Several cannabis companies, including CannaRoyalty Corp, are increasing their stakes and investments in the California cannabis market since the legalization of adult use cannabis. California cannabis is likely to exceed $3 billion in market value by the end of this year, according to ArcView Market Research and BDS Analytics.
California, the state of 40 million residents and the sixth largest economy, represents about a third of the North American cannabis market. Cowen & Co analysts believe the California cannabis market could account for almost half of the total U.S. market by 2026; they are expecting the California cannabis market to reach $25 billion in the next seven years.
Simultaneously, cannabis companies are investing substantially in California to capitalize on the increasing demand for medical and recreational cannabis.
CannaRoyalty Corp Plans to Become Leading Distributor in California
CannaRoyalty Corp (OTCQX:CNNRF) recently announced its plan to raise its proceeds to $30 million in order to expand their market share in the California cannabis market. Essentially, the company is planning to allocate more funds to building its infrastructure in the world’s most lucrative cannabis market, with the intention of becoming a leading distributor of cannabis products in California.
Its CEO Marc Lustig says, “Our primary focus over the next 12 months will be to continue to build, support and grow its product and brand portfolio in California.”
CannaRoyalty Corp completed several critical milestones last year, including Kaya and Alta acquisitions, to strengthen their position in California. The Kaya and Alta acquisitions generated $85000 in revenue for CannaRoyalty during the first quarter. The company has consolidated its manufacturing operations with Kaya, which will start producing CannaRoyalty’s branded products in the state of California. The company expects to generate substantial revenue growth from its operations under Kaya in the following quarters.
CannaRoyalty shares are booming as traders and shareholders are backing its strategy of expanding its market position in the largest U.S. cannabis market. Its share price grew 36% in the last three months, extending the twelve-month rally to 170%. CannaRoyalty shares have a 52-week trading range of $1.50 to $4.58 – with the market cap of $191 million.
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