SOURCE: Colorado Harvest Company

Colorado Harvest Company

August 14, 2014 12:30 ET

Economic Impact Study of Colorado Harvest Company and Evergreen Apothecary Cannabis Dispensaries Shows an Increase of 280 Jobs and $30 Million in Revenue

Taxes Paid by the Business Total 10 Times the Tax Revenue of a Comparable Retail Store and Restaurant

DENVER, CO--(Marketwired - Aug 14, 2014) - Colorado Harvest Company (CHC) and Evergreen Apothecary (EA), two Denver cannabis dispensaries owned by partners Tim Cullen and Ralph Morgan, released an economic impact study focused on their Colorado business to demonstrate the benefits of the legalization of marijuana. The study measures the community impact of a jointly owned cannabis business with two outlets: Evergreen Apothecary and Colorado Harvest.

Jack Strauss, Ph.D., the Miller Chair of Applied Economics at the Reiman School of Finance, part of the University of Denver's Daniels Business School, completed the study using data from January through June 30, 2014. Strauss is an internationally acclaimed expert, whose research focuses on new forecasting methods and applications, including regional economic analysis, forecasting housing prices, and employment.

"This research will show us our present competitive position as well as guide our decisions in growing our business responsibly," Cullen said. "We commissioned Dr. Strauss to compare our business to other businesses of similar size so that we can measure the benefits of our well run dispensaries and help us contribute to the community that we love."

Strauss concluded that the economic impact of the two dispensaries amounts to 280 jobs and $30 million to the Denver Metropolitan Statistical Area MSA and thus contributes 7 times more jobs and output than average retail stores and restaurants. "My goal was to focus on the economics, specifically to present the benefits to the City of Denver, as well as the State of Colorado, in terms of tax revenue, jobs, output and payroll," Strauss said. "As a result, I found that CHC and EA pay 10 times the tax revenue of both a typical restaurant and retail store."

Key findings of the report include:
Jobs

  • CHC and EA have an economic impact of 280 jobs and contribute $30 million in output to the Denver region.
  • In contrast, the average retail store and restaurant has an economic impact of 39 jobs and $3.9 million.

Payroll

  • The average projected payroll for 2014 for CHC and EA exceeds $2.4 million.
  • This is 8 times higher than the average restaurant and retail store in Denver.

Sales

  • CHC and EA have a projected 2014 sales of $11.2 million.
  • In contrast, the average retail store and restaurant has a payroll of $300,000 and sales of $1.9 million.

Taxes

  • Local revenues based on Denver are $390,000 including $295,000 from CHC and $95,000 from EA.
  • Total taxes paid reach nearly $1.5 million which is 10 times paid by the average retail store and restaurant in the Denver MSA.

About Colorado Harvest Company and Evergreen Apothecary
In 2009, Tim Cullen and Ralph Morgan founded both Colorado Harvest Company and Evergreen Apothecary retail outlets that, today, produce and sell cannabis for adult medicinal and recreational use. Their mission is twofold: First, is to become Colorado's premier cannabis company by providing its customers with the highest-quality cannabis products and services sold by an exceedingly well-trained, knowledgeable, welcoming, and conscientious staff. Second is to responsibly and positively transform public perception of the Colorado cannabis industry through education, legal compliance and by consistently being Colorado's leading cannabis authorities. Please visit http://coloradoharvestcompany.com/ and http://evergreenapothecary.com/.

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