New Adult Use Program Establishes Massachusetts as a Regional Destination for Cannabis on the East Coast
AmeriCann, Inc. (OTCQX: ACAN), an Agricultural-Technology company that is developing next generation sustainable, state-of-the-art medical cannabis cultivation properties, announced strong support for the landmark adult use cannabis bill signed by Massachusetts Governor Charlie Baker on July 28, 2017.
The new law implements the successful ballot measure approved by voters in November of 2016. Massachusetts is the first state in the eastern U.S. to legalize the adult use of marijuana.
AmeriCann's flagship project, the Massachusetts Medical Cannabis Center ("MMCC"), is 47 miles from Boston in the midst of the rapidly growing Massachusetts medical cannabis market. The MMCC project is approved for 1 million square feet, which will be developed in phases and is expected to be one of the most technologically advanced cultivation facilities in the nation.
"We believe Massachusetts will be a dynamic developing cannabis market for many years, and that our MMCC project will become a center of excellence for quality, consistency and efficiency and play an important part in helping to provide the cannabis infrastructure the Commonwealth will require," commented AmeriCann CEO Tim Keogh. "Our Company made a commitment in 2014 to make a major investment in the future of the Massachusetts cannabis market and it appears to have been a very good decision," continued Mr. Keogh.
The Commonwealth currently lacks the infrastructure to support the anticipated demand. According to the Denver Post, Massachusetts has only several hundred thousand square feet of cultivation infrastructure, but will require several million additional square feet.
"Based on our first hand experience in Colorado we believe the bill Governor Baker signed is well-drafted and will usher in an exciting new industry in the Commonwealth that will have a number of benefits," added Tim Keogh, a Massachusetts native and President and CEO of Colorado-based AmeriCann.
"As the industry develops it will create thousands of new jobs, hundreds of millions in much needed tax revenue and provide welcomed medical and other benefits for the residents of Massachusetts. And while tax revenue is what people focus on, the job creation is in many ways the more important driver for the economy," continued Mr. Keogh.
Colorado implemented a program for adult use cannabis in 2014 and the results have exceeded all projections with 2017 cannabis sales in Colorado on a pace to exceed $1.5 billion, with tax contributions of over $250 million.
Massachusetts introduced a voter approved medical cannabis program in 2014 that has resulted in over 40,000 registered patients and is expected to generate over $100 million in sales in 2017. Industry experts believe with the addition of adult use, the Massachusetts cannabis market will expand to over $1.6 billion by 2021.
Besides Massachusetts, California, Maine, and Nevada also voted to legalize adult marijuana in November 2016. Nevada is the only state that has set a regulatory structure and commenced sales. In the first weekend of Adult-Use sales in Nevada its new program generated over $500,000 in tax revenue for the state and dispensaries were experiencing long lines and shortages of products for the 47 dispensaries that were open.
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