Medicine Man Technologies Inc (SHWZ)

[Marillionaire]

https://www.reddit.com/r/SHWZ/comments/yz4syl/recreational_cannabis_sales_skyrocket_in_new/
Recreational cannabis sales skyrocket in New Mexico (11/15/22)
The following article on the New Mexico Recreational Cannabis market was published on November 15th, 2022:

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Recreational cannabis sales skyrocket in New Mexico (koat.com)

Recreational cannabis sales skyrocket in New Mexico
Despite rise in sales, oversaturation is a cause of concern for some.
Jessie Hunt, spokesperson for Schwazze said it's been a boost for the economy.

"We are continuing to see that people are coming into the legal market to purchase their cannabis, which is wonderful. That is exactly what we want to see in the state. We are able to continue to hire staff, pay strong wages in New Mexico and people really want to work in the industry, which is wonderful," Hunt said. "We are opening a few more stores. We're also trying to make sure that we're doing it in a way that is super responsible for the communities that we're in and that are in communities that really still have some high demand."

According to the latest data from the state's Cannabis Control Division, over $25 million in recreational sales was recorded in October — the highest it's been since the legalization of recreational sales in April.

However, there has been a decrease in medical sales.

Eli Goodman, CEO of Best Daze said while continuous growth is great for the cannabis industry, there may be challenges.

"The job growth is huge. I mean, companywide, our company alone has over 100 employees. We're moving through cultivation, manufacturing dispensaries. This is our eighth dispensary opened and we're one of many groups. So, there's a lot of opportunity, a lot of growth and a lot of jobs. That's positive for the economy, gets money in people's pockets and overall generates tax dollars for the state, and we need it right now as a state," Goodman said. "There's no limit on license around production, and there's a question — when does this market stabilize? Does it get saturated? Are there some people that are going to put money into businesses not be able to keep things going, because it's an oversaturated market — not be able to make it through that extension where they need some capital to keep it going."

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It is clear that the New Mexico Adult Recreational Market has been a boon for the sector and Schwazze is keen on gaining market share to grow with the industry growth with goals of ending this year with at least 16 to 17 dispensaries (versus there starting count of 10 at the close of the R.Greenleaf acquisition earlier in the year) and to have 25 dispensaries by September 2023 (as discussed in a recent interview (see link below for more details):

www.reddit.com/r/SHWZ/comments/ygryev/nms_cannabis_supply_steady_six_months_in_101422/

During the Q3'22 earnings call, management made it clear that the preferred method of dispensary growth in the New Mexico will be "organic" growth targeting key locations (e.g., Border Towns adjacent to Texas and other markets).

We believe that Schwazze, and its vertical integration strategy, will be key in outpacing the overall New Mexico market in growth (both same-store sales and through greenfield stores).

IRR