FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “Highest Grossing Quarter: Global Payout More than Doubles Revenue.”
Global Payout Inc. (OTC: GOHE) is very pleased to announce that their Third Quarter Disclosure has been published on OTC Markets and shows a significant increase in revenue over Q2 of this year. Gross revenue nearly tripled and net revenue more than doubled over the previous quarter.
Since the Company’s inception in 2009, Global Payout, Inc. has been a leading provider of comprehensive and customized prepaid payment solutions. From 2014 to 2017 Global focused on identifying new state of the art technologies in a variety of industry sectors and successfully helped launch MoneyTrac Technology Inc. and other companies within the FinTech space. In 2018, Global completed a reverse triangular merger with MoneyTrac Technology Inc. resulting in Global retaining the wholly owned subsidiary, MTrac Tech Corporation. Global’s current focus is continuing to identify new business opportunities while it reorganizes its future business endeavors.
The U.S. cannabis industry has drastically evolved ever since Colorado and Washington decided to legalize recreational cannabis five years ago. The two states were the first in the U.S. to fully legalize adult-use cannabis and since then, a total of 11 states and the District of Columbia have legalized recreational use. However, some regions are much more developed than others in terms of the overall consumer base and revenue delivered. For instance, Colorado reported total revenues of USD 683.52 Million during its first year of legalization in 2014. So far in 2019, from the months of January to September, the state has reported total marijuana sales of USD 1.31 Billion. On the other hand, Massachusetts, which is a much smaller marketplace, reported USD 138.9 Million in the six full months (November 2018 to May 2019) of operations. The staggering revenue margins are a direct result of Colorado’s early adoption in comparison to Massachusetts’ more recent foray into the industry. To put Colorado’s cannabis market into perspective, there were 364 dispensaries in the city of Denver alone in 2018. Among the 364 dispensaries, 169 locations were recreational or “retail marijuana stores,” while 195 were medical dispensaries. Overall, the number of dispensaries in Denver was more than triple all of the Starbucks and McDonald’s in the city, 111. Meanwhile, Massachusetts had 25 recreational dispensaries in operation as of August 2019, according to the Boston Globe. Generally, the discrepancy between Colorado and Massachusetts hints that the cannabis industry is still within its infancy stage and requires time to mature. And as more people begin to explore the cannabis marketplace, the industry is positioned to experience substantial growth in the shortcoming future. According to data compiled by New Frontier Data, the U.S. legal cannabis market was valued at USD 10.3 Billion in 2018. By 2025, the market is expected to reach USD 30 Billion while exhibiting a CAGR of 14%.
In 2018, the U.S. reported total cannabis sales of approximately USD 8.6 Billion to USD 10.0 Billion, according to Marijuana Business Factbook. Overall, the market was predominantly driven by sales of recreational cannabis as consumers spent between USD 5.3 Billion to USD 6.2 Billion. Additionally, the Marijuana Business Factbook projects that the recreational market will continue to outpace the medical market in the future. And by 2023, total U.S. cannabis sales are expected to fall in a range between USD 25.0 Billion to 30.4 Billion. And of the total sales, recreational cannabis is anticipated to account for USD 18.1 Billion to USD 22.0 Billion, while medical cannabis is expected to account for USD 6.9 Billion to USD 8.4 Billion. Overall, the growth of recreational market sales signals that more states could be moving towards legalizing adult-use, while existing legal regions are seeing their consumers base continually grow. The recreational market revenue is attributable to the number of dispensaries that are constantly emerging throughout the U.S. as well as e-commerce platforms. Notably, e-commerce platforms are becoming highly popular because consumers can simply receive their products in the mail as opposed to physically visiting a dispensary. However, due to federal regulations, businesses are not allowed to transport or mail cannabis to other states. On the other hand, CBD is allowed to be shipped throughout the U.S. following the passage of the 2018 Farm Bill, which legalized hemp-derived CBD products. Moreover, some businesses have created online portals where consumers can order their products online and simply pick them up at the store. The e-commerce platforms create a speedier process by allowing consumers to shop at the convenience of their homes, digitally pay for the purchase, and then have them delivered. Meanwhile, online portals can receive consumer payments digitally, eliminating the need to pay upfront at the store. Additionally, the digital payment systems track and maintain monetary transactions, which can simplify the financial structure of a business. “We’d like to see a solution to this cash management problem,” said Tim Sultan of the Arizona Dispensaries Association. “There’s just too much cash in the industry because banks can’t do business with us. We have dispensary owners paying their employees with cash, paying their vendors, paying their electric bills, going to APS with thousands of dollars, paying their taxes with tens of thousands of dollars cash, and just feeling really nervous walking up there with a bag full of cash.”
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