In any consumer products company the one thing that makes them stand out isn’t their products, but their ability to distribute them. In short, shelf space is still king and Green Tree Therapeutics ( ) (FSE:WNT) may be a king in the making in the marijuana products distribution sector.
Green Tree Therapeutics distributes recognized marijuana vaporizer products through 165 dispensaries throughout North America and is looking to expand its product mix – as well as entering the more lucrative U.S. market. So, let’s look at the numbers and see what makes Green Tree Therapeutics ( ) (FSE:WNT) a solid play for investors.
Green Tree Therapeutics ( ) just oversubscribed it’s $2.9 million private placement financing, so they should have plenty of cash on hand to fill the $250,000 purchase order they received on March 22, 2017. Green Tree Therapeutics is moving forward and doesn’t seem to be slowing down anytime soon.
First, the Legal Medical & Adult Use Marijuana Market is forecast to grow at an annualized rate of 31% through 2020, according to a 2016 report from Arcview Research. In 2014, sales were $4.6 billion, which by 2016 had climbed to $7.1 billion. By 2020, the marijuana market is forecast at $22.8 billion and while that number may seem high (pardon the pun), its actually low and here’s why. From 2014 through 2016 the number of states that adopted legal marijuana use more-than doubled and by 2018 it could double again, or possibly more. That spells cash for savvy medical marijuana and beneficial CBD products companies.
2016 was a watershed year for the medical marijuana industry with 11 states passing legislation. Now that’s MORE THAN DOUBLE the forecast I cited in the prior paragraph and it appears that Green Tree Therapeutics (CSE: WRW.CN) is poised to take advantage of it in a big way.
What sets Green Tree Therapeutics ( ) apart is it’s not in the business of manufacturing any marijuana related products – it’s a distributor and what it has that’s attractive to marijuana product manufactures is the fact that Green Tree Therapeutics has SHELF SPACE.
While there has been resistance by voters to legalize marijuana for adult consumption, state coffers in Washington and Colorado have been filling up with cash that most legislators can’t overlook. From 2014 to 2015, the state of Colorado saw a 77% increase in cannabis taxes and license fees, growing from $73 million to over $135 million dollars. In Washington state’s first year, regulators added $70 million in tax revenues to its bank account on a mere $257 in sales. In 2017, the state of Nevada legalized marijuana for adult use and legislators are expected to work through laws to put into place retail stores that can sell it. California also legalized marijuana and the state is expected to be the largest dollar volume consumer by 2018. For Green Tree Therapeutics that means sales. California represents 31% of the U.S. market at $2.8 billion in sales in 2015 and growing!
According to an investor deck found on Green Tree Therapeutics website, the company is looking to enter the California market and expand its shelf space reach. Current dispensaries are located all across Canada and in Washington, Oregon, Colorado, Illinois and Florida.
So how many dispensaries are there in North America? Over 10,000 and growing. That means, WRW.CN only has a mere 1.3% of the marijuana distribution market which for investors means a lot of room for growth! Green Tree Therapeutics ( ) is forecasting growth from 130 dispensaries to over 750 by 2021. That spells profits for investors who get in on Green Tree Therapeutics stock early!
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