Momentum Public Relations
Press Release: March 12, 2019
Grown Rogue International Inc. (CSE:GRIN | OTC: NVSIF) (“Grown Rogue” or the “Company”), a vertically-integrated, multi-state cannabis company, with licenses and operations in Oregon and California, is bringing its winning brand and business model which generated compound monthly sales growth of 14% during the 2018 calendar year in Oregon – one of the world’s most competitive cannabis markets – into the newly legalized recreational cannabis market in Michigan. Grown Rogue anticipates gaining meaningful traction for its brand through its local partnership with licensed operators in the State of Michigan.
Oregon is among the most competitive cannabis markets in the United States based on total active cultivation and licenses per capita. According to an August 2018 report from Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA), “Oregon has more than a thousand licensed recreational marijuana growers, with roughly 900 more in the queue to receive licenses. There’s one licensed cultivation operation for every 19 consumers.” Despite this competition, Grown Rogue launched its first cannabis products in late 2017 into the Oregon market and gained sales traction and market share as a result of high-quality products, unique branding and effective marketing. By the end of 2018 Grown Rogue branded products were available in more than half of Oregon dispensaries.
A number of factors contributed to Grown Rogue’s overall success in 2018:
- Optimization of cultivation and distribution teams;
- Major increase in outdoor harvest from 2017 to 2018 by over 50% based on training and efficiency programs implemented in early 2018;
- Accolades in product quality in Oregon by setting outdoor potency record and winning the prestigious Growers Cup in 2 of 3 categories;
- Established partnership with international award winning chocolatier;
- Expansion into California with a 16,000 sq ft micro business facility with retail, processing, and distribution licensing.
“Launching Grown Rogue in Oregon required fastidious planning and execution in order to be successful,” said Obie Strickler, Founder and CEO. “We properly navigated the regulatory environment for recreational cannabis and refined the preferred consumer experience around brands and product selection, and established innovations in product development and packaging. Operating in a State like Oregon that was early to legalize cannabis has provided a tremendous amount of intellectual, operational, and cultivation expertise. We also have significant understanding of the cannabis consumer and evolving cannabis products and formats. We are taking this expertise and applying it into new states and are particularly optimistic about the tremendous opportunity in Michigan.”
Michigan is the first state in the Midwest to vote for the legalization of recreational cannabis . Michiganhas the largest medical cannabis population per capita and is second only to California in total medical users. As a relative comparison, the state of Michigan has a population of approximately 10 million people and about 313,000 registered medical cannabis patients according to Michigan Live, or 3.1%, compared to Canada with a population of approximately 38 million, which had 342,103 registered medical patients at September 30, 2018 according the Health Canada, or 0.9% where cannabis is fully legal at both provincial and federal levels.
By any measure, Michigan has one of the most active medical cannabis markets in America which is a leading indicator in the potential size of the recreational market.
Number of legal medical marijuana patients in the U.S. as of May 2018, by state according to ProCon.org:
STATE |
# OF MEDICAL MARIJUANA PATIENTS |
STATE POPULATION |
# OF PATIENTS PER 1,000 RESIDENTS |
Michigan |
269,553 |
9,9962,311 |
27.06 |
California |
915,845 |
39,536,653 |
23.16 |
Colorado |
88,946 |
5,607,154 |
15.86 |
Oregon |
45,210 |
4,142,776 |
10.91 |
Washington |
80,818 |
7,405,743 |
10.91 |
Massachusetts |
48,265 |
6,859,819 |
7.04 |
Grown Rogue’s current expected portfolio in Michigan includes two strategically positioned retail centers (known as provisional licenses) in Hazel Park and Midtown Detroit as well as a 19,000 sq ft cultivation center in Detroit. Additional license acquisitions are being reviewed.
“Our expansion into Michigan has the potential to add substantial value to the overall business. Our track record of growth to date should give current and future shareholders the confidence that we will continue to perform in the exciting Michigan market,” added Jacques Habra, Chief Strategy Officer.
Grown Rogue expects Michigan operations to begin generating revenue in late 2019.
About Grown Rogue
Grown Rogue International (CSE: GRIN | OTC: NVSIF) is a vertically-integrated, multi-state cannabis company curating innovative products to provide consumers with the right cannabis experience. Each of Grown Rogue’s products and strains are categorized and marketed based on unique effects and designed for the full range of a consumers’ lifestyle. Grown Rogue is scaling the vertically integrated model into multiple states by incorporating best-in-class manufacturing facilities and a proprietary distribution platform based on Microsoft technology. Grown Rogue’s diverse cannabis product suite includes premium flower, patent-pending nitrogen sealed pre-rolls, oil and concentrates, and edibles featuring a partnership with world-renowned chocolatier, Jeff Shepherd.