The Legal Cannabis Market Expected to Hit $21 Billion by 2020; Cannabis Testing Leader, Signal Bay to Capitalize.
Signal Bay, Inc. (OTCQB: SGBY) a Life Science company and the market leader in cannabis quality control testing and laboratory services announced this week that the Company has been uplisted and approved for trading on the OTCQB Marketplace for early stage and developing U.S. and international companies.
In a recent press release, CEO of Signal Bay, William Waldrop commented:
“With this successful uplist the company is now strategically positioned on the OTCQB Venture Marketplace. We believe that the increased transparency, reporting standards, management certification and compliance requirements of the OTCQB that are representative of our commitment to our shareholders will result in greater liquidity and investor awareness of the Company’s business model,” stated CEO William Waldrop.
Cannabis Testing Leader, Signal Bay Well-Positioned in Exploding Industry
The trend towards the legalization of marijuana nationwide began in earnest on November 9 when four states legalized marijuana for recreational use: California, Nevada, Massachusetts, and Maine. Five had the measure on the ballot. Anticipating this result, Signal Bay, whose EVIO Labs dominate the Oregon cannabis testing market recently acquired its first cannabis testing laboratory in California, now the largest legal marijuana market on Earth. The Company plans to add 18 more EVIO Labs in the state by the end of 2018. In addition, the Company is looking at expanding into other states and territories as the trend towards the legalization of marijuana continues.
Signal Bay is a leader in the cannabis quality control testing space, which is expected to grow to $850 million by 2020. The Company has five operating cannabis testing laboratories or “EVIO Labs” as the Company brands them, and is executing an aggressive acquisition strategy nationwide.
Of all the states that had recreational marijuana on the ballot, Arizona was the lone state to vote against the measure. In Maine, it narrowly passed and there is talk of a possible recount. In addition, medical marijuana laws passed in Montana, Arkansas, Florida and North Dakota.
Over the last four years, Alaska, Colorado, Oregon, Washington, and the District of Columbia have all legalized recreational marijuana. While the marijuana markets are relatively small in states like Maine and Alaska, the additional of the nation’s most populous state of California, home to over 12 percent of the US population and now the largest single marijuana market on Earth, experts now believe that the eventual national legalization of marijuana is inevitable. Annual sales of cannabis in California could reach $7.6 billion by 2020, according to New Frontier Data –$4.3 billion for recreational and $3.3 billion for medical. That matches the $4.3 billion recreational sales estimate from the Tax Foundation.
According to the industry experts at the Arcview Group, the national marijuana market is expected to balloon to $21 billion by 2020, which is up from $5.7 billion last year and an expected $7.9 billion this year.
An October Gallup Poll showed that 60 percent of Americans favor the legalization of marijuana.
The Marijuana Map
With these game-changing election results, marijuana is now legal to varying degrees in most states. Here’s how it breaks down.
Investors Should Focus on Cannabis Testing Space
While investors should be excited that the market for cannabis is going to hit $21 Billion by 2020, investing in such a saturated space is difficult. New marijuana based companies hit the public markets almost daily. The Cannabis testing space, with its high barrier to entry and increasing importance as marijuana marches towards inevitable legalization nationwide, is a great sector of the industry for investors to place their focus.
The cannabis testing space should be on every investor’s radar. The reason for the industry’s exponential growth is simple: As cannabis becomes legal, it must be regulated and tested like any other consumer product. With five operating EVIO cannabis testing laboratories, Signal Bay is poised to capture a significant share of this growing market.
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