Growgeneration Corp (GRWG)

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OTC NEWS! GrowGeneration Signs Lease to Open 10,000 Sq. Ft. Oklahoma Cultivation Equipment and Grow Supply Operation

PR Newswire

DENVER, CO, Aug. 28, 2018

DENVER, CO, Aug. 28, 2018 /PRNewswire/ - GrowGeneration Corp. (OTCQX: GRWG), ("GrowGen" or the "Company") one of the largest specialty retail hydroponic and organic gardening stores, selling to both the commercial and home cannabis markets, with currently 18 locations, today announced it signed a lease to open a 10,000 Sq. Ft. warehouse and product showroom to service the emerging legal cannabis cultivators in the State of Oklahoma. The Company plans to open this store for business on October 1,2018. The Oklahoma store will be the Company's 19th store.

Oklahoma Market Overview

Oklahoma voters on June 26,2018 approved an open-market medical marijuana ("MMJ") program: no caps on the number of business licenses, and doctors can recommend MMJ for any patient. Marijuana Business Daily projects that such an unrestricted MMJ market could generate $100 million to $150 million in annual sales several years after the launch. With Oklahoma's passage, MMJ now is legal in 31 states and Washington DC.

Key Details in the Initiative Include:

Individuals or businesses could apply for licenses to commercially grow, process, and dispense MMJ. The licenses would cost $2,500 each. The state would be required to approve or deny an application within two weeks; there would be no explicit limit on the number of MMJ businesses.
Only Oklahoma residents would qualify as business applicants, but up to 25% of the ownership of the MMJ businesses could be from outside the state. Those ownership positions would need to be disclosed.
Sales of MMJ products would be taxed at 7% (on top of local and state taxes) to cover regulatory expenses.
Patients would need to get a physician's signature to use marijuana, but there are no restrictions on qualifying medical conditions.
Licensed patients could possess up to 3 ounces of marijuana on their person; at home, they could possess 1 ounce of concentrated marijuana, 72 ounces of edibles and 8 ounces of marijuana. They also could grow up to six mature plants and six seedlings for their own consumption.
Darren Lampert, Co-Founder and CEO, said, "As part of our expansion and growth strategy, GrowGen identifies emerging markets, like Oklahoma, and sets a plan in place to be the "first mover" to offer cultivators a one-stop operation for all of their grow supply needs. The favorable laws, that include home growing and an unlimited number of commercial cultivation licenses, makes Oklahoma a great new market opportunity for us. GrowGen, with its Oklahoma operation, will be operating in 7 states, with 19 commercial and retail stores, with over 100,000 sq. ft. and servicing hundreds of licensed commercial growers. We are now forecasting a revenue run rate of approximately $42 million coming out of 2018 and $10.5 million for Q4 2018."

https://www.otcmarkets.com/stock/GRWG/news/GrowGeneration-Signs-Lease-to-Open-10000-Sq-Ft-Oklahoma-Cultivation-Equipment-and-Grow-Supply-Operation?id=202165