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GBLX Moving to Meet Burgeoning Cannabis Demand via Multi-Channel Distribution Approach
With the race now officially on to open the first medical marijuana (MMJ) dispensaries in Nevada, just a month after Nevada Pure broke ground on the state’s first big secure farming operation in east Las Vegas, anticipation is running high across the state regarding the upcoming 2016 general election ballot initiative that may legalize recreational use. Given that Colorado pulled in over $700 million last year and is currently on track to break $1 billion in annual revenues by 2016, according to projections based on state Department of Revenue data, and that a poll back in 2013 already showed 54 percent of Nevadans favored legalization, the MMJ market in Nevada could very quickly get a whole lot bigger next year.
Good news for fast growing biopharma company GrowBLOX Sciences (OTC: GBLX), whose advanced cultivation technology systems ensures maximized genetic potential of selectively propagated strains that ultimately contain more active ingredients per pound than is achieved with other cultivation methods. As of June 15th, the company has secured a $1.75 million funding commitment from Pacific Leaf Ventures to build out its MME (Medical Marijuana Establishment) known as The Cultivation Lab through a deal that includes key, highly recognizable cannabis brand names, as well as proprietary cultivation and extraction methods.
This state of the art facility, situated in a 28,000 ft.² warehouse, is set to produce well over 4000 lbs of high-grade cannabis per annum.
With dispensaries cropping up all over the place in Nevada amid a dearth of grow operations, the state faces a supply shortfall, and GBLX is now shrewdly positioned for a mid-Q4 completion of its cultivation facility. This facility’s purpose is to produce high profile strains and products that should appeal directly to MME cardholder patients in the state, as well as in neighboring Arizona and California markets since Nevada is unique to allow medical marijuana patient cards from other states to be recognized.
In addition to the projected medical cannabis market, California currently has a legalization proposal on the ballot for 2016, just like Nevada. Recent consumption demand estimates for California by NORML run in the neighborhood of 2 million pounds per year, a retail market potentially worth as much as around $9 billion at the average cost of $10.00 plus per gram of high quality strains. Even at the average cost per gram of medium quality strains, California represents a potential $6 billion retail market, or half that if we low-ball the cost per gram figure.
The total nationwide cannabis market is around $2.7 billion as of last year according to ArcView Market Research and it grew 70 percent or more between 2013 and 2014. With a 2019 projection of around $10.8 billion, which would be a whopping 300 percent increase, sector operators like GrowBLOX Sciences stand to see considerable upside as things progress further. ArcView’s projections are largely based on an extension of the clear trend of other states following Colorado into the tax revenue generation bonanza, but should not be taken as speculation. Indeed, with multiple states currently moving to either roll back restrictions, or pass measures to open up even recreational use, even as Canada’s Supreme Court handed down a landmark ruling which stipulates that patients can consume their medicine however they want, including in edible or oil form, the future upside for the MMJ sector in North America is tantalizing to say the least.
The company’s initial Nevada location for its retail footprint roll out, branded The Apothecary, with an attractive “compassionate cross ” logo that is easily recognizable by the green cross merged with the heart symbol. Combining the approachable and trustworthy aesthetics of a clean, minimalistic and clinical-feeling interior, with sophisticated, yet simplified biometrically-driven patient verification, The Apothecary layout features a security foyer for initial patient processing, waiting and consultation rooms, as well as a retail display area, and secure payment section. This same model will serve as the template for future retail locations and should help to establish a sense of trust and security among consumers. A clean, safe and above all comfortable experience was the goal in designing The Apothecary, and the company’s initial store will be located just across the street and slightly north of a Walgreens, four miles north of the major medical district in southwest Las Vegas’ Spring Valley area.
By putting together a sophisticated and streamlined, biometrically-driven front end to handle registration, consultation and procurement, The Apothecary will be able to deliver a stress-free and quick processing experience to patients, all within an enviably safe environment; something which should set the company apart immediately and make them a preferred solution for consumers.
For more information, visit www.gbsciences.com
