Their marijuana industry has been rapidly changing over the course of the past several years, but new updates in legislation and the changing public sentiment have all combined to make the market broader than ever. As most eyes have been on Canada given the new bill is known as C-45, or the Cannabis Act, which has effectively legalized the use of recreational cannabis throughout the nation, there is a lot of business going on in their southerly neighbor. Many companies in the Canadian market have in fact been moving down into the California industry due to how much potential it has to change the whole of the market.
California legalized the use of cannabis for recreational purposes back in the beginning of this year, but estimates have already shown that the cannabis market could potentially hit as much as $3.7 billion by the end of this year. The same estimation has also shown that the market could reach as much as $8 billion by the end of 2021, which is not all too far away. These numbers have been helping to attract a whole new range of investors to get into the space due to the influx of capital and ideas that are flooding in.
The company CannaRoyalty Corporation (CRZ:CNSX) is one of a handful of companies that are working to bring their production and distribution to California, and have since increased their market share by a large amount. According to one report “The company recently acquired RVR, a large-scale distributor of both medical and recreational cannabis, Alta Supply, a smaller medical marijuana company, and Kaya Management, an edibles and vaporizer producer. In April 2018, it also acquired Flora-Cal Farms, a licensed ultra-premium cannabis producer.” A large amount of acquisitions have been occurring throughout the market which is increasing the amount of partnership and ultimately helping to grow the space to a larger amount than any thought possible.
The company High Hampton Holdings (CSE: HC) has been working to gain momentum in the industry by advancing the amount of space they have in the California market. The company has been doing this through the use of acquisitions and partnerships with various companies in California. According to one report “Most recently, the company expanded its cannabis distribution network through the acquisition of 420 Realty LLC, which has multiple permits to vertically integrate in the City of Cudahy, California.” The company released a statement recently also that “This transaction further expands High Hampton’s strategic cannabis distribution network in California and will ultimately allow us to bring more products and quality brands online as we advance this and our other assets. With the previously announced acquisitions of CaliGold and Bravo Distro expected to close soon, High Hampton will be well positioned with distribution hubs, product, and cultivation opportunities across California.”
The California market continues to present a large amount of opportunity for Canadian companies looking to get involved in such a quickly growing part of the industry. California has also seen a large amount of their businesses beginning to move into the Canadian market due to how far their legislation has come in such a short period of time. All of these factors add up to help illustrate how much participation there is in growing the whole of the cannabis industry. The cannabis market, however, is still very young relative to other industries, which means there is a lot of room to grow over the course of the next few years. The hopes are high that in the coming future, more of these partnerships can continue to build, aiding the growth of the market overall.