal change.

A Matter of Time

Ever since Justin Trudeau and the Liberal party were elected on a pro-legalization platform, Canada has been heading towards an in-plain-view cannabis market. Bill C-45, legalizing the trade, was passed in the House of Commons by a two-thirds majority last November and is making its way through the Senate. The passage of the bill has taken longer than expected, but even the Conservatives are not trying to block its passage. A whole new consumer sector is coming to Canada.

The delays have largely been caused by concerns about practicalities. The recreational cannabis market will be tightly regulated, just as the medical market is now. Conservatives and Liberals alike want to ensure that the police and local authorities have time to prepare. Though this concern is causing delays, it also creates an opportunity for companies that are well prepared. A company that can show it is organized, responsible and compliant with government regulations will have an edge in getting licensed and started in the new market. Balancing that with a consumer-facing image of a fun, relaxing product may be key to early success.

Responsible Groundwork

One of the companies leading the way in this is Choom Holdings (CSE: CHOO) (OTCQB: CHOOF). A purpose-built recreational brand, Choom is led by an experienced management and leadership team that understands the complexities of the market it is entering. President and CEO Chris Bogart has more than twenty years of experience in international capital markets and was a co-founder of InMed Pharmaceuticals and Magnum Uranium. He has structured complex equity financing transactions in the United States, Europe and Canada.

The team has been preparing for the coming change in the cannabis market for more than four years. Choom has been going through the process of applying for an ACMPR (Access to Cannabis for Medical Purposes Regulations) license in Vernon, B.C. In 2017, it has offers to acquire three additional applicants, including one already involved in the process in Vancouver Island, B.C. The company is working diligently to be ready to sell cannabis as soon as legalization comes.

Going through the cannabis licensing process could provide Choom with another advantage. Its staff has developed the skills and experience to quickly navigate the regulatory process and has proven to authorities its ability be become a responsible cannabis grower. The company has been working for future retail growth and distribution. With Alberta alone expecting to license 250 stores in the first year (http://cnw.fm/Wgt5F), regulators are clearly going to be busy working through all the applications. Companies such as Choom that have experience, a good reputation and a well-presented application may have a critical edge in successful retail licensing.

Effective Supply Chain

The Canadian cannabis industry is estimated to be huge. Deloitte notes that it could be worth as much as $22.6 billion per year (http://cnw.fm/eOkR5). Even the more conservative estimates predict a market larger than spirits and nearly as large as wine. That’s a lot of profit available to companies that can move in quickly and provide a reliable retail experience.

Choom could provide that through its fully integrated seed-to-sale supply chain. The company will be growing its own cannabis in ACMPR-licensed facilities. The company has four ACMPR licenses in late-stage review: one applicant has been acquired with three others under offer, as well as its first applicant expecting to receive a cultivation license from Health Canada in the next few weeks. There is approximately 68,000 square feet of facilities being retrofitted to increase growing capacity in time for legalization, with a further phase of expansion planned for later in the year, thereby building production capacity to produce a steady supply of cannabis.

This cannabis will be packaged as Choom brand products and sold through a series of Choom stores. The company will run corporate stores, with other stores being operated across Canada by independent retail investor/owners. This plan is designed to ensure that Choom products have a prominent place in the Canadian retail market and can be found easily by consumers.

Great Branding

While an efficient supply chain is important to placing products in front of customers, it’s the presentation of the product that will draw consumers in. Again, Choom appears to be well prepared.

With tight marketing restrictions in place, cannabis companies won’t be able to rely on mass advertising to raise customer awareness. Instead, they’ll need appealing brands that quickly attract consumers and lead to word-of-mouth recommendations.

Choom’s brand is built around a fun, relaxed style that draws on Hawaii’s mellow atmosphere and the cannabis culture on the island in the 1970s. The name of the company itself comes from island slang, including “the Choom gang,” a well-known group from that era that famously included the hippest president in American history, Barack Obama. It’s a strong, clearly identifiable brand style, firmly established to attract the recreational market.

The strength of the brand is supported by the design of the company’s retail stores. Designed by the team behind some of the most recognizable retail spaces around, Choom stores are designed with a cool and modern layout and are designed to appeal to serving everyone, from current users to “curious customers.”

The combination of clean white space and open concept creates a comfortable, familiar atmosphere that is meant to make the stores accessible to both existing cannabis consumers and new customers. Plants and sofas signal that this is not just a shop but a place to hang out, a part of that relaxing Hawaiian vibe.

Cannabis Companies Prepare for Growth

Other Canadian cannabis companies are also preparing for an era of huge growth.

Toronto-based cannabis grower and seller Cronos Group, Inc. (TSX: CRON) (NASDAQ: CRON) has become the first pure play cannabis company to be traded on Wall Street (http://cnw.fm/BQk4n). This shows the growing acceptance of the cannabis market not just in countries where the drug has been licensed but in the broader investment community. Investors see growth ahead for these companies and are taking the opportunity to invest before prices rise. As a cannabis company with international ambitions, Cronos is also distinctive. Its corporate goals include becoming a global force, and it has created a first-of-its-kind cross-border venture with Los Angeles-based cannabis retail brand  MedMen (http://cnw.fm/wLhX4).

Canopy Growth Corporation (TSX: WEED) (OTC: TWMJF) is establishing its retail presence. The company has been chosen by the government of Manitoba (http://cnw.fm/fEb9K) as one of the first companies to set up licensed cannabis retail stores in the province. Of the four Canadian provinces that have established retail and supply frameworks, all have now chosen Canopy Growth as a trusted supplier, giving the company a strong place in the retail market.

Aphria, Inc. (TSX: APH) (OTCQB: APHQF) is a successful company in the medical cannabis market, with both profits and revenues consistently rising throughout 2016 and 2017. The company is looking to continue this expansion, with further growth in the medical sector alongside expansion into the recreational cannabis market. It has signed a deal to buy Nuuvera Inc. (http://cnw.fm/O3oHY) and shows no sign of slowing down.

Like Canopy Growth, Hiku Brands Company, Ltd. (CSE: HIKU) (OTC: DJACF) has gained one of the early licenses to set up cannabis retail stores through selection by the Manitoba government (http://cnw.fm/1EdHP). This license for its subsidiary Tokyo Smoke will put Hiku in a strong position to sell to a new customer base once Bill C-45 reaches its expected passage. The company is near the end of the ACMPR application process and has a state-of-the-art growing facility, with another set to be completed by the end of the second quarter of 2018. It should, therefore, have a vertically integrated business, with a complete supply chain from growth to sales.

Delays in the passage of Bill C-45 have caused no slowing in the growth of the Canadian cannabis market. If anything, the extra time has allowed companies to better prepare. When the recreational market opens later this summer, several strong businesses appear to be ready to step up and play their part.

For more information on Choom Holdings, please visit Choom Holdings (CSE: CHOO) (OTCQB: CHOOF).

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CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.