Can This Company Stake A Major Claim In Las Vegas' Booming Cannabis Market?

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When news came out that Nevada had legalized cannabis for medicinal use, Mystic Holdings Inc.’s MSTH founders say they wasted no time; they formed the marijuana company in 2014 and waited for their medical licensing. 

But the future of the cannabis industry turned out hazier than expected. While medical marijuana had been permitted, the confusing library of cross-state marijuana laws made it nearly impossible to replicate a cannabis business model outside of Nevada. With recreational use still out of the question, founders Lorenzo Barraco and Michael Cristall say they turned to internal growth. 

Along with Director Sig Rogich, a former campaign director for President Ronald Reagan and assistant to President George Bush Sr., the team focused their attention on the cannabis process. Wholesale procedures, cultivation techniques and brand building were the team’s go-to initiatives for the next eight years, the result of which is the marijuana brand: Qualcun. 

Cannabis became legal for recreational use in Nevada on Jan. 1, 2017, at which point Mystic had grown its Qualcun brand into a wholly-owned subsidiary with over 25,000 square feet of marijuana cultivation and extraction activities. With the doors to the recreational cannabis space finally open in Las Vegas, Mystic started hunting for its long-anticipated chunk of the cannabis market. 

In addition to its wholesale operations, Mystic, through its wholly-owned subsidiaries Picksy, LLC and Picksy Reno, LLC, both of which also do business under the brand name Jade Cannabis Co., operates two recreational/medical retail dispensaries, one in Clark County, Las Vegas and one in Reno. Mystic has also recently acquired two additional retail dispensary licenses, one in the City of Las Vegas and one in Carson City, the capital of Nevada. Mystic plans to operate these two new dispensaries that it is in the process of establishing. 

Las Vegas Welcomes A Cannabis Boom

In a city known for excess, recreational cannabis fits right in. 

In Las Vegas’s 42 million global visitor network and $59.9 billion economy, recreational cannabis in 2017 was the star of the show. In the first year of legalization, Las Vegas cannabis revenue rose to $530 million — 60% higher than the state’s projection for the year.  

Compared to other states’ sales, Nevada significantly outperformed its competition, generating more revenue in cannabis taxes than alcohol just one year after legalization. 

Eyeing the opportunity, cannabis players like Planet 13 Holdings Inc. PLTH PLNHF and Acreage Holdings Inc. ACRHF quickly emerged onto the booming cannabis scene. Mystic’s team, however, believes their history, assets and connections provide them with an advantage over outside contenders looking for a slice of the Vegas cannabis market. 

On March 16, Mystic partnered with Belushi’s Farm to produce a full line of “Blues Brothers” cannabis products, including packaged flowers, pre-rolls, vape carts, edibles and concentrates, through its wholly-owned subsidiary Qualcan. Mystic reports that it will also produce and distribute other Belushi’s Farm brands such as premium brands Chasing Magic (Jim’s Secret Stash), Captain Jack’s (The Smell of “SNL”) and its value brand Good Ugly Weed. 

“Qualcan is excited about its partnership with Belushi’s Farm, and I am thrilled to be working with my friend Jim again. Through our wholesale and retail outlets, we will be introducing Belushi’s Farm and the Blues Brothers brands to Nevada and specifically to the 42 million visitors to Las Vegas yearly,” Qualcun President and Co-founder Michael Cristalli said. “Nevada is a limited license state with cannabis revenue exceeding $1 billion in 2021. We expect to capture the Nevada market with an emphasis on the iconic Las Vegas strip. Together, we look forward to building the brands and forging a long-term relationship.”

Will Mystic finally capture the market share it’s had its eyes on for so long? 

Keep track of the company’s developments here to find out. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Photo by 2H Media on Unsplash

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