Las Vegas Archives - Green Market Report

Debra BorchardtJune 7, 2021
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6min15370

Nevada seemed like a sure bet before the pandemic for cannabis companies. A seemingly never-ending stream of tourists from states where cannabis isn’t legal or the legal product offerings were meager. Several companies made huge investments in the state, especially in Las Vegas, to capitalize on tourists happy to plunk down big bucks to sneak some products back home. Of course, it isn’t legal to take cannabis products across state lines, but that doesn’t stop many tourists from taking the risk. The pandemic, of course, caused that market to crash as tourism dried up and the operations were left to depend on the business of residents only. Now it looks like the cannabis comeback is underway.

Planet 13 Holdings Inc. (CSE: PLTH)(OTCQB: PLNHF) reported record sales in May of $11.2 million with gross margins above 50%. The company said that May represents the third consecutive month of record sales as Las Vegas and America return to normal. In a statement, Planet 13 said that hotels across the Las Vegas strip have reported having hotel rooms sold out for the foreseeable future and Planet 13 expects continued strong sales on the back of increased tourist traffic. In May, Planet 13 reported that its first-quarter revenue rose 41% to $23.8 over 2020 before the pandemic had really settled in and lockdowns began. So, there is a great deal of optimism about the second quarter.

“Tourism and business are looking up in Nevada and our operations are mirroring this trend by experiencing consistent, month-on-month growth. We are thrilled to share that the momentum gathered over the past few months is continuing, with yet another month of record sales in May. Planet 13 has built a successful retail cannabis brand that resonates with Americans. We remain confident about the continuation of this upward trend as Las Vegas reopens to its full potential as well as the upcoming opening of our Orange County SuperStore in July,” said Larry Scheffler, Co-CEO of Planet 13. The company is opening its California Super Store on June 24, which will feature electronic waves, a 16-foot octopus, an Instagrammable Planet 13 bus, and 50 registers.

Consumption Lounges

One of the biggest issues that Las Vegas had faced with cannabis sales was the lack of anywhere for the tourists to consume. Flower sales are always the biggest seller, but there was nowhere to smoke. Hotels often don’t allow smoking in rooms or on balconies. While cigarette smoking is allowed in some spaces, cannabis smoking isn’t. This caused the state to pass Assembly Bill 341 in early June that allows adults 21 and older to purchase and consume adult-use cannabis products on-site at any licensed “cannabis consumption lounge.”

According to NORML, “The measure establishes regulations for two distinct types cannabis consumption lounges. One group would be reserved for existing marijuana dispensary license holders who can then apply to operate an on-site cannabis consumption lounge. The other designation would be for new, independent businesses to apply for a license to operate an “independent cannabis consumption lounge” which is not attached to or adjacent to an existing retailer. The bill also provides for reduced license application fees for qualifying social equity applicants. Local governments can enact policies restricting access to cannabis consumption lounges under this bill.”

Prior to the legislation, only NuWu Cannabis in Vegas featured a tasting room within its 16,000 square foot marketplace. Since the dispensary is located on sovereign land owned by the Las Vegas Paiute Tribe, it is not subject to the same restrictions as the rest of the state. Instead, NuWu is self-regulated through the Las Vegas Paiute Cannabis Authority. As such, there are no Nevada marijuana taxes, no waiting rooms, and no reason not to open a consumption lounge. However, the location is north of the Fremont strip so consumers must travel about 15 minutes by car to get there.

Planet 13 said it has reserved an expansive dedicated space within the Las Vegas SuperStore for a consumption lounge which it will look to get built as soon as possible.

“We are thrilled that after the long wait, Nevada will finally be home to consumption lounges. We’ve long believed that tourists needed a safe, legal, and enjoyable place to consume cannabis and have been planning for a consumption lounge at the SuperStore since the bill was originally proposed two years ago,” said Bob Groesbeck Co-CEO of Planet 13. “Our SuperStore is one of the only dispensaries with the space on site and the proximity to the Las Vegas Strip to create a truly Vegas-style club. As with the rest of our dispensary, we look forward to setting the bar and showing the industry what is possible when your goal is to Out Vegas, Vegas.”


William SumnerOctober 30, 2018
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4min20570

What is the economic impact of adult use cannabis? In many U.S. states, that is a difficult question to answer. Hoping to divine the answer, the Nevada Dispensary Association (NDA), which represents approximately 80% of cannabis dispensaries in the state of Nevada, commissioned a report by RCG Economics to find out; and the results were surprising.

To fully ascertain the scope of the cannabis industry’s economic effect on Nevada’s economy, RCG implemented several strategies. To start, RCG electronically sent out a survey to NDA members; requesting information such as tax collections, gross sales, wages, benefits, and employment.

Next, RCG ran an economic benefits analysis (EBA) and compared the data to existing figures. An EBA typically involves analyzing direct benefits, indirect benefits, and induced benefits. Finally, RCG prepared a fiscal benefits analysis, which examined statistics such as state-level excises taxes, retail sales taxes, and the payroll tax.

After collating the data, RCG found that legalized cannabis will have a tremendous effect on the Nevadan economy.

Economic Benefits

Currently, adult use cannabis sales account for 63% of all cannabis sales in the states, while medical makes up the remaining 37%. Between 2018 and 2024, the state’s adult use cannabis industry is expected to generate an estimated $8 billion of economic activity.

Additionally, the industry is expected to support approximately 67,000 jobs in the same period. Cannabis regulations are also forecasted generate roughly $3.6 billion in direct, indirect, and induced labor income.

Direct spending in the cannabis industry is also projected during this period to have a multiplier effect of 1.63; which means that for every $1 spent on retail cannabis, another $0.63 will be generated throughout the state economy.

The retail cannabis industry is expected to produce approximately $989.7 million of total output activity in 2018 alone; representing roughly $60.7 million in sales. By 2024, that total is expected to rise to approximately $1.2 billion. Similarly, the industry is projected to support around 8,300 jobs in 2018, but by 2024 that number is expected to grow to 10,200.

Fiscal Benefits

Between 2018 and 2024, Nevada’s cannabis industry could potentially create roughly $1 billion in fiscal benefits for the state. The largest chunk of that figure is from sales and use tax accounts, which is projected to generate $349.4 million. The second largest contributor is the retail excise tax ($336.2 million) and the wholesale excise tax ($212.3 million).

For 2018, the industry is expected to generate approximately $113.1 million in fiscal benefits. By 2024, that number is expected to swell to $158.7 million annually.

RCG is quick to point out that these figures are only estimations based upon the available data and may change depending on outside economic factors. However, external economic factors or not, one thing is clear for the report, and that is that the legal cannabis industry will have a tremendous impact on the state of Nevada’s economy in the coming years.

 


Jack SmithOctober 23, 2018
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5min28900

A new study shows that 69.5% of Las Vegas residents approve of legalized marijuana. While marijuana is legal in the state, usage has now surpassed more than the 50 percent mark, implying that people are becoming more comfortable with it as time goes on.

The study, produced by Consumer Research Around Cannabis for Green Market Report, shows that 52.2 percent of approximately 1.4 million respondents approve of marijuana use for both recreational and medicinal purposes. An additional 16.7 percent approve of it for medicinal use, though they have no opinion or disapprove of recreational use, while 0.6 percent approve of recreational use and have no opinion or disapprove of medicinal usage.

Just 14.7 of respondents disapproved of cannabis in both recreational and marijuana settings and 12.2 percent did not have an opinion either way.

Marijuana became legal for recreational use at the start of 2017 and acceptance of it has jumped since late 2017, as 52% of respondents said they had used or bought it in the fall, up from 44 percent in the spring.

Who’s Buying

Cannabis consumers range all parts of the spectrum, covering a wide range of demographics. Nearly half of the adult population 21 and over, 772,000, said they were cannabis consumers. They are approximately 45 years in age, have an average household income of $53,263, and have an average home value of just over $278,000. Forty-one percent of consumers are married, while 49 percent have kids at home.

By comparison, the 1.49 million people living in the market average 47 years old, 45% are married and 46% have children, making the numbers comparable.

“The percentage of adults A21+ that are currently using cannabis for medical reasons has increased to 18.1% from 14.3%,” the study said. “Top health reasons for consuming cannabis include: treating temporary/minor pain, chronic pain management, alleviating mental health issues, to assist with sleep and to treat a non-pain medical condition.”

18% of the consumer in the greater Las Vegas area have been buying cannabis in order to treat addiction problems. This could be for alcohol or opioids. According to the most recent data, Nevada ranks in the top ten states for drug and alcohol abuse. Nevada is also the second in the country for non-medical use of hydrocodone and oxycodone. Per capita sales of oxycodone have increased 366% in the last 10 years, while sales of hydrocodone have increased 233%.

Actual Sales

For the fiscal year 2018 (July 2017-June 2018), the Nevada Department of Taxation reported that it collected $27.3 million in wholesale cannabis taxes and $42.5 million in retail taxes. Taxable sales reported by adult-use retail stores was $529.8 million.

If spring is considered April, May, and June, sales increased from $47.5 million in April to $48.3 million in June. Nevada has only reported sales through July 2018, but the numbers continue to climb to $48.4 million. If the CRAC is accurate then the state is in for a very generous fall.

The Vegas cannabis market continues to grow as big retailers like MedMen continue expanding their retail footprint and the new enormous Planet 13 dispensary prepares to open on November 1. This dispensary will cover 16,500 square feet inside a 40,000 square foot cannabis entertainment destination. A cannabis superstore is surely going to generate big sales.


StaffMay 31, 2018
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9min10760

Santa Ana, CA, May 31, 2018 /AxisWire/  Kush Bottles, Inc. (OTCQB: KSHB) (“Kush Bottles” or the “Company”), a leading provider of packaging, suppliesvaporizers, hydrocarbon gases, solvents, accessories and branding solutions for the regulated cannabis industry, today announced it has signed a lease for a new warehouse facility in Las Vegas to meet demand from the consumer market as well as support the current and new businesses entering the industry or expanding operations.

With the 13,000 square foot facility, expected to be operational mid-June, Kush Bottles expects to minimize the time taken to receive and distribute packaging and supplies, streamline its logistics and access more storage space for high-demand products with rapid turnover times, such as exit bags, cartridges, and pre-roll tubes. By opening its first local distribution facility in Las Vegas, the Company aims to become a stronger partner to some of the most advanced cannabis cultivation and retail facilities in the industry, which are located in Nevada. This warehouse will complement the existing Kush Bottles hazmat facility used today to service the Las Vegas and greater Nevada market with a variety of hydrocarbons, in which businesses use to turn cannabis plants into oils.

“The new Las Vegas facility will further solidify Kush Bottles’ commitment to the city’s thriving, local cannabis community and strengthen our own mission to be the go-to partner for cannabis companies as they scale their operations,” said Kush Bottles CEO Nick Kovacevich. “The fluctuating demand from the tourism and organic growth in the cannabis market means that a lot of our partners are having a difficult time forecasting their packaging and supply needs. By having a local facility, we give our clients the added flexibility of faster delivery as well as offering on-site pick up if that’s what their business dictates.”

As one of the busiest tourist destinations in the country, people from all over the world are being exposed to cannabis, sometimes for the very first time, through Las Vegas dispensaries. With consumer demand at an all-time high in Las Vegas, retailers in the state have already sold nearly $200 million in cannabis in the first six months after the legalization of its adult-use cannabis sales, fueled by both tourists and locals. ¹

To be added to the distribution list, please email ir@kushbottles.com with “Kush” in the subject line.

References

¹ “McVey, E.” Tourism drives hot start to recreational marijuana sales in Nevada, but where’s the ceiling?” Marijuana Business Daily. Retrieved May 29th, 2018 from https://mjbizdaily.com/chart-tourism-drives-hot-start-recreational-marijuana-sales-nevada-wheres-ceiling/

###

About Kush Bottles

Kush Bottles, Inc. (OTCQB: KSHB) is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry. Founded in 2010 as a packaging and supplies company for dispensaries and growers, Kush Bottles has sold more than 1 billion units and now regularly services more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe. The Company has facilities in the three largest U.S. cannabis markets and a local sales presence in every major U.S. cannabis market.

Kush Bottles aims to be the gold standard for responsible and compliant products and services in the cannabis industry. Kush Bottles has no direct involvement with the cannabis plant or any products that contain THC.

The Company has been featured in media nationwide, including CNBCLos Angeles TimesTheStreet.comEntrepreneur, and business magazine Inc.

For more information, visit www.kushbottles.com or call (888)-920-5874.

Forward-Looking Statements

This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent the Company’s current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the opinions of the Company’s management only as of the date of this release. Please keep in mind that the Company is not obligating itself to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as: “potential,” “expect,” “look forward,” “believe,” “dedicated,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by the Company herein are often discussed in filings the Company makes with the United States Securities and Exchange Commission (SEC), available at: www.sec.gov, and on the Company’s website, at: www.kushbottles.com.

Kush Bottles Contacts

Media Contact:
Anne Donohoe / Nick Opich
KCSA Strategic Communications
212-896-1265 / 212-896-1206
adonohoe@kcsa.com / nopich@kcsa.com

Investor Contact:
Phil Carlson / Elizabeth Barker
KCSA Strategic Communications
212-896-1233 / 212-896-1203
ir@kushbottles.com

 


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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