The failure of Proposition 19, the initiative to legalize recreational marijuana use in the state of California quieted many marijuana companies looking to be among the first publicly traded participants in the anticipated “Green Rush” projected to follow the bill’s passage. The same can’t be said of General Cannabis (CANA.PK), which unlike most corporations angling for a piece of the pot pie, has managed to stay afloat and continue moving forward in the face of the disappointment. The latest in a string of new updates from the company is the purchase of Weedmaps.com or Weedmaps, LLC. A combination of cash and stock with additional earn out potential for the two co-founders of Weedmaps, LLC, Justin Hartfield and Keith Hoerling, the buyout is among the first of several decisive business moves planned for the near future.
The purchase of Weedmaps.com fulfills the aim of the company to solidify itself in the arena of media and technology within medical marijuana. Weedmaps, described by its founder as a sort of Yelp or Wikipedia for medical marijuana, already boasts 50,000 members and 4.2 million in monthly page views. The company is expected to bring in $4 million in revenue by the end of the year.
"This purchase has been in the planning stages for a long time and we are incredibly excited to have completed the transaction. We believe there is tremendous potential in the Cannabis industry, and General Cannabis truly represents the future of the industry" said Hartfield.
The future of the industry, if Hartfield is to be believed, is the corporatization of medical marijuana, the objective of General Cannabis. Until now, the medical marijuana industry has been extremely fragmented with small and divided operations, rather than one company that possesses the capacity to do It all from research, to growing, to doctor and dispensary management. General Cannabis aims to be the first that does it all and their acquisition of weedmaps is among the initial steps of making multi-platform management a reality. The ultimate goal of the company, the one that separates it from the early publicly traded companies with more narrow stances is their intent to establish eight separate subsidiaries or corporate objectives that encompass all angles of the industry including, medical management, internet and media, financial services, product development, industrial agriculture, dispensary management, political relations and philanthropy.
"The acquisition of Weedmaps, and the addition of Hartfield and Hoerling to the intellectual and creative process of General Cannabis will create a wealth of innovation that this Company intends to develop as it redefines this industry,” said Doug Francis, Chairman & President of General Cannabis following the finalization of the purchase. “It is the goal of General Cannabis not just to offer exceptional service for our end users, but to create multiple vertical operational and B2B services that simultaneously capture significant market share while creating new ancillary businesses along the way."
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