DENVER, June 17, 2021 /PRNewswire/ -- Business
intelligence from Akerna (Nasdaq: KERN), an enterprise software,
leading compliance technology provider, and developer of the
cannabis industry's first seed-to-sale enterprise resource planning
(ERP) software technology (MJ Platform®), predicts that
Alabama will make $600,146,880 in its first three years of medical
retail cannabis sales.
In May, Alabama became the 36th
state to legalize medical cannabis, marking the second "Deep South"
state to do so.
Akerna data analyzed the average retail sales history of current
legal medical-only marijuana markets and then compared those
figures to Alabama's population.
Based on the study, Alabama is
projected to retail around $48
million in its first full year of medical sales, about
$163 million in the second year, and
approximately $387 million in the
third year of legal medical cannabis sales.
It was a widely shared expectation that all southern-region
states, many of which have long been led by conservative
politicians, would never legalize cannabis at any level. However,
recent legislative moves have proved otherwise. For example,
Louisiana has a medical program,
Virginia recently legalized adult
use, medical licensing is underway in Georgia, and medical bills are being worked on
in South Carolina, North Carolina, and Kentucky.
If the remaining southern-region states were to fully legalize
medical marijuana, they would see the following retail sales
trajectory:
State
|
Population
|
Year 1
Sales
|
Year 2
Sales
|
Year 3
Sales
|
Total Sales in First
3 Years
|
State with
medical-only cannabis
|
13,002,700
|
$
126,488,281.42
|
$
422,631,126.48
|
$
1,004,044,705.50
|
$
1,553,164,113.40
|
|
|
Projected:
|
|
|
|
AL
|
5,024,279
|
$
48,875,419.42
|
$
163,305,828.29
|
$
387,965,632.44
|
$
600,146,880.15
|
GA*
|
10,711,908
|
$
104,203,806.41
|
$
348,172,744.49
|
$
827,153,938.27
|
$
1,279,530,489.18
|
KY
|
4,505,836
|
$
43,832,085.03
|
$
146,454,701.29
|
$
347,932,412.47
|
$
538,219,198.79
|
LA*
|
4,657,757
|
$
45,309,949.33
|
$
151,392,640.59
|
$
359,663,474.15
|
$
556,366,064.07
|
MS
|
2,961,279
|
$
28,806,870.23
|
$
96,251,446.21
|
$
228,664,546.71
|
$
353,722,863.14
|
NC
|
10,439,388
|
$
101,552,773.44
|
$
339,314,935.38
|
$
806,110,442.45
|
$
1,246,978,151.27
|
SC
|
5,118,425
|
$
49,791,257.34
|
$
166,365,887.36
|
$
395,235,414.32
|
$
611,392,559.02
|
TN
|
6,910,840
|
$
67,227,596.94
|
$
224,625,354.28
|
$
533,642,421.39
|
$
825,495,372.61
|
TX
|
29,145,505
|
$
283,523,025.11
|
$
947,326,140.72
|
$
2,250,562,574.26
|
$
3,481,411,740.09
|
WV*
|
1,793,716
|
$
17,448,995.53
|
$
58,301,753.76
|
$
138,507,467.91
|
$
214,258,217.20
|
* Indicates state
with current limited medical program
|
Virginia, which recently
legalized adult-use cannabis, is projected to see over $109 million in their first year, $364 million in their second, and $866 million in their third, totaling over
$1.3 billion in projected cannabis
retail sales. Florida has had a
full medical market for over three years and was omitted from the
report.
"States across the US are realizing the massive economic impact
that legalizing medical marijuana would have on their local
economy," said James Ahrendt,
Business Intelligence Architect at Akerna. "With so much movement
happening in the south, we compared states in that region with
other legal medical-only markets to uncover the potential retail
sales of cannabis. The history of other markets and our data
reports show that cannabis has the potential to be a major cash
crop in regions of the US that are historically leaders in
agriculture and farming."
Cannabis sales in other medical markets have consistently shown
year-over-year growth, likely due to more medical licenses,
increased retail access, and decreased stigma around the medical
use of cannabis.
About MJ Freeway
MJ Freeway is more than software as a service. Its flagship
solution, MJ Platform, includes Platform Insights. Now operators,
investors, and regulators can access the industry's largest and
most statistically relevant database to drive data-driven business
decisions.
Platform Insights provides:
- The greatest statistical relevance across countries
- Normalized data (not farmed from various disparate POS
platforms)
- Full cannabis supply chain data
- Business insights founded in category management
methodology
Platform Insights can eliminate the guesswork and provide
answers to questions like:
- What is the gross margin return on inventory?
- What SKUs should be carried?
- How do basket adjacencies influence discounting and retention
strategies?
- What does a medical market look like a year or five years after
decriminalizing cannabis?
Click here for more information about MJ Platform.
About Akerna:
Akerna (Nasdaq: KERN) is an enterprise software company focused
on compliantly serving the cannabis, hemp, and CBD industry. First
launched in 2010, Akerna has tracked more than $20 billion in cannabis sales to date and is the
first cannabis software company listed on Nasdaq. The company's
cornerstone technology, MJ Platform, the world's leading
infrastructure as a service platform, powers retailers,
manufacturers, brands, distributors, and cultivators.
For more information, visit https://www.akerna.com/.
About the Akerna Flash Report:
Flash Report is a look at buying trends in the cannabis market
as captured by Akerna's MJ Freeway subsidiary.
MJ Freeway provides operators with MJ Platform, the
industry-leading solution for regulatory compliance technology,
from seed-to-sale-to-self. Some instances of the flash report may
include business intelligence derived from Akerna's family of
companies, including Ample Organics, Leaf Data Systems, solo
sciences, Trellis, and Viridian Sciences.
Data is derived from MJ Platform, the leading provider of
cannabis compliance software for the marijuana industry. Sales
projections are based on market adjustment calculations and
represent the entire US market as an aggregate.
Reporting Data is obtained from operators using Akerna's MJ
Platform solutions. Akerna has one of the largest seed-to-sale
footprints in the cannabis industry, operating in 15 countries and
23 U.S. states, including Pennsylvania, Oklahoma, Puerto
Rico, Arizona, California, Utah, Michigan, Colorado, Montana, Nevada, Maine, Vermont, New
Mexico, Missouri,
Texas, Ohio, Maryland, Washington
D.C., Kansas, Arkansas, New
York.
Increases are relative to the prior period. Additional business
intelligence data sources may include proprietary tools used by
Akerna's family of companies.
Forward-Looking Statements:
Certain statements made in this release are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "estimates,"
"projected," "expects," "anticipates," "forecasts," "plans,"
"intends," "believes," "seeks," "may," "will," "should," "future,"
"propose" and variations of these words or similar expressions (or
the negative versions of such terms or expressions) are intended to
identify forward-looking statements. Such forward-looking
statements include but are not limited to statements regarding the
ability of the MJ Platform team to help operators make decisions
through analytics and reporting. These forward-looking statements
are not guarantees of future performance, conditions or results,
and involve a number of significant known and unknown risks,
uncertainties, assumptions, and other important factors, many of
which are outside Akerna's control, that could cause actual results
or outcomes to differ materially from those discussed in the
forward-looking statements. Important factors, among others that
may affect actual results or outcomes, include (i) Akerna's ability
to maintain relationships with customers and suppliers and retain
its management and key employees, (ii) changes in applicable laws
or regulations, (iii) changes in the market place due to the
coronavirus pandemic or other market factors, (iv) and other risks
and uncertainties disclosed from time to time in Akerna's filings
with the U.S. Securities and Exchange Commission, including those
under "Risk Factors" therein. You are cautioned not to place undue
reliance on forward-looking statements. All information herein
speaks only as of the date hereof, in the case of information about
Akerna, or the date of such information, in the case of information
from persons other than Akerna. Akerna undertakes no duty to update
or revise the information contained herein. Forecasts and estimates
regarding Akerna's industry and end markets are based on sources
believed to be reliable; however, there can be no assurance these
forecasts and estimates will prove accurate in whole or in
part.
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