AmeriCann Comments on Historic Passage of the Federal SAFE Banking Act
September 26, 2019 at 09:00 AM EDT
SAFE Banking Act May Normalize Banking and Access to Capital for Cannabis Businesses
DENVER, CO / ACCESSWIRE / September 26, 2019 / AmeriCann, Inc. (OTCQB:ACAN), a cannabis company that is developing state-of-the-art cultivation, processing and product manufacturing facilities, commented on the House of Representatives' passage of the SAFE Banking Act and the positive outlook for federal cannabis legislation.
In a groundbreaking political development a body of Congress has passed pro-cannabis legislation, the House of Representatives approved the SAFE Banking Act (H.R. 1595). The bill would provide federal protections for all financial institutions to conduct business with state-legal cannabis companies.
Yesterday's approval is an important step in eliminating barriers for cannabis businesses and may be a tipping point in the long-sought quest for marijuana legalization nationally. The bill would give cannabis businesses operating in Massachusetts and other legal states access to banking and financial services.
"After decades of advocacy and cannabis policy development, we are experiencing overwhelming public support for medical and adult-access cannabis in the U.S.," says AmeriCann CEO Tim Keogh. "Making it possible for cannabis businesses to access capital and other banking services like all other legal businesses would clear the way for greater innovation and growth in the industry."
AmeriCann has completed construction on the first of three buildings in its Massachusetts Marijuana Center (MCC) being developed on a 52-acre parcel located in Southeastern Massachusetts. The MCC project is permitted for 987,000 sq. ft. of cannabis cultivation and processing infrastructure for the existing medical cannabis and the newly emerging adult-use cannabis marketplace.
AmeriCann has a 15-year Joint Venture Partnership for MMC's Building 1 with Bask, Inc., an existing Massachusetts licensed vertically integrated cannabis operator. AmeriCann will receive a Revenue Participation Fee of 15% of Gross Revenue on all products produced from Building 1.
The Massachusetts cannabis market has some of the highest prices in the United States, with wholesale prices reaching $4,000 per pound and retail prices greater than $7,000 per pound. Building 1 is projected to produce 7,500 pounds annually of dry flower cannabis and over 400,000 units of infused products. AmeriCann projects a 1.5 year payback on its investment in Building 1.
AmeriCann plans to replicate the brands, technology and innovations developed at its MCC project to new markets as a licensed multi-state operator (MSO).
"The passage of the SAFE Banking Act is a major milestone towards the end of cannabis prohibition in this country," stated Ben Barton, founder of AmeriCann. The removal of antiquated banking and financial barriers will serve as a major catalyst for this industry."
One of the major benefits to the end of cannabis prohibition is that it should accelerate the number of states that embrace and regulate medical cannabis and expand the availability of safe, effective medicine for patients and consumers.
As AmeriCann prepares to expand its operations at its flagship project in Massachusetts as well as into additional markets, it is well positioned to be a major beneficiary of the end of cannabis prohibition in the United States.
As the first approved adult-use cannabis market on the Eastern U.S., Massachusetts has the potential to become the epicenter for cannabis innovation and research. According to the Cannabis Control Commission, Massachusetts recreational dispensaries have sold more than $300 million worth of cannabis products since recreational sales began in November 2018. Annual recreational retail sales are expected to total $1.3-1.6 billion in a few years, according to Marijuana Business Daily estimates.
AmeriCann (OTCQB:ACAN) is a cannabis company that is developing cultivation, processing and product manufacturing facilities.
AmeriCann uses greenhouse technology for cannabis cultivation and is designing GMP Certified cannabis extraction and product manufacturing infrastructure. Through a wholly-owned subsidiary, AmeriCann Brands, Inc., the Company intends to secure licenses to cultivate cannabis and produce cannabis infused products including beverages, edibles, topicals, vape cartridges and concentrates.
More information about the Company is available at: www.americann.co, or follow AmeriCann on social media:
About Massachusetts Cannabis Center
Massachusetts Cannabis Center (MCC), is a one million square foot sustainable greenhouse, processing and manufacturing facility in Freetown, Mass which is being developed by AmeriCann. The first phase of the facility is scheduled to open and be ready for cannabis cultivation, processing, and infused product production in the summer of 2019. Once fully developed, the MCC design calls for a research facility, a training center, corporate offices, a quality-assurance laboratory, and a facility for manufacturing cannabis-infused food, nutraceuticals and consumer packaged cannabis goods.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional uncertainties that could impact the Company's forward-looking statements, please see the Company's Registration Statement on Form S-1, which the Company recently filed with the SEC and which may be viewed at www.sec.gov.
SOURCE: AmeriCann, Inc.
View source version on accesswire.com: