iAnthus Capital Holdings
Before diving into IAN’s update, we wanted to put the market’s rapid growth into perspective.
The Massachusetts Market
In 2019, the first full year of sales, the Massachusetts marijuana market expanded rapidly. As of today, sales have topped $377 million year-to-date.
2019 YTD Massachusetts Marijuana Sales
It’s worth noting that the slower sales earlier in the year were due to the limited number of operating retail locations and supply challenges.
As of today, there are 36 licensed dispensaries with 43 in a provisional stage (inspection phase). Additional dispensaries will increase sales potential and create a larger consumer base, benefiting all MSOs in the space.
During the third week of November, the most recently available data, average daily sales were $1.43 million. At that run rate, annual marijuana sales would top $500 million. However, the market is expected to be much bigger.
By some estimates, it could eclipse $1 billion in annual sales by 2021. Looking at the current growth rates and the number of dispensaries in the pipeline and that seems like a very reasonable estimate.
On top of that, these sales have been achieved without a single dispensary open in Boston, the largest city in the sate.
Suffice to say, there is a lot of growth potential in Massachusetts, and that’s why investors should be excited to see iAnthus focused on this opportunity.
Dispensary Expansion Plans
They received approval from the state to commence construction on their first planned dispensary, under the subsidiary Mayflower Medicinals. The dispensary will be located in Worcester, the second-largest city in Massachusetts.
After completion of construction, expected in late Q1 2020, they will work with the state Cannabis Control Commission (CCC) to receive approval to start operations. iAnthus has plans to open two additional adult-use dispensaries during 2020.
Cultivation Capacity Increase
The company has a 36,000 sq. ft. marijuana cultivation and processing facility in Holliston, operational since January 2018 for medical-only patients.
In November, the CCC approved the facility for adult-use cultivation and production, subject to final inspection. This gives iAnthus the ability to meet the rapidly growing demand in Massachusetts’ adult-use marijuana market.
Based on strong wholesale demand, iAnthus is anticipating opening a second cultivation and processing facility (37,700 sq. ft.). This will include ethanol extraction that will increase production capacity for their popular MPX-branded products.
iAnthus Capital Holdings is a market awareness client of Capital 10X.
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