An upcoming town hall meeting on recreational marijuana will be held in March, and it may have positive outcomes for one of Player’s Network, Inc.’s (PNTV) holdings. Marijuana Business Daily reports that regulators plan to hold the town hall forum to present temporary regulations allowing existing medical cannabis dispensaries to sell products to adults age 21 and over. Under the proposal, the tax department would adopt those regulations by May 8, opening the door for state regulators to open the application process earlier.
According to the Las Vegas Sun, the Nevada Department of Taxation have been crafting rules and deadlines to govern recreational marijuana since Nevada voters legalized it for adults 21 and older in November. Recreational marijuana can’t be sold in Nevada until January 1, 2018 but temporary licenses are open to medical marijuana shops in good standing with the state.
One sticking point in current Nevada laws is the gray area between recreational use and purchasing of marijuana and cannabis products. In Nevada, all adults age 21 and over can possess and use recreational marijuana, but only medical marijuana patients can purchase it at dispensaries. The unfortunate result is that the growing number of recreational users are turning to the gray and black markets to obtain their cannabis. It’s hardly different from the Prohibition era when consumers turned to medical alcohol recommendations or illegal speakeasies for their popular product.
Luckily, the situation could turn around very soon. Marijuana Business Daily writes, “if the plan is adopted, the taxation department could begin issuing temporary licenses to dispensaries on July 1, the first day of the new fiscal year…” They also estimate that if recreational marijuana is approved for July 1 of this year, “Nevada’s rec market could generate annual sales of $450 million-$550 million within a few years of the program’s launch.”
A July 2017 opening instead of a January 2018 launch would be a boon for Player’s Network’s shareholders. One of Player’s Network’s holdings is Green Leaf Farm Holdings, LLC (Green Leaf Farms), of which Player’s Network owns 86%. Green Leaf Farms is licensed to grow and sell marijuana and cannabis products and is one of the relatively few companies that will be ready to enter the recreational marijuana market as soon as recreational buying and selling is legal.
Since newcomers into the market won’t be able to open for selling recreational cannabis before October 2018, Green Leaf Farms will be one of the few licensed producers and distributors in Nevada to meet the huge demands of a rapidly expanding consumer base. Once buying and selling recreational marijuana is fully legal in Nevada, due to the limited number of licensed dispensaries, the demand for product will likely outweigh the supply. Green Leaf Farms will benefit from a captive consumer base and the market environment is expected to translate into rising stock value for Player’s Network’s shareholders.