The opening of Nevada’s recreational marijuana market has been a catalyst to many companies, however, some have benefited more than others.
Some of the biggest beneficiaries have been the vertically integrated companies as well as the holding companies.
One company that has benefited the most is mCig Inc. (MCIG). The company is levered to several legal cannabis markets and it has benefited from its unique and significant exposure to the Nevada market.
Posts Record Revenues and Enters New Markets
Today, mCig provided its shareholders with the latest project updates for Grow Contractors (its construction and consulting division), as well as its cannabis supply division after it entered the California cannabis market and posted record sales.
mCig said Grow Contractors will shatter its previous record revenue numbers after it took on cultivation management contracts and delivered on its plan for cultivation and production ownership while it mitigated risks through its consulting services. The company said the boom in Nevada will has led to an influx of requests for work. Some updates to mCig’s Grow Contractors division are as follows:
• The $3.5 million, 330,000 square feet cultivation and extraction project known as Solaris will be Nevada’s largest cannabis facility. With all the required approvals in place, Solaris has been focused on construction.
• GWGA (formerly Sin City) was completed by Grow Contractors before the recreational deadline in Las Vegas. Although it is a relatively small facility (6,500 square feet), they have fully optimized the facility with vertical growing technologies to produce as much product as a 10,000 square foot facility.
• Acres Greenhouses: Following a signed contract and design phase approvals, Grow Contractors began work on 40,000 square foot of Greenhouses for Acres Farms in Amargosa, Nevada. Prior to the working relationship, Acres had existing greenhouses which were partially built and about 15% complete. The company will complete the greenhouse project soon.
• Located in a premier Oregon location 20 minutes from Portland, its $1.6 million, 115,000 square foot cultivation project is 90% complete. The facility has the latest lighting technology and is the first United States facility to use advanced DE HPS lighting by DEva Revolution. The two on-site licenses are operated by two master growers and the facility can produce 500 pound harvests on a monthly basis.
• Grow Contractors has many potential growth opportunities in the Oregon marijuana market and its current project slated to be completed by the end of July. The company is in discussions with a client to discuss a management relationship, expansion plans driving additional construction projects, and a potential joint venture.
Cannabis Supply Update
• Cannabiz Supply has become the go to supplier of packaging, accessories, and branding solutions for Nevada’s legal cannabis market. Increasing customer demand has allowed the company to increase its sales team, inventory, and move to a larger warehouse.
• Cannabiz Supply has started to expand its services with a new California sales office that will accommodate the hiring of additional team members and sales reps. A new rebranded website is expected to launch at the end of the month.
An Execution Story
We are favorable on this update and expect to see a favorable reaction from the market. Shares of mCig have come off its recent lows and we expect to see the company continued to report strong growth.
With leverage to massive marijuana markets like California, Nevada and Oregon, we are favorable on mCig’s long-term leverage and believe this is a company that investors need to watch.