iAnthus Capital Holdings (CSE: IAN) announced today that they pass their final inspection from Massachusetts Cannabis Control Commission at their adult-use cultivation and production facility. The approval takes effect on January 27th.
This will give iAnthus the ability to supply the state's adult-use market with flower, concentrates, edibles, and other auxiliary products.
The facility is 36,00 sq. ft. and currently supplies their medical dispensary in Boston. This means production has already ramped and minimal lead time will be required before products can be distributed to iAnthus' Worcester dispensary (when constructed), along with the remaining 35 adult-use dispensaries.
Based on average 30 grams per square foot average yields, this will generate 1,200 kg of cannabis on an annual basis. At an average price of $10 per gram, very reasonable in a supply-constrained market, that's good for $12.6 million in sales.
As we highlighted in a previous article, the Massachusetts market is expected to grow substantially. It nearly topped $400 million in its first year, after starting with a dispensary constrained market early in the year.
With a sizeable greenhouse operation already producing cannabis for the medical market, iAnthus is now well-positioned to capitalize on a supply-constrained market.
"Demand for adult-use cannabis in Massachusetts has continued to exceed supply and stock-outs are endemic across the market. We look forward to the opportunity to bring safe, high quality, well-curated products to the adult-use market just as we have to the medical market to help address this problem," said Hadley Ford, CEO of iAnthus.
With analysts forecasting the market to exceed $1 billion by 2021, Massachusetts is a state all serious MSO's need to have a presence in.
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