CANNAINVESTOR Magazine March / April 2017 - Page 74

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MARKET OPPORTUNITY (40 mil retail investors)

TAM

Census: 321 mil x 77% (population over 18) x 60% (US population with legal MJ laws) = 148 mil adults in Cannabis friendly states.

Gallup: 55% of the population are investing in stocks/bonds/IRA (same ratio for equity crowdfunding) 81 mil active investors in Cannabis friendly states.

Assuming 50% agree on Cannabis, we have 40 mil retail investors.

Assuming an average investment of $900 per year, we are in a $36 billion industry.

SAM

With an investment of $1 Mil, we can reach about 5% of TAM: $1.8 bln

SOM

There will be competition (Reg CF funding), we estimate to get 4.3% of SAM, within 3 years: $77 mil (funded)

At 8% success fee => $6.2 mil potential revenues (3 yrs)