CROP Applies for Multiple California Retail Locations and Confirms Shipment of 330,000 Pre-Rolled Cones, With Custom Evolution and Hempire Filters
The first application, in Chula Vista, has already been notified of passing phase 1 of the licensing process. The second, in Contra Costa, has had a letter of intent submitted with the municipality and several appropriate locations have been identified. CROP’s business development team has started reviewing several existing licensed M&A opportunities in California for a flagship location.
Furthermore, CROP has confirmed with the brand product supplier that 330,000 pre-rolled cone sleeves have been shipped with custom Hempire and Evolution filters. The pre-roll equipment, located at the recently acquired NorCal distribution centre, can roll up to 10,000 cones per day with sufficient flower remaining from 2018 to fill the cones.
The current market in California for pre-rolled cones is $5.00 wholesale with an MSRP of $10.00 and infused cones are wholesaled at $12.00 with a MSRP of $18.00.
“California’s cannabis market is expected to soar to $5.1 billion — and it’s going to be bigger than beer” Business Insider (Berke 2018)
A report from the cannabis industry research firm BDS Analytics estimates sales of cannabis to hit $3.7 billion by the end of 2018 alone, and predict that number will increase to $5.1 billion in 2019 as more dispensaries come online.
For comparison, beer sales in California hit $5 billion in 2017, according to industry research group IBIS World.
California — the world’s sixth largest economy with a population of close to 40 million — will be a huge chunk of the total market for cannabis in North America. Legal marijuana sales hit $9.7 billion across the seven states where recreational marijuana is legal, excluding California, and Canada in 2017 alone, according to BDS. That number is expected to hit $24.5 billion in sales by 2021, despite continued federal prohibition.
Michael Yorke states “The sales growth trend is unabated across the board. Clearly, the California market is potentially vast and, once the regulatory climate has the federal government on side, we expect sales predictions by market research firms to be sharply revised upwards and the prospect of cannabis business ending up being bigger than beer becoming much closer to a reality.”
Crop is public company trading under symbol CROP.CSE. The company is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada cannabis farm, 2,115 acres of Hemp CBD farms, and a growing portfolio of common share equity in upcoming listings within the cannabis space.
Disclaimer for Forward-Looking Information
Certain statements in this press release are forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the expected returns from the California Project; the technological effects of California Project; the intention to expand its portfolio; and execute on its business plan. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding the regulatory and legal framework regarding the cannabis industry in general among all levels of government and zoning; risks associated with applicable securities laws and stock exchange rules relating to the cannabis industry; risks associated with maintaining its interests in its various assets; the ability of the Company to finance operations and execute its business plan and other factors beyond the control of the Company. Such forward-looking statements should therefore be construed in light of such factors, and the Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
The CSE has not reviewed, approved or disapproved the content of this press release.