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Multi-state expansion includes strategically located provisional centers (dispensaries) and cultivation operation
MEDFORD, OR, Jan. 15, 2019 /CNW/ – Grown Rogue International Inc. (CSE:GRIN | OTC: NVSIF) (“Grown Rogue” or the “Company“), a vertically-integrated, multi-state cannabis company with licenses and operations in Oregon and California, has announced today the signing of a Memorandum of Understanding to expand its brand and products into Michigan through a strategic partnership with established local cannabis operators and investors. The expansion is anticipated to initially include two retail dispensaries, referred to as provisional centers in Michigan, a 19,000 sq ft indoor cultivation and processing center in Detroit, and an interest in a 28 acre parcel located in the northern portion of the lower peninsula which can be used for cultivation. Grown Rogue will make a further announcement relating to the definitive terms of the partnership which are currently being negotiated between the parties.
“We invested significant time looking for the right partners for our Michigan expansion,” stated Obie Strickler, CEO of Grown Rogue. “Our Michigan partners include executives with multi-generational leadership track records in real estate development and business investment throughout the State, as well as experienced cannabis operators.”
Strategically Located Assets
The proposed Detroit retail dispensary is strategically located in a highly desirable section of midtown Detroit in close proximity to popular Detroit sports stadiums, art centers, and central to a fast growing affluent housing district. The Hazel Park location is within ¼ mile of the busiest freeway systems in the State as well as central to several popular destination Cities in Royal Oak, Birmingham, Ferndale, and Madison Heights. Hazel Park is only issuing a total of four provisioning center licenses.
The 19,000 sq ft Detroit cultivation center is a converted warehouse that is anticipated to house two (2) Class C growing licenses that will allow up to 3,000 plants for cultivation with an estimated annual production capacity of 2500 kgs. “Our cannabis experience includes an established brand presence, compliance and regulatory, construction of best-in-class cultivation facilities and other milestones we have achieved which will serve our partnership well as we continue to expand Grown Rogue nationally,” explained Mr. Strickler.
Early Mover Advantage
Michigan recently passed adult use cannabis in November 2018 with anticipated licensing for adult use beginning in early 2020 and has the second largest medical cannabis population in the United States. According to Detroitstats.com, in 2014, over 1 million people were recorded to have used marijuana (15.6% of the population) in Michigan. While California had over 4 million residents that said they consumed marijuana in 2016 (14.9% of the population).
“There is already such a significant adoption of cannabis by the general population in Michigan that we can really hit the ground running with our established brand and proven business processes,” said Jacques Habra, Chief Strategy Officer of Grown Rogue. “This strategic partnership, in one of most exciting states in the US, continues our focus on building a multi-state cannabis company.”
The barriers to entry into the Michigan cannabis industry are high due to regulatory standards still in flux and limitations on licensing by municipality. Grown Rogue’s momentum and multiple assets provide a unique advantage.
“According to the Detroit Free Press, Michigan has the second highest medical cannabis patient population at 283,832, which is the the highest percentage per capita in the United States. We are excited to take advantage of this new market opportunity for Grown Rogue’s proven business model,” added Mr. Strickler.
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