IAN is a U.S.-focused business that is already generating solid cash flow. The company recently announced a deal to “combine with MPX” – a vertically integrated cannabis company with extensive medicinal networks in five states.
With operations now in Arizona, Maryland, Nevada, California and Massachusetts, New York, Florida, Massachusetts, Vermont, Colorado, and New Mexico – iAnthus has formed a “super-regional footprint” in both the eastern and western United States.
GrowHealthy owns a 200,000 square-feet cultivation and processing facility on 33 acres in Lake Wales, Florida. It currently sells cannabis and CBD products on-line.
Grow Healthy provides guidance in finding a prescribing doctor – from there it’s a 3-part process: 1. shop, 2. place and order, 3. get free delivery.
GrowHealthy’s West Palm Beach flagship dispensary is located on a major traffic artery at 4237 Okeechobee Blvd.
It’s the beginning of a massive dispensary roll-out, with two more West Palm Beach locations this month, and 16 more planned for 2019 – targeting a total of 30 dispensaries by the end of 2020.
From its web portal, GrowHealthy has been offering free statewide delivery since February 2018.
The Florida dispensaries will allow iAnthus to radically expand patients’ access to medical cannabis products. For Palm Beach and Hillsborough counties, it’s a significant job creator.
“Our original dispensary design provides an inviting, immersive and educational experience,” stated Randy Maslow, President of iAnthus, “this is just the start of our plans for a rapid expansion of GrowHealthy dispensaries throughout Florida.”
According to Marijuana Business Daily, Florida’s MMJ market has been growing fast:
2018 Key Highlights:
- Active patients nearly tripled, from 56,000 to 159,000
- Dispensary locations jumped from 24 to 78
- MMJ sales expected to total up to $300 million
A conservative extrapolation of that data suggests 2018 sales of around $4 million per location.
Florida is the 3rd most populous state in the U.S (19 million) with 17% of Floridians over 65 years old. With that aging demographic – it’s not surprising that there is a strong demand for medicinal cannabis and CBD products – which are used to treat cancer, joint pain and inflammation.
For investors looking forward, the most significant value of the Florida dispensaries may be a springboard into the (future) recreational market.
There are about 7 million people in Florida between the age of 20 and 45. There is strong anecdotal evidence that many of them are purchasing recreational cannabis on the black market.
For instance, On December 18, 2018 – an enterprising young Florida resident Anthony Gallagher attempted to trade a bag of weed for a Happy Meal – and was promptly arrested.
Gallagher, one suspects, is a strong candidate to patronise the GrowHealthy Florida dispensaries if and when they sell recreational cannabis.
A U.S criminal justice reform bill expected to pass this week, will NOT remove the threat of federal prosecution in states where cannabis is legal. But a new vote in the Democrat-controlled Congress could change that.
At Equity Guru, we believe that legal recreational weed in the U.S. is coming soon because (like women’s-right-to-vote and gay marriage) – the arguments against it are too flimsy to remain upright.
GrowHealthy will continue its current delivery program, while the physical dispensary locations will offer new limited-release products and on-hand access to expert staff.
The dispensaries will feature design and technology elements new to the medical cannabis industry in Florida.
“Each location was designed with the customer experience in mind,” confirmed Carlos Perea, President of GrowHealthy operations in Florida. “From the moment you enter the store, you are connected to the patient-centered values of the company. Every detail was considered; it is truly a retail work of art.”
The iAnthus/MPX deal is the first public-to-public merger transaction in U.S. cannabis history. It expands iAnthus’ business activities to 56 retail locations and 14 cultivation/processing facilities in 10 U.S. states.
iAnthus warns that all Florida dispensary openings are subject to state Department of Health approvals.
FULL DISCLOSURE: iAnthus Capital is an Equity Guru marketing client and we own the stock.