Page 1 - GS181102

November 26, 2018 • Issue 18:11:02
Serving cannabis businesses:

an $11 billion conundrum

CBD (or cannabidiol) is a compound that coexists with
THC (the psychoactive component) in cannabis plants
and has been shown to be effective in the treatment of
assorted maladies, including PTSD, pain and epilepsy. CBD
products are sold and used in various forms, including
tinctures, lotions, mists, infused drinks and candies, and
vape pens. Unlike THC products, pure CBD products are
not intoxicating, yet they still are classified as Schedule 1
narcotics under federal law.

Businesses sanctioned by states to sell cannabis are on track
to ring up $11 billion in consumer sales this year, according
to BDS Analytics, a Boulder, Colo., firm that keeps tabs
on the industry. That's on par with what Americans are
expected to spend this year on movie tickets and twice
what they'll spend on ice cream, according to Marijuana
By Patti Murphy Business Daily.

oters in three states approved ballot measures A report released earlier this year by BDS and Arcview
on Nov. 6, 2018, that relax restrictions on can- Market Research put the growth rate for legal cannabis
nabis sales. Meanwhile, there are rumblings in sales at 22 percent a year, and projected total sales will
V Washington about loosening federal strictures exceed $23 billion by 2022. U.S. consumer purchases of CBD
around cannabis sales. Nonetheless, it's still a tough slog products are expected to total $512.7 million this year and
for merchant services providers that want to work with to more than double to $1.153 billion by 2020, according to
businesses engaged in this emerging market. data reported by Statista, the online statistics portal.

"Merchant services isn't any easier or any harder at this Unlike most consumer purchases, however, purchases of
point," said Dustin Eide, CEO of CanPay. Headquartered in cannabis and CBD products are generally transacted with
Littleton, Colo., CanPay is one of a few dozen companies
focused on state-regulated cannabis businesses.

While federal law treats cannabis products as illegal Contributed articles inside by:
– cannabis is deemed a Schedule 1 narcotic under the
Controlled Substances Act, placing it on par with heroin Brandes Elitch ........................................................................................23
– only four states now have laws on the books that ban
the use and sale of cannabis products. Thirty states and Steve Norell ............................................................................................40
the District of Columbia have legalized medicinal and/or Bill Pirtle ...................................................................................................42
recreational uses of cannabis and 16 states have legalized Jeh Holsomback ...................................................................................45
sales of CBD products. Evan Weese .............................................................................................46

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