Tag: ITHUF

Benzinga Cannabis Capital Conference Will Bring Cannabis Visionaries and Investors Together

  • Presented by Benzinga, the upcoming cannabis conference will be held at the Eden Roc in Miami Beach, Florida; it is the go-to source event for investors who want the latest news and opportunities from the burgeoning sector
  • The conference will kick off on January 15 with an invite-only C-Suite retreat for cannabis operators; the audience will be just 100 C-Suite executives; a pre-retreat reception will be held the night prior
  • The conference will feature company presentations, networking receptions and an all-star lineup of knowledgeable keynote speakers talking about the global opportunities for cannabis

Benzinga Cannabis Capital Conference (CCC) will offer attendees a fast-paced comprehensive lineup of speed networking, a specially selected lineup of keynoters, corporate presentations for investors and a look at the future of cannabis internationally. It will be held January 15-16 at the Eden Roc in Miami Beach (www.BenzingaCannabisConference.com).

The attendee mix is expected to consist of 25 percent institutional investors, 20 percent retail investors, 40 percent public cannabis companies, 10 percent private cannabis companies and five percent media.

Reserve your place and book hotel rooms for CCC now at http://cnw.fm/42sPg. Be sure to learn more about how you can qualify for special discounted tickets and hotel rooms.

“Benzinga’s Cannabis Capital Conference brings together the crème de la crème of the cannabis world,” Neal Hamilton, vice president of marketing for Benzinga, stated in a recent press release. “Benzinga has long presided as a financial media leader, offering broad coverage relative to the cannabis space. We now bring that standout expertise to a live setting where entrepreneurs and investors can network, forge deals and learn from today’s top cannabis influencers, policymakers and innovators.”

CCC will showcase the following public and private companies:

  • AmeriCann Inc. (OTCQB: ACAN)
  • Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB)
  • Cannex Capital Holdings Inc. (CSE: CNNX) (OTCQX: CNXXF)
  • Harvest Health & Recreation Inc. (CSE: HARV)
  • CEDR HR Solutions
  • CuraLeaf Holdings Inc. (CSE: CURA)
  • DionyMed Brands Inc. (OTC: HMDEF)
  • Growcentia
  • iAnthus Capital Holdings Inc. (CSE: IAN) (OTCQX: ITHUF)
  • InMed Pharmaceuticals Inc. (OTCQX: IMLFF) (TSX: IN)
  • KushCo Holdings Inc. (OTCQB: KSHB)
  • LGC Capital Ltd. (TSX.V: LG)
  • Liberty Health Sciences Inc. (OTCQX: LHSIF)
  • MariMed Inc. (OTCQB: MRMD)
  • Medicine Man Technologies Inc. (OTCQX: MDCL)
  • Medipharm Labs Corp. (TSX.V: LABS)
  • MJ Freeway
  • New Frontier Data
  • Newstrike Brands Ltd. (TSX.V: HIP)
  • Plus Products Inc. (CSE: PLUS)
  • Pure Global Cannabis Inc. (OTC: PRCNF) (TSX.V: PURE)
  • Radicle Inc./Gage Cannabis
  • Starbuds/Compass Cannabis
  • Trulieve Cannabis Corp. (CSE: TRUL) (OTC: TCNNF)
  • Valens GroWorks Corp. (OTCQB: MYMSF)
  • Wayland Group Corp. (OTCQB: MRRCF) (CSE: WAYL)
  • High Tide Inc. (CSE: HITI)

For more information, visit the event’s website at www.BenzingaCannabisConference.com

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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.

CannabisNewsWire is at the epicenter of the Cannabis Revolution.

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Why Companies Are Buying Up Assets in the American Cannabis Market

CannabisNewsWire Editorial Coverage: Canada became the first country in the G8 to legalize recreational cannabis. With all the buzz surrounding Canada’s cannabis boom, savvy investors have begun to assess the U.S. market, focusing on companies such as Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF) (CHMJF Profile), which in July 2018 purchased a suite of physical assets, currently under lease to Sugarleaf Farm LLC, a I-502 Tier 3 licensee located in Sedro Woolley, Washington. This moved was fueled by movement north in Canada, including large Canadian cannabis companies such as Origin House (CSE: OH) (OTCQX: ORHOF) and Namaste Technologies (TSX.V: N) (OTCQB: NXTTF), which  are already seeing major success as their products continue to sell well across the country. While newer entrants in the cannabis industry such as CannTrust Holdings (TSX: TRST) (OTC: CNTTF) and iAnthus Capital (CSE: IAN) (OTCQX: ITHUF) are creating their own product lines and playing catch up with major brands that consumers are already familiar with.

To view an infographic of this editorial, click here.

Establishing Brands Early

Large-scale cannabis legislation has never existed to the extent that it now does in Canada. With major Canadian companies creating brands that resonate with cannabis consumers.

The legal U.S cannabis market is worth an estimated $8.5 billion, claiming 90 percent of the entire $9.5 billion global market. Of that, sales of legal marijuana in Washington State have climbed up to $1.3 billion in the fiscal year 2017, up from $786 million in fiscal 2016, and $259 million the year before. The Canadian market was worth only 6 percent of that $9.5 billion total in 2017. In Canada, competition is heating up as the larger cannabis companies battle for their share of the market. They are relying on their brands and name recognition to help them achieve success.

However, the U.S. cannabis market is shaping up differently. Due to cannabis being federally illegal in the United States, cannabis companies are unable to ship their products across state lines. The unique state-by-state approach to legalization has provided Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF) with an ideal environment to build its brands through the production and sale of premium cannabis in California and Washington. It has also shielded American companies from an influx of foreign product.

Chemistree is another company that is focused on establishing quality brands. The company originally acquired Sugarleaf’s assets in Washington in order to augment its product line with a desirable premium brand. Sugarleaf is already featured in over 50 dispensaries within the state, with estimates suggesting that it will penetrate over 100 stores by 2018 and as many as 200 stores by 2019.

Sugarleaf’s signature White 99 strain has a THC level that registers between 28–32 percent. This is incredibly high even when compared to some of the premium cannabis strains that are being grown in Canada. Sugarleaf’s master grower, Jason Flynn, is one of the many reasons Chemistree chose to acquire the brand. Flynn and his team have won two consecutive cannabis cup competitions for their strains, including the 2014 People’s Choice (Presidential Kush) and 2015 People’s Choice (White 99).

Chemistree also managed to purchase property in the middle of California’s cannabis-friendly Desert Hot Springs for a reasonable $1.23 million. The site is large enough to support up to 205,000 square feet of greenhouses spread out across three facilities. Once fully operational, the company could produce nearly 50,000 pounds of cannabis per year. Desert Hot Springs is a popular cannabis region where there are 3.78 dispensaries for every one thousand people, which is the second highest pot shop density in the state.

Premium Cannabis Is the Real Asset

The demand for premium products exists as cannabis enthusiasts desire THC-rich strains in order to achieve a vivid sensory experience. Growing high-quality cannabis at scale is a challenge that many large producers struggle with as it costs more to produce, and the margin of error is higher.

Health Canada predicts that nearly 2.2 million pounds of cannabis will be consumed within Canada in 2018 alone. The majority of that cannabis will be low- and mid-grade quality, which wholesales for a lot less. Premium cannabis, while more difficult to grow, does provide companies that can grow it with higher profit margins. According to Deloitte, high-quality cannabis could sell for up to 12 percent more than lower quality flower.

The majority of the provinces have supply agreements in place with various licensed producers in the industry. These supply agreements were established in order to provide additional premium cannabis to those provinces.

Demand Will Only Increase

The U.S. cannabis sector is currently in its formative stages. Established companies within the industry that are preemptively laying the framework before the federal government legalizes recreational cannabis should have the ability to build brand recognition and scale them as the floodgates open.

Grand View Research predicts that the global cannabis market could be worth $146.4 billion by 2025. Companies such as Chemistree may be ideally positioned to take advantage of a larger global market because of its focus on building long-term brands that appeal to cannabis users.

Major Players in North American Cannabis

Origin House (CSE: OH) (OTCQX: ORHOF) is focused on creating global brands. It currently holds more than 50 brands including Bhang, Soul Sugar Soul Kitchen and Green Rock Botanicals, among others. The company has a distribution network of 4500plus dispensaries across the United States. With a suite of established brands across key markets in North America, Origin is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke.

CannTrust Holdings (TSX: TRST) (OTC: CNTTF) is a relatively new Canadian cannabis company specializing in medical cannabis products including CBD- and THC-infused capsules and oils. CannTrust recently partnered with Breakthru Beverage Group’s subsidiary company Kindred to secure distribution through the Canadian adult consumer market.

Namaste Technologies (TSX.V: N) (OTCQB: NXTTF) operates the largest global cannabis e-commerce platform with more than 30 websites in 20 countries under various brands. The company product offering through its subsidiaries — such as CannMart Inc., VapeBR, VaporSeller, etc. — includes vaporizers, glassware, accessories, CBD (cannabidiol) products and medical cannabis in the Canadian market.

iAnthus Capital (CSE: IAN) (OTCQX: ITHUF) is a U.S.-based licensed producer and cannabis retail company. iAnthus currently owns a 200,000-square-foot facility in Lake Wales, Florida, and a 4,500-square-foot dispensary in Palm Beach County, Florida. It is also planning to scale to more than 30 locations throughout the state in the coming years.

For more information on Chemistree, visit Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF)

Please also read and review the article ‘With Cannabis Now Legal in Canada, Investors Are Turning South to the Largest Emerging Cannabis Market in the World’

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

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CannabisNewsWire (CNW)
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www.CannabisNewsWire.com
303.498.7722 Office
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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)
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.

Opportunity Amid Cannabis Banking Hurdles

CannabisNewsWire Editorial Coverage: Investors seeking opportunities in the cannabis market may want to turn their attention toward companies offering solutions for a situation that could otherwise slow the industry’s growth. A number of emerging firms are providing or pursuing payment options that can help cannabis companies sidestep the roadblock created by the lack of access to traditional banking services. Among the companies honing financing, payment processing and other business development services for the cannabis industry are Global Payout, Inc (OTC: GOHE) (GOHE Profile), MassRoots Retail (OTC: MSRT), iAnthus Capital Holdings, Inc. (CSE: IAN) (OTC: ITHUF), and Glance Technologies, Inc. (OTC: GLNNF) (GET: CNX). Meanwhile, recent action at Canopy Growth Corp. (CC: WEED) demonstrates that a change in bank industry policy could be on the horizon.

In Arizona, the state Department of Health Services reported that its dispensaries sold over 43 tons of medical marijuana through year-end 2017, an increase of 48 percent from 2016. Capitol Media Services estimates the quantity of medical marijuana sold in Arizona in 2017 represented approximately $275 million in retail sales for the year. Sales in the United States as a whole represent a multibillion dollar market that is only expected to grow as the legalization process continues to spread. In Canada alone, taking into account the planned July 2018 legalization of recreational cannabis, sales of the product are expected to reach C$6 billion by 2021.

Despite the massive sales figures, cannabis companies largely conduct business in cash. With marijuana classified as a Schedule 1 drug at the federal level in the United States, the cannabis industry is essentially unbankable there, creating an opportunity for companies that can help industry participants process the payments generated by cannabis sales.

The Struggle to Organize Necessary Elements of Infrastructure

For the time being, cannabis businesses continue to struggle with financing issues related to customer receipts and budget expenditures, especially in the United States. While U.S. banks have overwhelmingly refrained from doing business with cannabis companies due to the federal prohibition on sales of the product, in Canada some banks have begun to offer business accounts to cannabis companies. Even when Canada does begin legalization in mid-2018, however, there’s no guarantee its banks will be quick to finance cannabis companies. The year is expected to be a landmark period for cannabis-related businesses, yet there’s still a fair amount of uncertainty about how they will fare. Global Payout, Inc. (OTC: GOHE) is one company positioned to help alleviate that uncertainty through a number of payment processing services.

Payment Solutions for the “Unbankable”

Global Payout’s fintech payment solutions can be fully customized for virtually any domestic and international organization distributing money worldwide. Through its MoneyTrac Technology (“MTRAC”) subsidiary, Global Payout is focused on helping reduce the extensive security, accounting and overhead costs dispensaries face from having to deal exclusively in cash. The reliance on cash transactions by cannabis businesses leaves these companies vulnerable to theft and facing all the inconvenience associated with running a cash-only business. And the problem is only expected to grow more acute as the rapidly growing multibillion-dollar industry continues to expand, with cannabis now recreationally available in eight states.

Addressing this opportunity in the company’s letter to shareholders, Global Payout CEO James Hancock stated: “Recognizing the gap between adequate financial technology solutions and the rapidly expanding, multi-billion-dollar cannabis industry, a collective decision was made in March to spinout our majority owned subsidiary, MoneyTrac Technology to begin serving the underserved businesses of the cannabis industry. … These partnerships, combined with several other important developments throughout the year, have effectively positioned MoneyTrac to generate revenue and become a recognized leader of a variety of service and solution offerings within the cannabis industry.”

MTRAC plans to launch its regulatory compliant token offering in the first quarter of 2018 as part of an effective, decentralized system for processing payments (http://cnw.fm/eoPQ3). The M-Token from MTRAC will allow vulnerable businesses to migrate from a cash-only business model by offering the basic yet essential services denied to them by the traditional banking industry. In the process, the businesses can improve their security and boost their operational efficiency.

Vanessa Luna, CEO of MTRAC, stated, “MoneyTrac’s primary objective has been, and will continue to be, to serve the legitimate and profitable businesses of the cannabis industry by effectively addressing the financial technology and banking challenges they are faced with. … Our regulatory compliant Token Offering will revolutionize how these businesses operate and help MTRAC further its objectives for identifying various partnerships and cultivating the relationships necessary to pave the way for alternative banking solutions.”

Cannabis Compliance

To help it develop a strong foundation for the delivery of banking solutions to the legal cannabis industry, MTRAC recently signed a joint-venture agreement with Integrated Compliance Solutions, LLC (“ICS”), a leading provider of financial regulatory compliance services and solutions to the retail cannabis industry. The partnership bolsters MTRAC’s ability to provide compliant banking solutions with its strategic partners.

In the press release announcing the agreement, Luna emphasized the importance in maintaining compliance in the heavily regulated retail cannabis industry.

“The ICS team carries several years of valuable experience with them in the field of regulatory compliance solutions and financial technology services for banking, and their integration into the banking solutions (that) we are dedicated to delivering to the cannabis industry is not only significant, but essential to our commitment of providing retail cannabis businesses with the most compliant and regulated banking solution available,” she stated (http://cnw.fm/xiq7H).

Exploring Expanded Marketing Opportunities

Global Payout also recently signed a Sales Partnership Agreement with Eyeconic.tv in a move to explore the potential of creating new revenue streams (http://cnw.fm/vnXs7) while boosting the impact of both parties.

The companies plan to leverage the network of dispensaries and industry-specific brands and products established through MTRAC’s PotSaver publication in conjunction with Eyeconic.tv’s digital media platform. Eyeconic.tv is an innovative producer and distributor of interactive digital mediums focused mainly on digital menus, advertising and kiosks to customers on their business premises. PotSaver is a revenue-producing community periodical and online advertising platform that provides listings for discounted cannabis-related products to local dispensaries and shops.

“Establishing this sales partnership with Eyeconic.tv is an incredibly effective way to deliver more value to the solutions and services we are providing to cannabis-related businesses. The Eyeconic.tv team are true pioneers in the digital marketing and advertisement space and have established themselves as the premier provider of these services throughout the cannabis industry. I am pleased they recognize the value we can bring to their brand through the network of dispensaries we have created through our PotSaver publication, as well as through the invaluable expertise our team offers in developing and implementing successful sales and marketing strategies. I am extremely confident that this will be a partnership that is mutually beneficial to the objectives of each of our companies,” Luna said.

Additional Cannabis Payment Solution-Related Opportunities

In a sign that Canadian banks are beginning to change their position about financing cannabis firms, Canopy Growth Corp (CC: WEED), a diversified Canadian cannabis company that offers curated cannabis in dried, oil and capsule form, has recently announced a $175 million bought stock offering led by two major Canadian investment banks — Bank of Montreal, through its BMO Capital Markets division, and GMP Securities. Canopy Growth operates on four continents where it sells cannabis products, conducts R&D, and provides cannabis-related education for healthcare practitioners.

While Canadian banks may be beginning to change their stance on financing cannabis firms, it should be noted there are no signs of such a thaw to the south where banks continue to avoid doing business with cannabis firms because of federal regulations. Canopy Growth’s extensive operations outside of Canada mean that the firm can still benefit from payment solutions that enable it to reduce the amount of cash transactions it conducts.

MassRoots (OTC: MSRT) offers one of the most popular technology platforms for the regulated cannabis industry. The company’s mobile apps, with more than a million users, enable consumers to draw on community-sourced reviews to make educated cannabis purchasing decisions. The company offers a compliance and point-of-sale system called MassRoots Retail, which helps cannabis businesses conduct retail operations more efficiently and manage compliance reporting as required by state regulators. MassRoots has recently formed a blockchain subsidiary focused on developing solutions for the cannabis industry based on the blockchain. The company believes that making use of the transparent digital ledger that constitutes the blockchain can help the cannabis industry operate with greater efficiency, accountability and transparency.

iAnthus Capital Holdings (CSE: IAN) (OTC: ITHUF) offers investors exposure to licensed cannabis cultivators, processors and dispensaries located across the United States. The company offers capital as well as hands-on operational and management expertise. With seven investments in six states covering an addressable market of approximately 50 million people, the company’s dispensaries stand to benefit from access to innovative payment processing and financial solutions that enable them to more efficiently handle transactions.

Glance Technologies, Inc. (OTC: GLNNF) (GET: CNX) owns Glance Pay, a mobile payment system transforming the way smartphone users interact with merchants and buy products. The company’s partially owned subsidiary, Cannapay Financial, is the vehicle for Glance Technologies’ entry into the cannabis industry through licensing agreements that leverage the Glance Pay App and the Glance Merchant App’s data analytics. Cannapay Financial has two apps in development — Cannapay, a mobile-to-mobile payment system for the marijuana industry, and SuperDope Delivery, a mobile ordering and delivery app for cannabis consumers.

The tremendous growth being experienced by the cannabis industry, coupled with the difficulty cannabis businesses are experiencing in accessing banking services, especially in the United States, have created significant opportunities for firms that can offer these businesses effective methods of processing transactions. Each of the companies listed above is positioned to benefit from this evolving trend, making them worthy of further investigation by investors looking to capitalize on the expansion of the cannabis industry and the corresponding development of payment solutions to facilitate that expansion.

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

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