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1.46 MB
Extraction Summary
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People
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Organizations
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Locations
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Events
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Relationships
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Quotes
Document Information
Type:
Investment report / market analysis
File Size:
1.46 MB
Summary
This document is page 4 of a Cannabis Investment Report by Ackrell Capital dated December 2017. It analyzes the U.S. state-legal cannabis market, estimating a total value of $8.0 billion with specific breakdowns for California, Colorado, Washington, and Oregon. The text discusses the legal conflict between state legalization and federal prohibition, noting the lack of bankruptcy protections and banking access, while highlighting DOJ and Treasury policies that have allowed the industry to operate. The document contains the Bates stamp HOUSE_OVERSIGHT_024640, indicating it is part of a House Oversight Committee production.
Organizations (6)
| Name | Type | Context |
|---|---|---|
| Ackrell Capital, LLC |
Creator of the investment report
|
|
| U.S. Department of Justice |
Mentioned regarding enforcement policies
|
|
| U.S. Department of the Treasury |
Mentioned regarding reporting policies for banks
|
|
| Congress |
Mentioned regarding passing laws creating space for the industry
|
|
| FINRA |
Ackrell Capital is a member
|
|
| SIPC |
Ackrell Capital is a member
|
Locations (5)
| Location | Context |
|---|---|
|
General market location
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Market share: $3.2B
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Market share: $1.5B
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Market share: $929M
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Market share: $470M
|
Relationships (1)
Ackrell Capital
→
Membership
→
FINRA / SIPC
Footer: Member FINRA / SIPC
Key Quotes (4)
"The U.S cannabis industry has proven adept at navigating this federal-state conflict, and is experiencing rapid growth despite it."Source
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Quote #1
"We estimate that the 2017 U.S. state-legal cannabis market was $8.0 billion, with more than four million consumers."Source
HOUSE_OVERSIGHT_024640.jpg
Quote #2
"Current federal law effectively prohibits all cannabis use and all commercial cannabis activity in the United States."Source
HOUSE_OVERSIGHT_024640.jpg
Quote #3
"Enforcement policies published by the U.S. Department of Justice have unofficially invited cannabis business to proceed if certain conditions are respected."Source
HOUSE_OVERSIGHT_024640.jpg
Quote #4
Full Extracted Text
Complete text extracted from the document (2,108 characters)
ACKRELL
CAPITAL
Cannabis Investment Report | December 2017
CAPITAL
Cannabis Investment Report | December 2017
The U.S cannabis industry has proven adept at navigating this federal-state conflict, and is experi-
encing rapid growth despite it. We estimate that the 2017 U.S. state-legal cannabis market was $8.0
billion, with more than four million consumers. While the overall state-legal market has grown sig-
nificantly, the addressable market has been constrained due to the lack of access to purely recreational
consumers and the sometimes-narrow scope of medical conditions that qualify a patient for access to
medical cannabis. The breakdown of this market estimate by state is shown in the following chart.
encing rapid growth despite it. We estimate that the 2017 U.S. state-legal cannabis market was $8.0
billion, with more than four million consumers. While the overall state-legal market has grown sig-
nificantly, the addressable market has been constrained due to the lack of access to purely recreational
consumers and the sometimes-narrow scope of medical conditions that qualify a patient for access to
medical cannabis. The breakdown of this market estimate by state is shown in the following chart.
2017 U.S. State-Legal Cannabis Market Estimate
Other States
$1.9 B
$8.0B
California
$3.2 B
Colorado
$1.5 B
Oregon
$470 M
Washington
$929 M
Source: Ackrell Capital
$1.9 B
$8.0B
California
$3.2 B
Colorado
$1.5 B
Oregon
$470 M
Washington
$929 M
Source: Ackrell Capital
U.S. Federal Law
Current federal law effectively prohibits all cannabis use and all commercial cannabis activity in the
United States. Producing, selling and possessing cannabis are federal crimes. No cannabis-derived drug
has ever been federally approved for use in treating any medical condition. Otherwise legitimate busi-
ness transactions conducted by cannabis companies—and their banks, for those who can access bank-
ing services—are legally suspect. Certain intellectual property and bankruptcy protections critical to
many U.S. businesses are not available to cannabis companies. Cannabis companies pay federal income
tax at effective rates significantly higher than other businesses.
Current federal law effectively prohibits all cannabis use and all commercial cannabis activity in the
United States. Producing, selling and possessing cannabis are federal crimes. No cannabis-derived drug
has ever been federally approved for use in treating any medical condition. Otherwise legitimate busi-
ness transactions conducted by cannabis companies—and their banks, for those who can access bank-
ing services—are legally suspect. Certain intellectual property and bankruptcy protections critical to
many U.S. businesses are not available to cannabis companies. Cannabis companies pay federal income
tax at effective rates significantly higher than other businesses.
Despite official prohibition, however, federal policies and laws recently passed by Congress have
carved out a limited space in which the state-legal cannabis industry has managed to thrive. Enforce-
ment policies published by the U.S. Department of Justice have unofficially invited cannabis business
to proceed if certain conditions are respected. The U.S. Department of the Treasury established report-
ing policies that create room for banks to service the cannabis industry. Federal budget legislation
carved out a limited space in which the state-legal cannabis industry has managed to thrive. Enforce-
ment policies published by the U.S. Department of Justice have unofficially invited cannabis business
to proceed if certain conditions are respected. The U.S. Department of the Treasury established report-
ing policies that create room for banks to service the cannabis industry. Federal budget legislation
4
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC
HOUSE_OVERSIGHT_024640
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