Agreement provides Grown Rogue option to acquire controlling interest of assets. First harvest expected Q4-2019.
Go ‘east’ young man. A twist on the famous Horace Greeley quote sees one of the cannabis industry’s first premium seed-to-experience cannabis brands continue its strategic growth from west to east.
Oregon-based Grown Rogue International Inc. (C:GRIN, OTCMKTS: GRUSF, Forum) – a vertically-integrated, multi-state cannabis company – has announced a new corporate acquisition/partnership and expansion into Muskegon in Western Michigan.
The partnership is with experienced cannabis operator Inferno Gardens, Inc., whose assets include the local approval for one retail dispensary and a 24,000 square foot indoor manufacturing facility that will include both cultivation and processing when fully constructed. State licensing is in progress and expected to be completed in the coming months.
According to a press release dated July 2, 2019, the facility is approximately 40 percent constructed to date and is expected to be fully operational within four months.
Grown Rogue’s CEO Obie Strickler commented on the acquisition:
"The cultivation facility, pending all regulatory approval, is targeted to be fully operational by the end of the fourth quarter of this year with first revenue anticipated in early first quarter of 2020. Given that current Michigan market rates for quality cannabis flower fetches around $3000 /lb, this new revenue source bodes well for our company's revenue targets. We are excited to partner with Jesse and the rest of his team at Inferno Gardens and bring our proven business model and brand to the Michigan market."
Quick Facts About the Michigan Cannabis Market:
- Michigan is a quickly growing cannabis market with a total state population of approximately 7 million (adults 21 years and over), of which 300,000 are registered medical cannabis patients. Michigan boasts the highest number of cannabis medical patients per capita in the United States.
- BDS Analytics estimates the market for legal cannabis sales in Michigan will grow from nearly $950M in 2018 to roughly $1.4B in 2020.
- Michigan revenue represents the fourth largest legal state cannabis market in the U.S. after California, Colorado, and Washington.
- According to Canaccord Genuity, considering BDS’s “three phases of state market expansion,” Michigan appears to be poised to enter the second or hyper-growth phase, where growth rates accelerate for several years upon rollout of recreational sales. In Colorado, hyper-growth occurred from 2014 to 2016, when year-to-year growth rates were 110%, 45%, and 31% successively.
- Michigan is the only U.S. State in the Midwest to fully legalize recreational cannabis.
Quick Facts on the Grown Rogue Acquisition of Inferno Gardens
- Inferno Gardens' licenses include cultivation, processing, and retail in a popular destination corridor en route to Lake Michigan and other Michigan State Parks.
- Cultivation facility is 24,000 square feet which, at full capacity, will yield approximately 4000 pounds of premium cannabis product per year.
- Current cannabis market prices in Michigan range between $3000 to $3500 per pound.
- The facility is expected to produce its first harvest in late 2019.
July 2019 Updated Financial Highlights
Grown Rogue’s Q2 revenue increases six-fold. For more details, click here.
About the Company
Grown Rogue International is a vertically-integrated, multi-state cannabis company curating innovative products to provide consumers with the right cannabis experience…every time. A seed-to-experience cannabis brand, Grown Rogue says its “passionate about the environment, community, and education.” All of Grown Rogue’s products and strains are categorized and marketed based on unique effects and designed for the full range of a consumers’ lifestyle.
Grown Rogue’s unique and diverse cannabis product suite includes premium flower, patent-pending nitrogen sealed pre-rolls, high-quality oils & concentrates, and gourmet-inspired edibles.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.