Multi-state Cannabis Potential Increases Through Brand Acquisitions and Bank Opportunities

NEW YORK, April 11, 2019 /PRNewswire/ -- Shifting public opinion on cannabis may have incentivized the House Financial Services Committee to pass the US Secure and Fair Enforcement (SAFE) Banking Act. Now with two-thirds of Americans supporting federal marijuana legalization, prominent Multi-State Operators (MSOs) stand to gain from a freer banking system such as Cannabis One Holdings Inc. (CSE:CBIS) (OTC:CAAOF), 1933 Industries Inc. (OTC:TGIFF) (CSE:TGIF), Curaleaf Holdings, Inc. (OTC:CURLF) (CSE:CURA), Green Thumb Industries Inc. (OTC:GTBIF) (CSE:GTII) and Trulieve Cannabis Corp. (CSE:TRUL) (OTC:TCNNF).

The SAFE Act's progress points to a shift that shows the US creeping closer to full legalization, much like its neighbors to the north. For an MSO like Cannabis One Holdings Inc. (CSE:CBIS) (OTC:CAAOF), which currently has a presence across 5 states (soon to be 10), any movement towards a single federal regulatory standard could be quite beneficial.

Presently, Cannabis One Holdings Inc. (CBIS) (CAAOF) manufactures cannabis-infused products in two facilities: Evergreen Organix (Nevada), and the newly acquired Honu (Washington).

Taking the company as an example, having the ability to manufacture goods in one state, and to ship them to and sell them in another state significantly opens up their market size. Being able to sell any of their products in all of Cannabis One's dispensary chain The Joint stores would be quite beneficial.

Though the SAFE Act has yet to be scheduled for consideration by the entire House, having 150 sponsors already thanks to the House Financial Committee is a great start. It is expected that the Act will come to a vote soon, after a review by the House Judiciary Committee.

Capitalizing on the Current Multi-State Landscape 

By acquiring the Washington-based Honu, Cannabis One Holdings Inc. (CBIS) (CAAOF) added to its growing portfolio of established and successful brands in multiple states.

How successful is Honu? Since its inception, the brand has accumulated a series of accolades, including Best Edible Company, Best Cannabis Brand Design, and Best Sweet Edible in Washington. Cannabis One Holdings Inc. projects Honu's 2019 system-wide brand revenue to reach US$20.3 million.

"Following on our recent announcement to acquire the 'Fat Face Farms' brand, CBIS believes the addition of the 'Honu' brand family to our growing catalogue of IP further validates Cannabis One's stated strategy of securing 'Best-of-Breed' brands." Mr. Mascio continued, "We anticipate that the market popularity and positive reception of the Honu brand will provide yet another catalyst for Cannabis One, opening the door for us to explore new manufacturing partnerships – with opportunities for the expansion of our own manufacturing infrastructure – into new, state-legal markets."