Grown Rogue Creates Joint Venture With Pure Extracts Aiming To Expand Its Offering In Michigan Cannabis Market

Grown Rogue International Inc. GRIN GRUSF announced Thursday the signing of a definitive agreement for a joint venture between its Michigan partner, Golden Harvests, LLC and Pure Extracts Technologies Corp. PULL PRXTF to expand Grown Rogue’s product offering and bring Pure Extracts’ portfolio of products to Michigan.

The joint venture plans to build out 2,600 square feet of existing space in the 80,000 sq ft facility in Bay City, Michigan, which will give it the ability to produce Grown Rogue branded concentrates, cartridges, edibles and tinctures as well as similar items under Pure Extracts’ brand. The joint venture will also consider building dedicated greenhouse production to provide cheaper processing input for house brands and available white-label opportunities.

 “We are excited to expand our product offering in Michigan to include new products that doubles our addressable market in a top 5 cannabis state,” Obie Strickler, CEO of Grown Rogue stated. “We have consumers that actively seek out the processors who purchase our trim for their own products so this joint venture will help fulfill the increasing demand for Grown Rogue’s high-quality products in the state of Michigan, increase the strong brand equity our team is building, and capture additional margin for the company.”

Pure Extracts, a plant-based extraction company focused on cannabis and hemp, is based in British Columbia, Canada. The company will provide a mix of equipment, cash and extraction expertise to the venture, which will allow the partners to rapidly scale up to meet the rising demand for processed products throughout the state.

“We are excited to be teaming up with Grown Rogue, renowned cultivators who have already sold their cannabis products to over 100 dispensaries throughout Michigan, a state where cannabis sales reached a record $171 million in July of this year, up 56% from a year ago,” Ben Nikolaevsky, CEO of Pure Extracts said. “Establishing Pure Extracts’ brands in the United States, the world’s largest and most important cannabis market is an important milestone for our company.”

Price Action

Grown Rogue’s shares were holding steady 20 cents per share at the time of writing early afternoon on Thursday.

Photo: Courtesy of Jeff W on Unsplash