Page 4 - Shango Case Study

The Challanges
A New Industry
After nearly a century of disinformation, unjust prohibition and black-market distribution, a political, cultural and consumer paradigm shift is rocking the nation. The adamant barriers to the legal use of cannabis are falling.
Since the mid 1960s, there has been a signi cant, growing and undeniable consumer demand
for recreational cannabis products. In the 1980s, cannabis emerged as an effective and
widely accepted medicinal therapy. Today, individual states, struggling with ever increasing
responsibilities and budget de cits, are looking to cannabis sales as a substantial source of new
The Company
tax revenues.
Shango, a subsidiary of Rexroad Marquis Corporation (RMC), is an integrated cultivator, These conditions are driving a rapid and comprehensive reform of existing cannabis laws. It
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opened and a whole new industry is being created. The Cannabis Industry. As thousands
the greater Portland area. The company is poised to enter new markets for cannabis opening in
of companies rush to compete for a share of these untapped markets, governments are
Alaska, Arizona, California, Hawaii and Nevada. It is also planning to extend its presence across
scrambling to regulate this new industry, investors are hustling to exploit it and the American the country as other states legalize recreational and/or medicinal cannabis.
public is grappling with the decision to reject it or embrace it. Shango is commited to:
• Legal cannabis is uncharted territory and there is no reliable roadmap for the Cannabis
• Rede ning cannabis as a positive and respected addition to the nationwide marketplace. Industry to follow.
° State legislation and regulation.
• Changing how millions of Americans responsibly purchase, use and enjoy cannabis.
§ At the outset, there were no legal or regulatory precedents at the state level. • Transforming the production and sale of cannabis products into a prosperous business, as
§ Each state is now rapidly developing its own laws and regulations, which may well as a pro table investment.
be more or less restrictive than those in other states.
• Hastily conceived and enacted laws and regulations are often in • Creating America’s rst and nest national cannabis brand.
con ict with existing ones.
° State legislation and regulation.
• New laws and regulations are constantly evolving and can change at any time.
§ All states strictly control:
• Which companies receive licenses to cultivate, process or sell
wholesale and/or retail cannabis.
° No company is guaranteed access to any state market.
° Some states are creating monopolies for a select group of licensees.
Define. Differentiate. Dramatize.
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