INVITATION TO SUBMIT A JOINT VENTURE PROPOSAL TO CULTIVATE, PROCESS AND MARKET RECREATIONAL MARIJUANA IN NEW JERSEY.
After a dozen false starts and numerous miscalculations, the political landscape in New Jersey has finally allowed recreational cannabis use to be licensed. The "legal weed bill" would legalize the possession and personal use of one ounce or less of marijuana for people at least 21 years old, and create, regulate and impose a 12 percent tax on commercial marijuana industry in the state. An extra 2 percent excise tax could be raised for towns which host cannabis businesses. The state legislators have authorized a referendum, placing legalization on the ballot box. Not only are New Jersey voters electing a president, but they have the privilege to grant recreation marijuana use.
What is recreation marijuana use worth in New Jersey?
From the perspective of a legal marketer, millions of dollars with reliability low capital entry point. A housewife illegally tending 15 plants in the basement can make $60,000 with a $4,000 investment (includes all costs). Big reward, limited capital risk, but major risk of jail time making the enterprise tricky. Thousand do it, and thousands more of "other arrangements" have made millions of dollars with a few lowly marijuana plants. It is true --- the underground will always stay in business, whether they legalize, decriminalize or not. Indeed, there's always going to be a demand—and right now the black market is in charge. Even though the writings are on the wall, the black market has adapted and has become more customer-friendly. They’ll always have ways to survive.
Will the housewife in the basement get a permit to legally grow the stuff?
Don't think so.
What is the black market for pot worth in New Jersey?
According to our proprietary algorithm, the United States marijuana market is worth $52 billion — with 89% of sales are on the black market. By considering population parameters, consumer preference variables, net worth of individuals, spending habits of majority users, and fourteen other secondary and tertiary factors, New Jersey is sixth in overall illegal market uses. Therefore, New Jersey’s pot market is worth a is a whopping $7.9 billion.
You get the picture?
Let's get back to our housewife in the basement.
Her return on investment is 15 to one; each year and every year she elects to grow and sell pot. In essence, for every single dollar she gets fifteen in return. By any standard, that’s a fabulous investment.
Let us assume she has a 10,000 square feet greenhouse, two acres of outdoor cultivation and 15,000 square feet of processing and distribution facilities; and naturally a license sanctioned by the state of New Jersey to sell legal adult use pot.
What is that worth as a return of capital?
Assuming a conservative factor of 9 to 1, the lowly housewife in the basement, invested $2 million would produce $18 million in before-tax profits --- every year for as long as her heart desires. Her business would be worth at least $100,000,000.
Is that possible?
First Jersey Cannabis Corporation has the perfect location to make it happen. By distributing 50 percent of the cash flow to the partners and returning the balance, less net costs to the enterprise, the $2 million investment would create a One Billion Dollar business in seven years.