Whitefish, MT / ACCESSWIRE / December 17, 2014 / The idea of an automated marijuana-dispensing machine has been a fantasy of sorts since the cannabis industry's inception. By automating the identification, purchasing, and dispensing processes, dispensaries wouldn't have to worry quite as much about critical issues like security, cash management, or proper identification while the device could certainly help cut down on costs over time.
Several companies have already introduced such machines, including MedBox Inc.'s (OTC: MDBX) devices and American Green Inc.'s (OTC: ERBB) ZaZZZ, but the market hasn't been very responsive. After acquiring Autospense-maker Dispense Labs LLC back in 2013, Endexx Corp. (OTC: EDXC) began surveying potential customers instead of simply launching the product into the market and hoping for the best.
Regulatory Clarity
Endexx discovered that many customers were concerned that the machine may not be legal to use in their dispensaries. Working with Vincente Sederberg - a full service law firm focused on the cannabis industry, the company received an opinion letter supporting the legality of such machines. Brian Vincente, a partner in the firm, served as co-director on the Amendment 64 campaign to legalize cannabis in Colorado.
The company's attorneys soon received correspondence back from the State of Colorado Marijuana Enforcement Division stating that installing the machine was legal, but requested an inspection to take a closer look. Some of the areas the M.E.D were interested in were the packaging, labeling, batch tracking and receipt format delivered by the machine. In the upcoming weeks Endexx plans on completing the inspection of the unit to allay any fears or concerns that it may not be fully compliant and transparent for use in the medical and adult-use cannabis industry.
In June, the company announced a 100-day pilot program to test for compliance and tracking integration under Colorado's MED regulations. The program will collect measurable data on dispensary clients' behavior, market test adoption drivers, and collect valuable intelligence on whether the technology improved profitability by offsetting labor costs, improving inventory, and eliminating waiting times.
Improving the Process
The Autospense technology differentiates itself from competitors in many ways, including the use of ID and biometric thumbprints for identification. In addition, the technology includes built-in support for regulatory measures, such as printing receipts with batch numbers and labeling that's required under Colorado law. These attributes help guarantee that dispensaries are meeting and exceeding legal requirements.
In terms of financial improvements, Autospense provides a number of key advantages to dispensaries, including:
- Reduced patient wait-times.
- Automated management of inventory and distribution.
- Ensures the quality of marijuana tested by SC Laboratories.
- Enhances security, accountability, and supply chain management.
- Potential 24/7 sales via machine versus 8 hour per day sales by human.
Looking Ahead
Endexx trades with a market capitalization of about $12 million, which pales in comparison to competitors like MedBox's $162 million and American Green's $52 million market capitalization. Despite its relatively low market cap, the company has made tremendous progress in working with a leading law firm and Colorado's MED in addressing the major client concerns about adoption.
With a pilot program in place at an existing Colorado dispensary, investors can look forward to data that supports the machine's value proposition in the future. The same data could be used to scale its sales into additional dispensaries throughout the state and around the nation over the coming quarters and year. As well, these efforts have the potential to unlock significant value for shareholders over the long-term.
Finally, Autospense only represents one of the company's many projects. Its Cannsumables division - focused on CBDs - recently announced that it would be providing its M3Vape CBD Starter Kit to a voluntary patient study on diabetic neuropathy. These attributes could put Endexx in the same arena as other companies like CannaVEST Corp. (OTC: CANV), which trades with a $100 million market cap.
For more information, visit the company's website at www.endexx.com.
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