- MCOA is building a role in cannabis and hemp industry through strategic network
- Growing legal cannabis markets estimated to reach $37.3 billion by 2024
- Hemp market estimates foresee growth into the billions by 2020
Amid the drive of several states to put the legal framework for recreational marijuana use into place, Marijuana Company of America, Inc. (OTC: MCOA) is building upon its vertically integrated business strategy by taking a unique approach to how companies within the industry position themselves in the marketplace.
On January 1, recreational marijuana use will become legal in California (http://dtn.fm/CzFD2), which will complete the regulatory picture for cannabis use on the West Coast, since Washington, Oregon and Alaska legalized the drug earlier this year. Those states join others across the country, including Colorado, Nevada, Massachusetts and Maine, where recreational use is allowed or will be allowed by next year. Canada is also expected to legalize recreational use next year.
That trend, in addition to the existing regulation of medicinal uses of marijuana extracts in most of the United States, is fueling a booming market that analysis portal Statista predicts may exceed $37.3 billion by 2024. While other estimates may be a bit more conservative, all agree that the demand for legalization is driving an industry with immense potential for profit.
Pursuant to an agreement signed earlier this year, Marijuana Company of America, Inc. and Bougainville Ventures are constructing and will deliver a turnkey state-of-the-art cultivation and processing facility in Oroville, Washington. The 30,000 sq. ft. greenhouse will house a tier-3 production and processing I-502 tenant with decades of experience in cannabis cultivation. Anticipated completion of funding for the project is expected in Q4 2017.
Analysts are also forecasting a boom in the hemp industry. Hemp Business Journal predicts that the sector will rise from $688 million in 2016 to a little over $2.2 billion by 2020 (http://dtn.fm/01QpT).
MCOA’s wholly own subsidiary, hempSMART, is developing all-natural formulations that include non-THC industrial hemp-based cannabinoids with distribution through a unique marketing and affiliate-based program. The founders of MCOA have developed the hempSMART model around the concept of building a global network of diverse and experienced affiliate marketers.
MCOA also signed a joint venture with Canadian public company Global Hemp Group, Inc. (CSE: GHG) (OTC: GBHPF) to conduct industrial hemp trials in New Brunswick, Canada. The companies have retained hemp producer Space Cowboys, Inc. (“SC”) as advisers on the trials. SC has extensive expertise in growing high cannabinoid (CBD & CBG) hemp for extraction and will assist GHG and MCOA in maximizing cannabinoid production as the group ramps up cultivation operations in New Brunswick in the coming years.
“We are at a crossroads of global legalization of our industry,” MCOA CEO Donald Steinberg stated in a news release (http://dtn.fm/mzeC5). “The world has a massive need for cannabis and hemp products and services. This process of countries shifting to a legal cannabis and hemp structure is something that will occur only once in the history of a country, and we are proud to be a frontrunner in the industry.”
For more information, visit the company’s website at www.MarijuanaCompanyofAmerica.com
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