Medmen opens large state-of-the-art cannabis factory
April 11 2018 saw a new era of cannabis expansion in Nevada as MedMen, a marijuana company with its base in LA opened the world’s most high-tech cannabis factory in Sparks.
This brand-new facility covers an impressive 45,000 square feet and has been designed to set the bar for the rapidly expanding cannabis program across the state. Already, only six months into the state’s legalization of recreational marijuana sales, over $30 million of tax revenue has been raised from the industry and overall, there have been sales worth around $200 million of recreational weed across the Silver State in the same period.
It is inevitable that MedMen’s enormous factory is sure to boost the state’s economy, producing 10,000 lbs. of quality marijuana every year to supply the burgeoning medical and recreational cannabis market.
Inside TheMedMen Factory
As you might expect of a factory that cost $15 million to build, MedMen’s facility to the east of Reno features 26,000 square feet of greenhouse space as well as a flowering room that has capacity to grow 25,000 plants. It uses a sustainable irrigation system which captures all of the water coming off the crops and allows it to flow back to the central tank. This system isn’t just the best in its class, it’s unique anywhere in the world.
The facility also comprises CO2 and butane extraction rooms, chocolate and bakery kitchens, a high-tech testing lab and a tissue culture laboratory where strains and plants will be cloned. It’s clear that this factory goes well beyond standard testing and extraction, with specialist equipment that has been taken from the oil, gas and chemicals industry and harnessed for use within the cannabis industry.
A Nationwide Expansion
The MedMen facility is set to be a game changer within the whole marijuana industry. With assets already in place in New York and California, the company has already acquired a Las Vegas licensed dispensary – just one of three that is planned for Sin City. The Sparks factory will now be used as a model for other factories across the country, and MedMen are already replicating its design in the factories that it is constructing in Hot Springs, CA and Utica, NY.
A Burgeoning Industry
The legalized cannabis industry is seeing impressive growth across the USA as increasing numbers of states are jumping on the marijuana bandwagon in an attempt to boost the state coffers. Medicinal marijuana has already been made legal in 29 of the states plus Washington DC, where recreational use has also been legalized, as it has in 8 other states.
The projected figures for marijuana tax revenue are impressive – growth from $745 million in 2017 up to $2.3 billion by the year 2020 is expected according to New Frontier Data, a market research firm specializing in the cannabis industry. MadMen are working under the belief that these figures are barely scratching the surface of the cannabis industry’s potential, and they estimate that the residents of Los Angeles alone already consume $1 billionworth of weed, most of which they acquire from the black or grey market.
As more Americans come out in support of legal marijuana, it’s no surprise that MedMen is one of the largest and most rapidly growing companies in the USA today. Valued at approximately $1 billion and reporting a revenue growth of 480% in 2017, they have increased their number of workers from just 15 three years ago to over 700 last year.
Most of MedMen’s funding (in the sum of approximately $150 million) has been raised from private equity due to the fact that cannabis remains illegal under Federal Law which has meant that getting loans has been a challenge. The company have also been keen to purchase their facilities outright since the cost of real estate is exponentially higher for marijuana businesses.
MedMen are now set to float their company on the stock market later this year in order to increase access to capital. However, since companies involved in the marijuana industry are banned from being listed on the New York Stock Exchange or NASDAQ, it will instead be going public in Canada.
Indeed, it seems that the marijuana industry faces many more challenges before it finally gains an equal footing with other companies. Yet, MedMen’s accomplishments in Nevada are just part of their ongoing effort to boost the legal cannabis industry and to work towards a long-term goal of national and federal legalization.