A new US banking bill (if passed) could boost FinCanna Capital and the legal cannabis industry
The current talk in the North American cannabis industry is the US H.R.1595 SAFE Banking Act of 2019. Approved by the House Financial Services Committee on Thursday, March 28, 2019, the bill will advance to the House floor for deliberation by the full legislative assembly. If this bill is passed in the legislative assembly it would allow financial institutions to legally provide services to cannabis related businesses operating in compliance with state laws. The approval by the House Financial Services Committee in a 45-15 vote marks the first time a cannabis banking related bill has been approved by a congressional committee.
By 2025 US cannabis sales are estimated to reach US$23 billion, with California being the sales leader both by volume and revenue. California is the largest cannabis market in North America, representing ~$2.75 billion in sales. If the state of California were a country, it would have the fifth largest GDP in the world.
Forecast sales of legal cannabis in the United States from 2016 to 2025 (in billion U.S. dollars)
FinCanna Capital Corp. (CSE: CALI | OTCQB: FNNZF) is a royalty company for the U.S. licensed medical cannabis industry, with a focus on California. The Company’s vision is to be the capital partner of choice for rapidly emerging companies focused on the licensed U.S. medical cannabis industry.
FinCanna CEO and the Chairman of the Board share their views on the SAFE Banking Act bill
Andriyko Herchak, CEO of FinCanna Capital, commented: “This bill represents an important development in the continuing evolution of the industry. Importantly, it also supports both safety and transparency for industry participants in what has been historically a cash only enterprise.“
Recently elected to the position of Chairman of the Board, Mr. Morris L. Reid commented: “This is a critical step forward for the cannabis industry and the cannabis reform agenda. Regardless of where you stand on legalization, making banking available to cannabis businesses in states where it is legal provides much needed stability to the industry.”
Mr. Morris L. Reid has been a director of FinCanna for the past two years and has worked with high-profile individuals, government officials and corporate executives, advising on high-level political and corporate issues for more than 15 years. As a globally recognized strategist, Morris has worked in North America, Latin America and across the Middle East and Africa in both the public and private sectors and advises prime ministers, finance ministers, foreign ministers and health ministers in some of the world’s most prominent emerging markets.
CEO Andriyko Herchak commented: “We are honored to have a man of Morris’s stature and experience take on the important role of Chairman of the Board. We look forward to his contribution and leadership as we continue to build our diversified investment portfolio creating long term wealth for our shareholders.”
Experts view on the impact of the SAFE Banking Act bill
Despite its legality in several states, the US cannabis market remains at the federal level illegal. Many experts have agreed this bill will help smaller dispensaries and other smaller operators in the industry. The passing of this bill could send a signal of support for the overall cannabis market. The passing of the SAFE Banking Act may help signal a larger shift in public opinion that may ultimately help legislation in those states where it is still illegal. The bill could be approved by early 2020.
FinCanna Capital will continue to provide growth capital to rapidly emerging private companies operating in the U.S. licensed medical cannabis industry. By the end of 2019 it has been predicted that all of the states legal marijuana markets in the US combined will make for a potential overall market worth more than $12 billion annually. California Companies hold the largest market share at 49%, followed closely by Colorado at 30%.
FinCanna Capital stands to be a beneficiary of any growth in the US cannabis market. This growth is likely to come with greater legislative change and public acceptance, and in this instance further success with the passing of the SAFE Banking Act.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>