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The Growth of Tax Revenues in the Legal Cannabis Market

GBLX, CVSI

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, April 13, 2017 /PRNewswire/ --

The states that have legalized cannabis products have seen a significant increase in tax revenues. A recent report by New Frontier Data, estimates that the legal cannabis market is expected to generate approximately $655 million in state taxes on retail sales in 2017. This is a much higher tax revenue than what is generated by the alcohol industry. By 2020, tax revenues from cannabis will grow to $1.8 billion, of which $1.4 billion will be from cannabis-specific taxes. If to include medical sales in those numbers that would bring the total to $745 million for 2017 and $2.3 billion by 2020. SinglePoint, Inc. (OTC: SING), GB Sciences, Inc. (OTC: GBLX), CV Sciences, Inc. (OTC: CVSI), MCig Inc. (OTC: MCIG), Mountain High Acquisitions Corp. (OTC: MYHI).

"During this tough economy, states are looking for any way to close their budget shortfalls and it appears that cannabis may hold an answer for them. New Frontier Data looked at the potential revenues that could be generated from state cannabis taxes and found that in this year alone, states could raise nearly $750 million and triple that number by 2020. These revenues will have a meaningful impact on state programs and provide governors with much needed breathing room in their budgets," stated by New Frontier Data CEO, Giadha Aguirre De Carcer.

SinglePoint, Inc. (OTC: SING) is a holding company specialized in the acquisition of small to mid-sized companies. On March 14th the company announced that it has closed its first round of funding to acquire a portion of Jacksam Corp., dba Convectium, the developer of a unique oil filling system poised to revolutionize the cannabis market. Convectium projects full-year 2017 sales of $3.5 million, a triple-digit increase over the year prior. The acquisition represents the first of many strategic investments SinglePoint intends to make to diversify its revenue streams in the multi-billion dollar cannabis industry.

As previously announced, SinglePoint will invest a stock and cash consideration totaling $800,000 to help fund the growth of Convectium and the marketing of its revolutionary 710Shark and 710Seal system. Developed by Convectium, the system is capable of filling and packaging more than 100 cartridges or disposable vape pens in 30 seconds, making it the fastest and only filling and sealing system of its kind. Convectium also offers a line of B2C products which SinglePoint will sell online through its SingleSeed.com subsidiary.

Driven by increasing product demand and brand visibility, Convectium projects full-year 2017 revenues of $3.5 million, an increase of 150% compared to revenue of $1.4 million for full-year 2016. The company is on track to achieve this goal, as sales for the first quarter of 2017 have already significantly surpassed first-quarter sales in 2016.

"We have evaluated numerous investment prospects in the cannabis space, and found there is nothing that compares to this opportunity we have with Convectium," states SinglePoint CEO, Greg Lambrecht. "With this transaction, we will acquire a stake in a cannabis business that never touches a marijuana plant. This is the strategy we will use as we move forward to hedge us against changing federal and state laws."

GB Sciences, Inc. (OTCQB: GBLX) is a diverse cannabis company focused on standardized cultivation and production methods; as well as biopharmaceutical research and development. Recently, the company and Arizona-based Kush Cups signed an agreement to produce cannabis-infused products in the state of Nevada. "We're excited to join forces with Kush Cups. They have an excellent line of products and are the leaders in their space in Nevada," said GB Sciences CEO, John Poss. "Our partnership is positioned for maximum impact in the Nevada market. It is the first major step in our strategy to be a trusted ingredient in leading brands of infused products and therapies."

CV Sciences, Inc. (OTCQB: CVSI) focuses on drug development activities on products containing cannabidiol (CBD) as the active pharmaceutical ingredient, and also is engaged in the development, marketing and sale of end consumer products containing CBD which is refined into its PlusCBD Oil™ brand. Recently, the company announced the launch of the first online education platform designed to enhance its brand education and advocacy through Experticity. The company's education platform will cover a variety of topics pertaining to hemp, phytocannabinoids, and its industry-dominating consumer products brand, PlusCBD Oil™.

MCig Inc. (OTCQB: MCIG) is a diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. MCIG has transitioned from a vaporizer manufacturer to industry leading large scale, full service cannabis cultivation construction company with its Grow Contractors division currently operating in the rapidly expanding Nevada market. On April 5th, 2017, Grow Contractors, Inc., (GC) a wholly owned subsidiary of mCig, Inc., launched its new greenhouse website. Rob Kressa, Grow Contractors' CEO, stated, "The new open disclosure standard for the greenhouse selling portal is just the first step in our progression to becoming the nation's largest greenhouse supplier in the cannabis grow and herbal farming markets. Since we announced our exclusive agreement with Sangreen for distribution of greenhouses at half the cost of the current market price, we have spent the past few months perfecting the design and supply lines."

Mountain High Acquisitions Corp. (OTCQB: MYHI) is a holding company focused on the commercial hemp and CBD products industries. The Company's wholly owned subsidiary, GreenLife BotaniX, Inc. is a California-based developer and marketer of the 'SuperCBD' brand of CBD hemp oil infused nutraceutical products. GreenLife features over a dozen CBD-based products on its e-commerce website, including four primary flagship products; 'Super CBD Drops' - a high-potency vanilla flavored vegan hemp oil tincture, 'Super CBD Lotion' - a CBD lotion made with a unique blend of CBD, eucalyptus oil, and vitamins and minerals, 'Super CBD Lip Balm' - a medicated ointment intended for a variety of skin problems, cuts and rashes, and 'Super CBD Pills' - a concentrated CBD dose in pill form for easy ingestion.

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