California-based luxury cannabis brand Canndescent is expanding its operations beyond the state. In doing so, it's now the first California company to become a multi-state operator in the cannabis space.
What To Know
The company said it became California's first MSO by investing $25.8 million to purchase buildings and operating licenses in three legal U.S. cannabis markets: Massachusetts, Michigan And Nevada.
Canndescent CEO Adrian Sedlin pushed back on the MSO title to some degree.
"We’re sort of the ‘anti-MSO’ or as I like to call it, we’re an MSBO, Multi-State Brand Operator, having nailed brand and execution first and now rolling up assets with intentionality and understanding," Sedlin said in a press release.
Need more cannabis news? Check out all of our coverage here.
Why It Matters
The acquisitions allow the company to enter less competitive markets, targeting those that provide preferable price dynamics as well as have lower baselines for product quality.
The acquisitions add 135,000 square feet in capacity for the newly minted MSO, with recurring revenue estimated at $75 million.
The acquired licenses and spaces will now be retrofitted to support Canndescent's cultivation and extraction efforts. By the end of 2020, Canndescent said it plans to stake its claim in eight to 12 markets across the U.S.
Related Links:
Canndescent Wraps First Commercial-Scale Cannabis Solar Project
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Click on the image for more info.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry?
Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.
Get your tickets now before prices surge by following this link.