MONTREAL, Aug. 21, 2014 (GLOBE NEWSWIRE) -- Washington State Marijuana users spent $3.8 million ($127,000 per day) in the first month of legal sales. That will bring in approximately $1 million in state taxes, from 18 stores.
Like Colorado, Washington is applying sales taxes and excise taxes to marijuana, which will be paid first by the growers, then the processor, then the retailer. The tax rate at all three points is 25%.
The financial incentives for governments to regulate and tax marijuana sales ensure that this new frontier will expand, and investment fortunes will be made.
On August 5, 2014, Affinor Growers (CSE:AFI) (OTCQB:RSSFF) (Frankfurt:1AF) announced the acquisition of a 49% interest in Good to Grow LLC, a medical Marijuana dispensary and grower located on the Olympic Peninsula in Washington State.
"We are now partners in Washington State in a producing marijuana facility," stated Nick Brusatore in an exclusive interview with Financial Press. "In Canada there are 40,000 patients allowed to purchase medical marijuana. In Washington State there are 7,000,000 people."
Initiative 502 is one of two marijuana-legalization initiatives approved in the U.S., which opens the door to legal investment in a business that already generates over $1 billion in sales every year.
"When we receive the 502 license," stated Brusatore, "Affinor will be able to mass produce weed for recreational users in Washington State. Since 10% of Americans smoked pot in the last year, that puts our immediate potential market at 700,000 users – plus out of state visitors."
Good to Grow is part of a small business revolution in the Port of Willapa Harbor, a picturesque region that is set to mature with the new marijuana industry. The young company is fully operational.
"The existing facility is about 5,000 square feet," stated Brusatore," We are going to spend the $600,000 investment to scale it up into a state of the art production facility. Affinor is the first publicly traded Canadian entity positioned to service the recreational U.S. market in Washington State."
The recreational industry is ramping up quickly and retail outlets have started opening. The Port of Willapa Harbor in Raymond Washington became the first government body in the state to establish a large-scale marijuana growing operation legally under section I-502.
"We anticipate having a 502 designation by January, 2015," stated Brusatore. "The application is in, and we are just submitting our plan, and figuring out how to accommodate the residency laws."
Raymond WA city officials confirmed that Good To Grow is a legal marijuana growing operation respecting all the laws and regulations. The new growing industry enjoys significant public support and the city is enthusiastic about the creation of new environmentally friendly jobs.
Good To Grow is owned by entrepreneur and horticulturalist, Richard Montoure, who arrived on the Olympic Peninsula by a circuitous route.
"I tried operating a collective garden in Seattle and other areas of Washington but I was looking for a more business-friendly environment," stated Montoure in an exclusive interview with Financial Press. "Several of my associates had mentioned Raymond, Washington as a progressive place to do business, so I came and checked it out - and I was very impressed."
Montoure found a warehouse, met with the Port Commissioner and quickly achieved a high level of comfort. The municipality prefers growers to retail outlets, so Montoure has been focusing on that.
"We've been growing high quality medical marijuana and doing about $30,000 a month in sales," stated Montoure. "In terms of our future ambitions, this is basically a pilot project, in a 502-compliant building. With Affinor's investment, and the granting of the 502 status, we intend to become a significant revenue generator and local employer."
"Affinor will bring the existing facility up to the strict standards required by Health Canada for growing and dispensing marijuana," confirmed Affinor President and CEO Sebastien Plouffe, "This is an amazing deal for Affinor because it will generate immediate revenue in the U.S. and Richard has already shown us his passion and dedication."
AFI has also entered the multi-billion dollar strawberry market after acquiring an exclusive license to grow market-ready strawberries using automated, software-driven, vertical farming technology from Vertical Designs.
"Vertical growing technology works beautifully for strawberries, lettuce, herbs and marijuana," stated Brusatore. "It produces about 13 times more food per square foot, than a traditional greenhouse while creating zero water waste."
"I have a passion to grow marijuana," stated Montoure. "It is a craft that I have honed over many years. The partnership with Affinor makes it possible to do this on a much larger scale, using their cutting-edge expertise and technology."
Washington State Tax Revenues are forecast to reach $122 million in the next two years.
Affinor is currently trading at .45 with a market cap of $27.4 million.
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CONTACT: Affinor Growers Inc.
Sebastien Plouffe
President & CEO
410 Saint Nicolas, Suite 236
Montreal (QC) Canada H2Y 2P5
Phone: (514) 947-2272
splouffe@affinorgrowers.com
