Green fireworks lit up the Las Vegas sky at midnight as reported by CNN, CBS and others. Nevada now allows adults 21 and older to purchase and possess up to one ounce of cannabis after the new law was approved by voters in November of 2016. An estimated two thirds of all purchases will come from tourists visiting the state.
Several reports suggest that many of the 44 licensed retail outlets in Nevada had “customers lined up around the corner,” with 39 of those locations being right in the city of Las Vegas, where the Company’s asset, Alternative Medicine Association is located. Nevada now joins Alaska, Colorado, Oregon and Washington with a new recreational law and regulation for adult-use cannabis. There are currently 29 states with a medicinal program in place already, and more expected soon. Colorado alone represented over one billion dollars in sales in 2016, which generated over two hundred million dollars in tax revenue for the state. It also created over 18,000 full-time jobs there last year alone and sales continue to grow at over 30% per year. We feel the Company is very well positioned with Nevada being a very highly anticipated new market.
State Senator, Tick Segerblom, considered to be the “godfather of the marijuana movement” in Nevada considers the new legal cannabis market to be the most heavily regulated industry in the whole state, expected to generate well over $60 million in tax revenue over the next two years. The proceeds from the 15% cultivation tax on all cannabis products in the state will go toward schools, and a 10% tax collected from recreational cannabis sales will go toward a rainy day fund for the state.
Mr. Mark Zobrist, director of Alternative Medicine Association, LC, the Company’s 91% subsidiary, commented, “We expected a good turnout to kickoff the July 1 adult-use celebration, but lines were still exceeding 100 people, 6 hours later at some locations. We were making deliveries to stock retail stores until 11pm Friday night. Our grower commented that at this rate the state could be out of cannabis by the end of the month.”