77°F
weather icon Clear

MJardin Group looks to invest in Nevada marijuana market

MJardin Group, a manager of cannabis facilities around North America, said it is looking to invest as much as $30 million into the Nevada marijuana market as recreational sales boom.

The Denver-based company is looking to spend as much as half that amount to acquire several dispensary licenses or facilities as its aims to build a vertically integrated operation in the state, Executive Chairman Rishi Gautam said in a telephone interview Monday.

“We are looking for a few acquisitions for retail in Nevada and are keen to expand,” said Gautam. Nevada is a top five U.S. market and “ticks all the boxes” for the company, including a sizeable tourist market, he said. Marijuana sales

MJardin said it completed the purchase Monday of two indoor cannabis cultivation sites near Nellis Air Force Base for $22 million in cash and stock. MJardin was already managing those facilities.

The deal is the latest in a series of acquisitions in the Nevada marijuana industry, which posted total recreational and medicinal retail sales in excess of $500 million in the twelve months that ended June 30, beating state forecasts.

New facility expansion

MJardin acquired the parent company of GreenMart of Nevada LLC, which owns a four-acre site capable of producing more than 10,000 pounds of cannabis annually, the company said in a statement early Tuesday.

One of the facilities is currently in production while the second one is expected to open in January.

MJardin plans to invest as much as $15 million into the facility to develop extraction and packaging for its own marijuana-infused products as well as for up to five brands. Gautam said he would announce the company’s brand partners in the coming months.

MJardin’s business model has focused on managing cultivation, processing and retail facilities for marijuana license holders, many of whom don’t have experience in the nascent industry.

The company currently manages 36 facilities in North America, including the two near Nellis and one in Henderson, Gautam said.

MJardin wants to buy more operations as its seeks to move away from just being a third-party operator, he said. The company has access to cash for more acquisitions from a Toronto-based credit fund.

MJardin plans to list its shares on a Canadian exchange later this year, he said.

Contact Todd Prince at 702-383-0386 or tprince@reviewjournal.com. Follow @toddprincetv on Twitter.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Nevada marijuana license ruling could come next week

A Nevada judge said Friday she expects next week to finish hearing a case involving dozens of companies that lost bids to open new retail pot stores asking her to stop the state from licensing more marijuana businesses.

California to increase enforcement against illegal pot shops

California is planning to intensify its enforcement against the state’s thriving illegal marijuana market, including launching an ad campaign Friday that urges consumers to seek out licensed shops with safe products.

Officials raid 247 Colorado homes growing black market pot

Authorities said Friday they raided hundreds of black market marijuana operations in Colorado that flouted the state’s cannabis law by growing tens of thousands of plants in Denver-area homes and selling the drugs out of state.

Governor announces plan to legalize marijuana in Illinois

Illinois Gov. J.B. Pritzker said Saturday he’s reached an agreement with key lawmakers on a plan to legalize recreational marijuana in the state starting next year.