California just made public its cannabis excise taxes numbers for the first quarter of 2019.
Based on the reported figures, total adult use sales rose by 92 percent year-over-year, from $213 million in the first quarter of 2018 to $409.3 million for the first quarter of 2019.
“Most of the growth is attributed to ‘preregulated’ inventory that was sold through in the first quarter of 2018 but not taxed,” Matt Karnes, founder and managing partner of GreenWave Advisors, told Benzinga.
Since medical marijuana sales are not taxed, the state government did not provide any stats around them Thursday.
GreenWave Advisors estimates medical marijuana sales to be roughly 40 percent of total sales, meaning total cannabis sales in the first quarter of 2019 should have hit $682.2 million.
“While these results are still below the state's original expectations, we believe the growth trajectory is encouraging and expect California to ultimately reach its full potential of approximately $6.5 billion over the next four to five years,” Karnes said, adding that licensing procedures remain problematic in the near term.
See more from Benzinga
- Canadian Government Earmarks .5M For Cannabis Research, Education
- Discussing Sol Global's M Hemp Biomass Investment With CEO Brady Cobb
- New Report Says US Cannabis Market Could Hit .7B By 2023, New York And Massachusetts To Emerge As Leaders
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.