'It's Our Turn Now For Wealth Creation,' iAnthus CEO Tells Cannabis Capital Conference

The American cannabis market generates about $50-$60 billion in annual revenue, iAnthus Capital Holdings Inc ITHUF CEO Hadley Ford told the Benzinga Cannabis Capital Conference in a keynote address Wednesday. 

That means the legal market has only an 11-percent penetration rate, Ford said — and he expects it to eventually reach roughly 55-percent penetration, comparable to the alcohol industry.

The cannabis market could therefore reach $200 billion, and with the valuation multiples seen today, it could reach $1 trillion, the CEO said. 

Competing In Cannabis 

Companies must grow quickly in order to stay competitive: it's a game of musical chairs, "but there's not a lot of chairs left," Ford said. 

The large New York and Florida markets are essential to a cannabis company's footprint, in the CEO's view. But entering those states is difficult for companies that haven't already made an initial public offering to raise capital, and for that reason Ford said he's expecting a wave of M&A in cannabis in 2019. 

A retail presence is a must due to barriers such as filtering of cannabis content by social media companies, Ford said. Cannabis retail locations should have a great location, educated employees and provide a quality customer experience, he said. 

A CBD Strategy In 2019

Consumer packaging and beverage companies are likely to make cannabis plays in 2019, and they're going to come in the form of CBD, Ford said. 

"CBD is the gateway drug to THC." 

This means that companies need to develop a strong CBD strategy in order to maintain their position when the heavyweights step in, the CEO said. 

'It's Our Turn' 

Ford pointed out that he did not use the word "cannabis" in his keynote speech Wednesday. 

“Companies need to focus on the internal and stock aspects of their company to grow," the CEO said.

The companies at the conference are "four to five times undervalued," Ford said. 

“My prediction for 2019? It’s our turn now for wealth creation."

Related Links: 

Multistate Operators Respond To Changing Cannabis Market 

GrowGen And The Future Of Cannabis Cultivation Supplies 

Market News and Data brought to you by Benzinga APIs
Posted In: CannabisNewsEventsMarketsCannabis Capital Conferencemarijuanamedical marijuanapotRecreational Marijuanaweed
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Benzinga Cannabis Capital Conference is coming to Florida

The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.

Get your tickets now on bzcannabis.com – Prices will increase very soon!