SAN GERONIMO, Calif., May 2, 2013 /PRNewswire/ -- Virogen Inc. (OTC:VRNI), a holding company with specialties in data security and encryption technology, today announced the launch of its newest business unit, "The Cannabis Connection", which is intended to operate medicinal marijuana dispensaries in states that have legalized such operations, including California.
With an estimated current annual value of approximately $120 billion (legal and illegal) and expected continued easing of marijuana laws nationwide, the marijuana market appears to be headed for a period of dramatic growth. In California, The Cannabis Connection's home state, which represents approximately 10% of the overall U.S. market, 95%, or approximately $11 billion, of marijuana sales are made legally through medicinal marijuana dispensaries. The company's management has equated the current state of the legal marijuana industry to the post-prohibition U.S. alcohol industry, in terms of the massive consumer market, volume of consumption, market fragmentation and opportunity for profit.
It is the fragmented nature of the legal marijuana market that provides the greatest source of optimism for the company's management. This highly fragmented market is dominated by independent operators, many of whom were "dealers" prior to the legalization of marijuana, who invested minimal capital and operate their marijuana outlets in areas where overhead is low. It is the market fragmentation coupled with the relative lack of sophistication of existing operators that provide the company with its opportunity to consolidate existing outlets and operate a chain of dispensaries, all within an extremely short timeframe.
About Virogen, Inc.
In addition to developing its recently announced business unit, The Cannabis Connection, Virogen, Inc. is a technology holding company. The company's wholly owned subsidiary, Tiger Team Technologies "T3," has developed a very unique suite of copyrighted tools to address the network and database security needs of enterprise level companies and corporations. T3's risk management offering provides an unprecedented level of security and liability protection, positioning it as one of the only companies with a comprehensive solution to data security breaches for its clients. T3's primary markets include medical service providers, financial services firms, brokerages and currency transaction platforms, consumer credit card companies, banking entities, retailers, defense and government related operations.
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Virogen, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions the occurrence of unanticipated events or changes to future operating results.
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SOURCE Virogen, Inc.