According to a report published by New Frontier Data, the legal cannabis market is worth about $6.6 billion in 2016 and is expected to reach $24 billion by 2025, with a compound annual growth rate of 16 percent. Recreational cannabis sales are expected to experience faster growth than sales for medical use. The report indicated that sales for adult use are projected to grow at a 21% GAGR to $10.9 billion during the same forecasted period, while cannabis for medical use is estimated to grow from $4.7 billion in 2016 to $13.3 billion by 2025.
Giadha Aguirre De Carcer, CEO of New Frontier Data, stated, “Cannabis stocks significantly outperformed major indexes in 2016, fueled by speculative investment based on anticipated expansion of new legal markets. In the run up to the election, stocks increased by 207.8% and continued to rise, even with an uncertain future under the new administration. While recent comments by the Trump administration did have an initial dampening effect on the market, we have seen continued growth relative to Q4 2016 whereby cannabis stocks are still outperforming other sectors”
Marijuana Company of America, Inc. (OTC: MCOA) announced last week that, “it has completed an investment of $250,000 into MoneyTrac Technology, Inc. (“MTT”), a subsidiary of Global Payout, Inc. in exchange for a 15% ownership interest.”
MCOA made this investment to help establish and market MTT as an alternative banking solution for the cannabis industry. MoneyTrac’s software has the ability to integrate and streamline electronic payment processing, such as E-Wallet and mobile applications, as well as manage and process prepaid cards, debit cards, and credit card payments.
As part of the terms of the investment, Donald Steinberg, CEO and President of MCOA, was appointed to the board of MTT this year where he is lending the invaluable experience he has acquired throughout his career in building alternative financial solution companies to the MTT executive management team.
“We are excited to help guide MTT through its developmental stages and are optimistic about the potential of MCOA’s investment into this new project. This is another example of MCOA’s strong strategic partnerships with emerging companies in our industry,” Donald Steinberg said.
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