This one company can do more to move California’s marijuana profits into the legal light than any politician in the state…

It’s no secret that California legislators have mucked up many aspects of cannabis legalization in the Golden State.

For starters, as I told you about back in December, they left it up to California’s 482 cities and 58 counties to determine what types of cannabis business activities they would allow in their jurisdictions.

What this means is that while a municipality may allow cannabis businesses within its incorporated limits, the county could prohibit businesses in the unincorporated regions.

Effectively, laws can change at city limits. So, despite legalization at the state level, there is still an all-out prohibition on operating a cannabis business of any kind in two-thirds of the state.

Rather than deal with the resulting crazy quilt of regulations from jurisdiction to jurisdiction, many customers will go to their old, black-market dealers and many businesses will have little luck with licenses.

The government also went overboard on taxes. In some parts of California, state, local, and excise taxes could exceed 40% – a major disincentive to buying legally.

Bad laws like these keep revenues out of the pockets of legitimate cannabis businesses. They also hold back gains investors can make on their cannabis stocks.

But because of the actions of a single, privately-held enterprise, the siphoning of revenues into illegal channels could slow down to a trickle.

And the result could shoot legal cannabis revenues higher by as much as 50%…

Offsetting the Failures of the War on Drugs

One of the big promises of cannabis legalization is that it creates the opportunity for more people to benefit from the birth of an industry.

The “War on Drugs” has been a complete failure. The starkest being its disproportionate impact on many individuals and communities.

To help fulfill that promise, Weedmaps – an online directory that connects its users with marijuana dispensaries – has allowed illegal operators to advertise. Its position has been that government restrictions and scarce capital have made it “nearly impossible to participate in the legal market.”

But last week, the company announced that later this year it would no longer allow unlicensed dispensaries on its platform.

Without an easy way to access customers, black-market operators will not draw nearly the same amount of business, with some estimating that half will shut down.

Instead, the company will support unlicensed businesses in their efforts to become licensed. For instance, Weedmaps will train owners on compliance regulations, how to get licensed, and provide professional support. And once a business gets a license, it can advertise on the site for free for up to one year.

One cannabis niche is on track to grow 15X FASTER than the overall market… and you can get started with this tiny CBD company for less than $3. Learn more here.

With the end of this support for black market sales, legal cannabis businesses operating in California can expect a surge in revenues.

And this is especially true for businesses like Origin House (CSE: OH, OTC: ORHOF).

Boosting the Legal Market

Back in April, Origin House was acquired by Cresco Labs (CSE: CL, OTC: CRLBF), though the transaction has yet to close.

And central to Origin House’s California-focused strategy is owning distribution assets.

In California, all sales of cannabis products must go through licensed distributors. These distributors are private companies and serve several roles. For example, only distributors can transport marijuana products. They are responsible for all quality assurance packaging and labeling of their products, and they collect all cannabis taxes for the state.

Distributor licensees touch all cannabis products sold in the state. This makes them toll takers in the California cannabis market.

By acquiring key distribution licensees to support a large brand portfolio, Origin House will be well positioned to address the fragmented and chaotic California cannabis market with a comprehensive and professionally run structure.

And the sharp policy shift from Weedmaps will force even more revenue through Origin House’s cannabis tollbooth.

You’ll find plenty of other ways to profit from the migration of cannabis sales to legal channels in our NICILytics Database. With the right access, you are free to uncover those California-focused opportunities for yourself.

Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. There’s a new method that allows everyday folks to tap into the trillion-dollar potential of the cannabis market – one that didn’t exist even a few months ago. It could be one of the fastest ways to navigate the cannabis market for enormous profit potential. In fact, data shows you could have used it to make 7,500% in 4 days… 3,113% in 4 days… even 3,400% in a single day. Here’s your proof


Comments

10 responses to “Private Enterprise Boosts California’s Legal Marijuana Profits”

  1. Greg,
    Thank you so much for all the research and work that you do for all of us investors in the cannabis industry! You are doing an amazing job and it is greatly appreciated!
    Clare

  2. I get information from Greg, but so far no answers to my questions.
    Question 1: What happened to Steven White, the former CEO of Harvest Health & Recreation (HRVSF)?

  3. NICI does a great job of keeping its members updated on the lucrative but volatile cannabis market. The entire market is in decline due to several factors. None of which we can control. Many have panicked and sold off making the market further decline.
    I believe the cannabis market itself is solid with lots of room for upward growth. It’s said that what goes down will come back up and while this is true for many…some wont come back, or will not come back as strong.
    The trick is to find the right companies and stick with them

  4. I am a member in good standing,however at this time I am behind on every
    stock I have bought.I still believe that you are going to do right by all your members.Just thinking out loud Tom Gentile is touting his new deal like crazy
    I dont think I want to spend that much for his method,however, if I could get what he is selling on a trial basis to see if it is any good if,however I like one choice,I should be able to pay for his program from the profit.I know you cannot do this because of the people that already bought in.If you could do this and it was successful you would get tons of new subscribers. This is just a thought that I had. I am only looking for one choice only. you do not have to print this correspondence.
    thanks for your kind attention,
    Jim Gill

    is

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