WHITEFISH, MT / August 25, 2014 / The market for legalized marijuana in the United States is expected to surpass $8 billion by 2018, according to Marijuana Business Daily. In addition to the recreational legalization of marijuana in Colorado and Washington State, voters will have the opportunity to legalize the drug in Washington DC, Alaska and Oregon in November, which could potentially expand the market far beyond the $8 billion figure.
Companies like GW Pharmaceuticals plc (GWPH) have also been legitimizing medical marijuana by conducting clinical trials that demonstrate the safety and efficacy of THCs, CBDs, and other cannabinoids in treating a number of serious medical conditions. For instance, the Charlotte’s Web strain of cannabis has proven to be very effective in reducing childhood seizures.
In this report, we’ll take a look at Endexx Corporation’s (EDXC) plans to capitalize on the rapidly growing industry with innovative medical marijuana management and technology solutions that focus on compliance, standardization, security and quality controls for the cannabis industry.
The medical marijuana industry is tightly regulated given that marijuana remains a Schedule I Controlled Substance under U.S. law. While the drug remains illegal on a federal level, statewide legalization efforts have relied on effective seed-to-sale compliance regulations and procedures to create a legal standard and avoid federal interventions. These efforts involve everything from tracking the marijuana plant from the origin of the seed to the final sale.
Endexx’s m3hub and Autospense™ solutions are designed to simplify, automate and standardize these processes for cannabis businesses. M3hub provides seed-to-sale inventory tracking and management solutions to ensure regulatory compliance in any regulatory environment by providing a complete set of CRM, CMS, and POS solutions. In aggregate, these solutions tightly control workflow while syncing with its Autospense(TM) solution.
Figure 1 – Autospense(TM) Machine & Interface – Source: Company
Autospense(TM) enables automated dispensing of medical marijuana to reduce errors, automate tracking, and ensure customer satisfaction. After providing the proper documentation, patients are issued a pre-approved membership card that can be swiped into the Autospense(TM) machine and verified by fingerprint and PIN identification number to receive their chosen product.
Endexx announced the completion of the acquisition of GreenLeaf Consulting LLC on August 5, 2014. Based in New Jersey, the pioneering consulting firm provides advisory services to cannabis companies in several states to assist with application preparation, securing licensing, and compliance protocols. Founder Joseph Stevens will also be contributing his compliance expertise to the firm post-acquisition.
"My proven experience guiding medical marijuana companies through complex regulatory requirements, coupled with Endexx’s outstanding technology solutions, creates a one-stop shop for seed to sale compliance solutions for the cannabis industry," said Mr. Stevens in a press release. "I anticipate that our strategic alliance will provide [both companies] with new opportunities and synergies."
Mr. Stevens is a pioneer within the medical marijuana industry, having single-handedly navigated through the state’s highly restrictive regulations to open GreenLeaf Compassion Center in December 2012. In addition to running his business, he assisted the Department of Health in establishing laboratory testing, including protocols for isolating THC, THC-A, and CBD quantities.
The move should help Endexx grow its customer base by leveraging GreenLeaf’s existing and future client base. At the same time, Endexx’s existing client base could benefit from GreenLeaf’s consulting services when pursuing applications or compliance issues, such as expansions into new states.
Through the GreenLeaf Acquisition Endexx adds value to the M3Hub Platform by integrating complementary proprietary technologies and services and accelerating near term revenue at greater rates through added equity arrangements and recurring revenue channels.
Endexx stands at a tipping point in its corporate history. After over a year of product development and building alliances that are critical to growth, Endexx is launching the M3Hub platform, Autospense and a new line of pharmaceutical grade Cannabidiol (CBD) line of products while pursuing other strategic acquisitions that are immediate revenue generators and will put Endexx on the path to sustainable growth.
Investors may also appreciate that Endexx offers more of an ancillary play on the space than companies like Medical Marijuana Inc. (MJNA) that are directly involved with the drug or Vape Holdings Inc. (VAPE) that producers largely consumer-focused products. Instead, Endexx is building a portfolio of diversified service and technology companies in its mission to connect as many touch points as possible in the Seed to Sale processes by offering unique enterprise solutions that generate recurring revenue and equity participation.
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Disclaimer: Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/
SOURCE: Emerging Growth LLC