Sunniva Inc SNNVF

@Bluechip2 - here are the concerns in California

[sunrize]

1.  In Colorado and Washington licensed sales soared after legalization. One crucial difference with California is its massive surplus — the state produces far more pot than it can consume.

2. The bottom line is that there’s always been a robust illicit market in California — and it’s still there. Regulators ignored that and thought they could go straight into an incredibly strict and high-tax environment

3. California is producing as much as 15.5 million pounds of cannabis and consuming just 2.5 million pounds

4. Cannabis Benchmarks, a company that tracks marijuana prices, reported at the end of December 2018 that the average price of regulated cannabis in California was $1,183 a pound, compared with $3,044 in Illinois, $3,072 in Connecticut and $2,846 in Washington, D.C.

5. In an interview in 2016, Lt. Gov. Gavin Newsom, who takes office as governor next week, estimated that 85 to 90 percent of the cannabis that California produced was exported. “It’s a very serious issue,” he said, “and it’s going to create a dynamic where the black market will likely persist in a very stubborn way.”

6. Through September 2018, California has collected only $234 million in cannabis taxes. Colorado, with a population half the size of Los Angeles County, collected around the same amount last year.

7. Retailers and growers in CA say they’ve been stunted by complex regulations, high taxes and decisions by most cities to ban cannabis shops. At the same time, many residents are going to city halls and courts to fight pot businesses they see as nuisances

8. Less than 20% of cities in California — 89 of 482 — allow retail shops to sell cannabis for recreational use

9. Eighty-two of Los Angeles County’s 88 cities prohibit retail sales of recreational marijuana

10. Roping in 150 CA National Guards by Governor Newsome to fight illegal growers/businesses is not going to be enough in a vast state such as California, what with its diverse geographic features, vast forest and mountain areas. It's a start but it's not at all close to being aqequate.

 

[Bluechip2]

@ sunrize- good summary of legacy and current issues in California. There is actually 250 members assigned to the drug task force. I suspect as well that the black market will find it easier to export cannabis (get it out in one lump sum) then compete with the surging legal market which is expected to grow from $2.5 billion in 2018 to over $5 billion in 2019. The cities and counties that have

[sunrize]

The break down is 150 guards plus another 100 at checkpoints. Regardless, even if we give the benefit of doubt and say it's 250, that is still a small number. Look, CA was the first state to legalize medical marijuana. They have been fighting the back market since 1996. 22 years later, they are still no better at it. 80% is still from the black market. A very disturbing fact that you did not

[Bluechip2]

Yes, I understand that there will be continual price compression in regards to cannabis as a commodity. It will be interesting to see how it all plays out, but having one of a very few cGMP compliant facilities is a huge competitive advantage, which producing at scale affords a strong advantage in terms of cost and market share. The existing extraction business model of securing clean biomass