Luxury cannabis company Canndescent has announced plans to expand its current operations beyond their home state of California. With this move they have become the first Californian cannabis company to become a multi-state operator that is involved in the cannabis sector. With expansion already beginning a spokesman for the company has said that it became California’s first MSO with their investment of $25.8 Million USD to purchase licenses and operating locations in three well known cannabis markets. They have three states in mind while making the moves and they are Massachusetts, Michigan and Nevada.
CEO of Canndescent Adrian Sedlin commented on the MSO title, and in fact pushed against it saying in a recent press release “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.” The move by Canndescent to acquire new ground for business is majorly beneficial for them as it will allow the company to enter into less diluted markets. This in turn will allow them to target consumers that provide a more preferable price dynamic as well as have lower baselines for their product quality.
The acquisitions will add a very generous 135,000 square feet in operating capacity for the new MSO with revenue estimations for the new builds coming in at the $75 Million USD annually mark. With the new acquisitions of licenses and operating areas, Canndescent will now have to fit all the spaces to support their cultivation and extraction facilities, which shouldn’t be a hard job for the Cannabis producer.
The company has said that by the year end of 2020 they hope to be operating in eight to twelve of the currently available US markets. This is a bold move by the company, however in the grand scheme of things, cannabis is becoming more widely accepted on a global scale, and will soon become a staple in investment portfolios.
Sandy Li – IEC International