Wildflower gets access to the lucrative cannabis market in United States

3:10 pm by Alessandro Bruno

Washington is ready to welcome Wildflower products with a market of some 370,000 cannabis users, consuming about 175 metric tons of marijuana per year according to a study by the Rand Corporation

Wildflower Marijuana (CSE:SUN) has gained access to the US market, developing special products to be sold through an unnamed American joint venture partner.

Washington is ready to welcome Wildflower products with a market of some 370,000 cannabis users, consuming about 175 metric tons of marijuana per year according to a study by Rand Corporation. This is about three times as large as the entire Canadian marijuana medicinal market, which has only 59,000 registered patients.

Under the terms of the deal, Wildflower will issue 1.3 million shares and pay its JV partner C$250,000 as well as C$1.1 million in working capital to develop the brand.

The cross-border partner will have an exclusive license to manufacture, market and sell specific Wildflower branded merchandise in the State of Washington. In turn, Wildflower will receive a licensing fee equal to 20 percent of the gross sales of its branded products.

Wildflower’s president and CEO William MacLean considers the move to Washington as "the first step in realizing [the company's] goal of making Wildflower a global marijuana brand."

"After many years of hard work I am excited that we will finally get to see the Wildflower brand available on store shelves," said MacLean.

The company said its JV partner is currently producing and selling marijuana and related products, and once the transaction closes Wildflower can immediately commence sales of its branded products. Work has already begun to identify new and unique product lines, it added.

Four U.S. states — Washington, Colorado, Alaska and Oregon, along with Washington D.C, have legalized it for recreational use.

In Canada, Wildflower has filed two applications to grow and distribute medical marijuana under a Marijuana for Medical Purposes Regulations (MMPR) license with Health Canada.

Wildflower's JV partner holds the necessary I-502 production and processing license, which allows it to manufacture cannabis concentrates, used as the base ingredients for several Wildflower product lines from infused edibles to drinks, oils and topical products.

In accordance with Washington State legislation, Wildflower cannot have any interest in any license in Washington State even if it can license its brand name and consult with its JV partner to ensure quality. Therefore, Wildflower will have oversight of best practices to maintain quality standards in order to help build the brand’s reputation.

According to analysts, the recreational cannabis sector has a very wide margin of growth and by 2018, it could be worth some US$10 billion a year.