Canndescent Invests $25.8M For Expanded Cannabis Operations In Massachusetts, Michigan And Nevada
California-based luxury cannabis brand Canndescent is expanding its operations beyond the state. In doing so, it's now the first California company to become a multi-state operator in the cannabis space.
What To Know
The company said it became California's first MSO by investing $25.8 million to purchase buildings and operating licenses in three legal U.S. cannabis markets: Massachusetts, Michigan And Nevada.
Canndescent CEO Adrian Sedlin pushed back on the MSO title to some degree.
"We’re sort of the ‘anti-MSO’ or as I like to call it, we’re an MSBO, Multi-State Brand Operator, having nailed brand and execution first and now rolling up assets with intentionality and understanding," Sedlin said in a press release.
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Why It Matters
The acquisitions allow the company to enter less competitive markets, targeting those that provide preferable price dynamics as well as have lower baselines for product quality.
The acquisitions add 135,000 square feet in capacity for the newly minted MSO, with recurring revenue estimated at $75 million.
The acquired licenses and spaces will now be retrofitted to support Canndescent's cultivation and extraction efforts. By the end of 2020, Canndescent said it plans to stake its claim in eight to 12 markets across the U.S.
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