Nevada Exceeds Cannabis Sales Expectations

Cannabis in the United States is slowly becoming more commonplace. States such as Colorado and Washington began sales of recreational cannabis in 2014 and since then 7 other states, among them Nevada and California, as well as the District of Columbia have legalized cannabis for adult-use. In fact, only 4 states in the country have no recreational nor medical cannabis sales, including CBD.

After over a year of sales, Nevada has emerged as “the gold standard” according to Nevada’s Taxation Department Director, William Anderson, as quoted by The Associated Press. The reason being the state’s relative success at implementing sales when compared to states like California and Washington. California’s cannabis market was plighted by disruptions and Washington’s started slowly, with its first several thousands of sales comprised of unrefined flower. In comparison, Nevada issued licenses to already licensed medical establishments instead of waiting a year to roll out in an effort to avoid creating a black market. The state also set limits on how many dispensaries licenses could be given out based on population, and initially only allowed established liquor distributors to distribute the plant, although the rules has been relaxed since. As a result, Nevada saw sales of USD 195,467,170 within the first six months and USD 529.9 Million in the first year. By comparison, Colorado reported USD 114 Million in the first 6 months and Washington recorded sales of just USD 67 Million. Colorado boasts a population of 5.6 Million people, Washington 7.4 Million and Nevada achieved greater sales with a population of just 2.99 Million.

One of the dispensaries in Las Vegas, Oasis Cannabis, a subsidiary of CLS Holdings USA Inc. (OTCQB: CLSH) released some of its first-year results. The dispensary served over 127,000 customers, with 22% of total sales made to medical patients. Additionally, CLS Holdings CEO and Chairman, Jeff Binder, said the Oasis operation generates USD 850,000 in gross monthly revenue and that there are plans “to expand the number of Oasis Cannabis retail store locations in Nevada to at least four by the end of 2019.” The state of Nevada has recently announced applications for additional dispensary locations will open September 7th and last until September 20th and the Company may yet apply for additional locations. Furthermore, the Company recently “closed on two oversubscribed funding rounds. A Canadian round of CAN 13.0 Million and a U.S. round of USD 5.75 Million,” which it plans to use to continue the build out of its operations in Las Vegas as well as update the Oasis Cannabis location.

After a year of sales Nevada has established a “golden” reputation in the cannabis market and sales have outstripped previous estimates by 140% after recording over half a Billion in taxable revenue. As more markets continue to emerge and more states legalize the sale of adult-use cannabis, the market may continue to exceed estimates and companies that are working on properly positioning themselves for national growth could find themselves exceeding expectations as well.

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1 Comment
  1. Eric Ng 3 weeks ago
    Reply

    Taxable cannabis sales statewide totaled $529.9 million and raised nearly $70 million in tax revenue. IMO the forecasts for Nevada’s cannabis sales were way too low to begin with.

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