Valuations Continue to Climb for U.S. Cannabis Companies - Seite 2

Selfe's group is recognized as one of the top investment bankers in the cannabis industry. What Infor is noticing is that Canadian companies have their own limitations and restrictions as well.

"In many ways, the U.S. multi-state operators have a significant competitive advantage now over the Canadian companies," Selfe added.

New markets are opening up across the country, including the "Garden State" of New Jersey, which is expected to be worth US$850 million. A vote in the state on legalization could be as early as next month.

Getting out ahead of the rush, Chemistree Technology Inc. (CHM - CHMJF) has already gone ahead and secured a potentially powerful footprint for its products in the state—through a deal with Applied Cannabis Sciences of New Jersey that will likely open up the company's flagship Sugarleaf brand to the East Coast.

The first round of New Jersey dispensary applications is expected to be for 2020. Applied Cannabis Sciences has been established by a team of seasoned professionals from the legal medicinal, and adult-use cannabis industry whose collective experience exceeds 50 years and includes over 20 cultivation, processing, and manufacturing licenses across four states (WA, OR, CA, and CO) within the USA.

"We are really happy about establishing a partnership with this experienced group and the potential to expand Chemistree's presence outside of California and Washington state and ultimately introduce our signature brand Sugarleaf to the large New Jersey consumer base." Said CEO of Chemistree, Karl Kottmeier. "New Jersey is home to over nine million people currently being served by only 12 cannabis operators in its medical program. New Jersey is a logical place for Chemistree to expand into and bring the Sugarleaf brand to the New Jersey market."

Currently the Sugarleaf brand, which Chemistree Technology Inc. has the global brand and marketing rights to, is being marketed in both California, and in Washington, where it was originally developed.

Chemistree Technology Inc. (CHM) (CHMJF) has a significant presence in both markets. The company officially entered the California market back in December of 2018, solidifying the purchase of 9.55 acres in California's prominent Desert Hot Springs Cannabis Cultivation Zone. The total plan for the facility includes two 64,000 sqft greenhouses, and a 40,000 sqft processing and product development facility. Overall, the site has the development potential for 205,000 sqft of greenhouse space in three separate buildings and would produce ~50,000lbs per year.