Dear Grow Condo (OTC: GRWC) Shareholders,
The New Year is often a time of earnest reflection on the developments of last year and ambitious goal-setting for the year ahead. I am pleased to say that 2015 was a year of transformation and tremendous progress for the Company in our last quarter in terms of uniquely positioning the company and the brand long term.
I would first like to thank all of the shareholders for their continued support with the Company. We greatly appreciate the trust you have placed in Grow Condo’s operations, management, and mission. As we move forward, we will strive to capitalize on our momentum and create increased shareholder value for this new dynamic and potentially highly lucrative industry for our shareholders, partners and associates. We look forward to 2016 and 2017 to be key years in the developing of Grow Condos in an industry leader in the specialty of real estate, tools and education for the marijuana industry
The legal marijuana industry has never looked better with many experts already labeling it as the fastest growing industry in the Country and if the trend toward legalization spreads to all 50 states, marijuana could become larger than the organic food industry. Industry experts estimate U.S. market for legal cannabis grew 74 percent in 2014 to $2.7 billion, up from $1.5 billion in 2013. Additionally, over the next five years, the marijuana industry is expected to continue to grow, with an estimated 14 more states will legalize recreational marijuana and two more states will legalize medical marijuana.
It is estimated by The ArcView Group publisher of the 3rd Edition of the State of Legal Marijuana Markets, that by 2019, all of the state-legal marijuana markets combined will make for a potential overall market worth almost $11 billion annually. California still has the largest legal medical cannabis market in the U.S., at $1.3 billion. Arizona was found to have the fastest-growing major marijuana market in 2014, expanding to $155 million, up more than $120 million from the previous year. Medical marijuana is already legal in Arizona and California and recreational legalization measures are likely to appear on the 2016 ballots in both states.
More than 1.5 million shoppers purchased legal marijuana from a dispensary, either medical or recreational, in 2014. Five states now boast marijuana markets that are larger than $100 million, and in Colorado and Washington — the first states to open retail marijuana shops in the U.S. — consumers bought $370 million in marijuana products last year. Oregon and Alaska are expected to add a combined $275 million in retail marijuana sales in their first year of operation, the report projects.
The huge growth potential of the industry appears to be limited only by the possibility of states rejecting the loosening of their drug laws. If the legalization trend continues to the point that all 50 states legalize recreational marijuana, the total market value of all states legalizing marijuana would top $36.8 billion — more than $3 billion larger than the organic food industry.
Significant Achievements 2015
1) Recapitalize the company’s stock and positioning for the Investment community. By completing the reverse stock split of 20/1 while maintaining our fully reporting status it uniquely positions us to be attractive within the investment and acquisition community
2) Developed financial models for Industrial condo sales and marketing.
3) Identify strategic management and advisors
4) Target development properties for acquisition and build out
Overview 2016 goals and milestones
The current year is expected to be a busy year of development and expansion of our multi pronged real estate company catering to the marijuana industry. Our plan for the year is the build out of the following in the hopes of building a dynamic company that is uniquely positioned for this exploding industry.
1) Expansion of new industrial condo projects: We plan to close and begin development of additional properties to compliment our 15 unit property in Eugene. Plans call to then market these individual customized condo units to the marijuana growing community
2) Broadening management team and advisors: As the company matures we recognize the need to have our management team broadened and to have specific proven backgrounds that can help build out the company for the primetime marketplace. The company is currently interviewing an exciting team to begin announcing shortly
3) Launch and close private placement memorandum for $2.5 million ($15 million fully diluted): The Company will require sufficient capital to deploy for the build out and the management of these properties and plans call for the announcement of a proposed private placement shortly.
4) Develop strategic partners and joint ventures for the implementation of our educational line: The marijuana growing community is uniquely specialized as it relates to real estate. Each unit is customized to the specific needs of the owner. Grow Condos is developing unique educational and procedural tools to satisfy the demand for new and up and coming growers.
Wayne A. Zallen, CEO
Safe Harbor: This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Grow Condos Inc, its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words “may,” “would,” “will,” “expect,” “estimate,” “can,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Grow Condos Inc. ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Grow Condos, Inc. filings with the OTC Markets, Securities and Exchange Commission and/or the company’s website.