Brace Yourself! Nevada to Get Marijuana Retail Stores from Green Growth Brands

Interest in medical marijuana dispensaries and recreation sales in states that permit it is growing at a rapid pace. Investors are actively seeking ways to buy into this market as one of the bright spots of the US economy at the present time. Now, Green Growth Brands, an Ohio company, has bought out The Source, a Las Vegas retailer and has been awarded seven licenses by the state of Nevada to operate there too.

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Getting Right to the Source

Green Growth Brands recently bought out The Source, both a retail store and wholesale provider with its own cultivation center. The Source began life in 2015 as a dispensary for medical marijuana but later expanded to sales for recreational users in October last year.

In an unusual deal, the original developers of The Source have retained ownership of a separate store they still operate in Henderson and licenses the right to continue using the The Source branding on this store. It’s clearly a deal that works for all parties concerned.

The Source by the Numbers

The brief details behind The Source’s financials provide interesting reading for investors in the space.

The Source produced $19 million of sales in the full year to June 30^th and delivered $4.6 million of profit. The sales of $19 million were roughly double the typical sales that a marijuana retail store in Nevada achieves. Clearly on the retail side, The Source has been doing something right to achieve double the usual revenue.

CBD oil-based products are continually on the rise with 2017 sales hitting $820m and they are set to eclipse that for 2018. Indeed, the U.S. Congress just passed the Farm Bill which, with its $867bn funding package, includes approval for Ohio farmers to produce hemp which is one of the ingredients used to produce CBD oil.

New Stores Expands the Scope

For Green Growth Brands, they will be expanding The Source brand as well as using some of their pre-existing lifestyle brands like Camp which is popular with millennials. With the acquisition of seven new licenses, GGB is becoming a hot name in Nevada cannabis. Seven stores are only the beginning with more licenses to be awarded by the state of Nevada in the future too.

The range of CBD-based products continues to grow. The complexity or maturity of the market is showing too. Now products are marketed under varied brands aimed at entirely new demographics. There isn’t just one CBD oil solution, but different ones based on usage cases. Similarly, people who work out but have discomfort in their knees might look for a CBD cream to help ease the pain in their joints. With each new product range and better research into the provable life improvement when using CBD products, the growth path is likely to continue for years to come.

Following the rise in interest in medicinal marijuana use and the move to CBD-based products which only use part of the plant to provide pain relief without the resultant euphoria, some retailers have found new hope in marketing on the high street. Where other retailers are shutting down or scaling back, adventurous companies like Green Growth Brands see a fresh opportunity.