Title: New Frontier Data Downgrades #CA #Cannabis Sales Projections by $2 Billion
Author: Investor Ideas
Date: 22 May 2018
Washington – May 22, 2018 (Investorideas.com Newswire) New Frontier Data, the authority in data, analytics and business intelligence in the cannabis industry, has refined our state market projections for California in light of the state’s recent lower than expected cannabis excise-tax revenues for Q1 2018. The state collected $33.6 million between January 1 and March 31, which put them significantly behind pace to meet original expectations for collecting $175 million within the first six months of 2018. We have reduced our latest sales projections for 2018 from $3.8 billion to $1.9 billion. And by 2025, our forecast for total California sales to be $4.72 billion instead our previously projected $6.7 billion.
“It is quite clear that the new adult use regulations have made it more difficult than anticipated for the legal market to get established and for consumers to transition to from the illicit market. Given the number of local government bans on cannabis businesses, we are not seeing the same kind of conversion rates that we have seen in other legal markets,” said Giadha Aguirre De Carcer, New Frontier Data CEO and Founder.
Based on our revised projections, the 2018 California legal cannabis market will be worth an estimated $1.92 billion and is projected to grow at a compound annual growth rate (CAGR) of 13.7%, to reach almost $4.72 billion by 2025. The medical market is projected to decline at -5.4% CAGR through 2025, shrinking from $1.12 billion in 2018 to an estimated $760 million in 2025. During the same period, adult use sales are projected to grow at a 25.5% CAGR, from $805 million to $3.96 billion.
To adjust our projections, New Frontier Data looked at two key aspects of the California market; our analysts redefined what a legal medical patient is and lowered the conversation rate for illicit market consumers transitioning to legal adult-use market consumers.
Title: Simi Valley and Thousand Oaks consider pot business tax ballot measures
Author: VC Star
Date: 23 May 2018
Simi Valley is taking steps, like next-door neighbor Thousand Oaks, to place a measure on its Nov. 6 ballot that will ask the city’s voters to approve taxing marijuana businesses in town.
Fillmore is currently the only city in Ventura County with a cannabis business tax, which was approved by that city’s voters in 2016. The City Council banned all commercial marijuana activities the following year, but on Tuesday night, it was scheduled to consider placing a measure on the city’s November ballot which, if it passes, would allow limited medical marijuana cultivation that would be taxed.