The tremendous momentum of state legalization of medical-use cannabis in the United States has led to a transformation in the way patients can obtain treatment for a wide spectrum of medical conditions in a safe, reliable and compassionate environment, giving hope to millions. Our focus is to partner with well-capitalized, experienced medical-use cannabis operators in states with a robust medical-use regulatory environment. Our acquisition strategy is to act as a source of capital to these licensed medical-use cannabis growers by acquiring and leasing back their real estate locations. By selling the real estate to us, and then leasing it back, growers have the opportunity to redeploy the proceeds into their company’s core operations allowing them to focus their resources on reaching as many patients as possible in need of treatment.
In 1996, voters made California the first state in the United States to allow for medical-use cannabis. Over the next twenty years, medical-use cannabis programs have been adopted by over half of the United States, where over 200 million people reside. As of December 31, 2019, 33 states, plus the District of Columbia, have adopted medical-use cannabis programs. This wave of adoption by states of medical-use cannabis programs has been driven by the rapidly evolving, overwhelming acceptance of Americans for medical-use cannabis as an alternative form of treatment for patients. In fact, according to a 2019 poll conducted by Quinnipiac University, 93% of those surveyed support adults being able to use medical cannabis, if recommended by a doctor.
According to Arcview Market Research and BDS Analytics, state-legal cannabis sales in the United States grew to an estimated $12.2 billion in 2019, an increase of 34% over 2018’s total of $9.1 billion, and are expected to grow to over $31 billion by 2024. States have authorized numerous medical conditions as qualifying conditions for treatment with medical-use cannabis, which may include, among others, treatment for cancer, glaucoma, HIV/AIDs, wasting syndrome, pain, nausea, seizures, muscle spasms, multiple sclerosis, post-traumatic stress disorder (PTSD), migraines, arthritis, Parkinson's disease, Alzheimer's, lupus, residual limb pain, spinal cord injuries, inflammatory bowel disease and terminal illness.
The medical-use cannabis industry is positioned to continue significant growth in coming years.