- Net
Element stock skyrocketed after the company announced the launch of a
fully compliant payment solution for the legal cannabis industry
- Shares
grew 63 percent, with volume eventually increasing to 9.5 million shares
from previous full-day averages of 81,000 shares
- The
payment solution enables entry into a lucrative field that’s forecast to
grow beyond $22 billion by 2022
On October 22, global technology and value-added solutions
group Net Element, Inc. (NASDAQ: NETE) announced the launch of a
fully-compliant payment solution for the legal cannabis industry. The payment
processing solution is designed to provide a smooth transaction between
merchants and consumers as the popularity of cannabidiol-based products
grows (http://ibn.fm/Y09oi).
Shortly after the company announced the launch of the
payment solution through subsidiary Unified Payments, Net Element shares
rocketed 63 percent, with volume growing to 9.5 million shares in comparison to
the earlier average of 81,000 shares.
The new payment solution is complex, as it has to overcome
several legal industry challenges. The legal cannabis market is dependent on
state laws, because it hasn’t been allowed federally as of yet. Unified
Payments had to overcome this issue through the creation of a single, unified
and fully compliant product.
Previously, CBD products were mainly available in head
shops. Today, they have spread to food and natural stores, beauty boutiques and
even cafés. This increasing availability drives a high need for the provision
of a reliable, unified payment solution.
Net Element President of Integrated Payments Vlad Sadovskiy
said in a news release that the company is excited to create a legal cannabis
payment acceptance solution that meets the needs of merchants across the
market. Net Element works closely with numerous vendors to ensure that they’re
getting access to state-of-the-art payment solutions.
The American cannabis industry is expected to grow
significantly, and it will most likely reach $20 billion by the end of the
year, while the hemp CBD market alone is likely to surge to $22 billion by
2022, according to cannabis and CBD research firm Brightfield Group (http://ibn.fm/B0gfM).
From 2017 to 2018, the CBD market in the U.S. nearly doubled
in size, analysis suggests (http://ibn.fm/VABuF).
The five-year growth projection is now dramatically higher than what experts
forecast just one year previously. The prospects of full legalization of CBD
products are more favorable than ever before due to the recent Hemp Farming Act
of 2018 proposal aimed at removing hemp from Schedule I controlled substances
and making it an agricultural commodity.
Net Element is a global financial technology and value-added
solutions provider. The company supports electronic payments in an omni-channel
environment. It operates a payment-as-a-service transactional model for small
and medium-sized companies across the U.S. and emerging markets. The aim of the
company is to utilize the model for the purpose of delivering flexible payment
solutions to markets with diverse regulatory, demographic and financial
transaction conditions. Net Element was ranked as one of the fastest growing
North American companies on Deloitte’s 2017 Technology Fast 500.
For more information, visit the company’s website at www.NetElement.com
About MissionIR
MissionIR is
primarily focused on strategic communications. We have executed countless
communications programs to address the needs of companies ranging from
start-ups to established industry leaders, gaining valuable experience and the
expertise necessary to determine the most effective strategy for any given
situation.
For more information, visit www.MissionIR.com
Please see full terms of use and disclaimers on the Mission
Investor Relations website applicable to all content provided by MIR, wherever
published or re-published: http://www.missionir.com/disclaimer.html
