In January 2018, iAnthus acquired substantially all of the assets of GrowHealthy Holdings, LLC (“GrowHealthy”), securing control of one of the 13 current medical marijuana licenses in Florida. GrowHealthy and its affiliates were formed in 2014 to apply for a license as a Dispensing Organization under the original Florida low-THC medical cannabis program through its affiliated partner, McCrory's Sunny Hill Nursery, LLC ("McCrory's"). McCrory's was licensed as a Dispensing Organization by the Florida Department of Health on December 21, 2016, and then subsequently licensed on July 5, 2017 to cultivate, process, transport, and dispense full-strength medical cannabis as a Medical Marijuana Treatment Center under the new Medical Use of Marijuana Act passed in June 2017.
GrowHealthy boasts a state-of-the-art 200,000 square-foot cultivation and processing facility on a 33-acre campus in Lake Wales and a 4,500 square-foot flagship dispensary location in a densely populated area of Palm Beach County. GrowHealthy has the opportunity to open up to 30 dispensaries in Florida, and has secured locations in Tampa, West Palm Beach, Orlando, and Deerfield Beach. Sales have already commenced through state-wide product delivery.
Operational highlights for GrowHealthy:
- Signed leases for locations in Palm Beach County, Orlando and Tampa in high traffic, densely populated areas;
- Dispensary in Tampa expected to open in Q3 2018, dispensaries in Palm Beach County and Orlando are expected to open in Q4 2018, and dispensary in Deerfield Beach expected to open in Q1 2019;
- Expect to secure an additional five locations by year end 2018;
- First delivery on November 13, 2017;
- Select dispensaries will be delivery hubs;
- Cultivation initiated in April 2017 and product is being accumulated to ensure robust supply for Q3 2018 dispensary openings;
- Over 25,000 square feet of the cultivation and processing facility has been built out to-date, fitted with appropriate areas for extraction, packaging, vegetation and flowering; and
- Capacity to retrofit an additional 175,000 square feet for continued cultivation build-out.
Why We Love Florida
Florida is one of the largest states in the U.S. with a population of nearly 21 million people, which includes a favorable demographic of a large percentage of older adults. Since the implementation of full-strength medical cannabis rules in Florida, the medical marijuana program has witnessed strong growth in its registered patient base, adding on average approximately 300 patients a day. The program also features a wide range of indications and ingestion methods. Currently, the program generates approximately US$3 million of weekly revenue and the market is estimated to reach US$1 billion by 20201.
Pursuant to existing Florida medical marijuana statute and regulations, GrowHealthy is permitted to immediately begin delivery of finished products and to open and operate up to 30 dispensaries. This number of allowable dispensaries will be increased with every 100,000 patients that are added to the state medical marijuana registry.
1. The State of Legal Marijuana Markets: 5th Edition, ArcView Market Research.