Dear Surna Shareholder:
This Tuesday another major victory was achieved in the campaign to further legalize cannabis. Intelligent and informed voters in Oregon, Alaska, and Washington, D.C. made it perfectly clear to lawmakers that lawful, recreational use of cannabis is indeed what the people want. With recreational use now legalized in these three key states the momentum to legalize responsible recreational cannabis use nationwide has gained even greater momentum. More lawmakers now understand a fully-regulated and legalized cannabis market is on the near horizon.
Florida voters also showed strong support (57.6% in favor) of the legalized use of medical marijuana, and even though the Florida vote fell short of the 60% needed to amend the state’s constitution, this is still another triumph for the cannabis industry.
Surna has always believed that widespread support for the legalization of cannabis existed, and now our opinions have been confirmed. This recent voter approval is one of the most promising developments for 2015 and should lend further credibility to the cannabis industry, potentially winning over traditionally resistant “Red” states.
Although Surna is not in the business of politics, these current developments are so substantial to the propagation of the cannabis industry that I had no choice but to write this letter to our valued shareholders. I would also like to take this opportunity to provide a quick synopsis of these elections and how we believe they will positively impact the cannabis growing industry.
Surna strongly supports outright legalization of cannabis nationwide and internationally. Shareholders and the general public should understand the definitive business advantages that the legalization process itself creates for our Company and many others.
First, cannabis businesses in each state must develop and maintain their own self-regulated infrastructure to legally initiate and expand operations in their respective state. This mandatory compliance intrastate requirement creates not just the need but also the necessity for cannabis technology – a demand that Surna is ready to meet.
In addition, every state that embarks on building a cannabis economy must develop an independent regulatory framework that, from a regulatory and compliance perspective, will differ from state to state. Surna is ideally positioned to provide cannabis-based businesses with the technology to maintain compliance at all times, regardless of their particular state. In many cases we are already providing this technology to Company’s in the cannabis sector.
Regardless of the differences in regulatory requirements that exist in each state’s framework, our team of engineers has already designed products that promote compliance, efficacy, and dollar-minded energy efficiency.
Surna has, and will continue to, set the standard for technology infrastructure in the cannabis industry and indoor gardening sector. Our growth and popularity indicate that we are doing something right. For lack of a better analogy, when you build a better mousetrap the world will indeed beat a path to your doorstep.
In some ways, the disparate regulatory regimes of each state may actually serve the long-term interests of both regulators and the industry. Experimentation and tweaking of regulatory requirements and mechanisms allows the most effective and least burdensome regulations to prove themselves well in advance of federal oversight. Colorado has been called “the great marijuana experiment” and the outcomes, so far, are proving to be worth it: use by teens is down, unemployment is down, and revenue is way up.
The 2014 midterms have affirmed the value proposition and opportunities in the cannabis market.
There is still plenty of progress to be made on the horizon, but 2014 has proven to be a historical year for growth and acceptance of the cannabis industry, and Surna. We will continue down our path of progress next week in Las Vegas for two cannabis focused events – the ArcView Investor Network meeting as well as the largest cannabis business conference to date, Marijuana Business Daily’s Conference and Expo. The timing could not be more advantageous since the state of Nevada just authorized 182 provisional licenses to cultivate medicinal marijuana. I will personally provide further insight into Surna at the ArcView meeting this Tuesday. On Thursday I will be joined by Ben and Jerry’s co-founder Ben Cohen and participate in a pitch contest at Marijuana Business Daily’s conference.
Since avidly taking Surna under my wing just seven months ago, the Company’s growth, development and overall industry acceptance have been nothing short of stellar. I, along with my dedicated and motivated team, promise to serve Surna to the fullest by dedicating all of our resources to create the brightest and most beneficial future.
For more information on the election and a perspective from our VP and General Counsel Tae Darnell and Associate General Counsel Graham Gerritsen, please visit our blog: www.surna.com/blog.