We’ve been following General Cannabis Corp. (OTCMKTS:CANN) for quite some time, in keeping with our penchant for the legal and medical marijuana industries. At the time we were discussing the record revenues that the company had recently reported.
With California’s legal cannabis kickoff coming on the first of the New Year, it’s a great time to circle back and talk about this play. The company refers to itself as ‘the comprehensive national resource to the regulated cannabis industry’, and that industry is about to grow enormously by virtue of California’s entry into the fray.
We recently learned that General Cannabis Corp. (OTCMKTS:CANN) signed a $955,000 two-year contract today to manage a grow facility in California. This represents the largest single contract the company has undertaken since inception. The Company also plans to provide significant other services, including hardware and supply procurement, in addition to the initial contract terms.
“We have been developing potential clients in California for the past year, where cannabis becomes legalized for adult use on Jan. 1, 2018,” said Robert Frichtel, CEO of General Cannabis. “California will become the world’s largest legalized and regulated cannabis market at the beginning of the new year. We are pleased to have gained a solid foothold in what is projected to be a $7 billion state-wide market.”
This new contract for Next Big Crop, the business consulting and management arm of General Cannabis, represents the second major California-based project for the company. Iron Protection Group, the firm’s security division, opened an office near Sacramento earlier in 2017.
Richard Cardinal, Managing Director of Next Big Crop added: “We have worked to tailor our offerings and scope of services to accommodate California’s evolving regulatory framework. This contract, along with our current management of one of Maryland’s premier medical cannabis cultivation facilities, represents Next Big Crop’s leadership positioning in cannabis operations and crop management nationwide. We anticipate additional major contracts throughout the first and second quarters of 2018, which should lead to significant growth for the year.”
“Revenue from this new contract alone for the two-year contract period would be nearly equal to Next Big Crop’s trailing 12-month operations revenue stream for the period ending Sept. 30, 2017,” said Michael Feinsod, General Cannabis Chairman. “The foundation for General Cannabis is now not only stronger but more expansive. We are very excited about the opportunities for business growth in 2018 and beyond. We continue to actively seek new opportunities in regulated markets across the country.” (Source: PR Newswire)
Unlike many cannabis companies out there that are limited to growing only, CANN boasts a well varied portfolio, which includes it cannabis industry reference services. However, as we were stating abive, now is the opportune time to begin a new growing operation, especially in California. A cannabis boom is about to take place there, and let’s not forget that Canadian legalization kicks off in July. Make no mistake about it; the reason we keep repeating ourselves on this particular subject is because of the absolutely massive potential that is just waiting to be tapped. We’ll be very anxious to see if CANN is one of those outfits that will take full advantage. Stay locked to Street Register for updates, and we’ll deliver important developments on CANN as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in CANN stock, short or long.