Item 9 Labs Corp. (OTCQX:INLB) announced the accelerated growth of its dispensary franchise model, Unity Rd. across the U.S. with successful expansion into multiple new markets over the past two months.
The company has two dispensaries open in Colorado and Oklahoma with development across another 10 states, driven by more than 20 entrepreneurial groups. Item 9 Labs Corp. anticipates this positive momentum to continue throughout 2022 with a focus on fast-tracking franchise development by supporting Unity Rd. franchise partners in acquiring existing dispensaries in Colorado, among other target markets.
Expansion into New Cannabis Markets
The Item 9 Labs Corp. team recently assisted two of the brand's first partners in South Dakota and New Mexico in securing state and local approval to operate in their markets' cannabis programs.
The brand's South Dakota partners B.J. Olson and Adam Jorgensen were awarded a license to open one of the first dispensaries in Hartford, a suburb of Sioux Falls, through the South Dakota Medical Cannabis Program. They broke ground on their shop on February 25, 2022 and anticipate being operational this summer.
Meanwhile, New Mexico recently opened to adult-use cannabis on April 1, 2022, and the market is booming. Dispensaries hit nearly $5.2 million in sales for adult-use cannabis products alone within the first weekend, according to the Office of Governor Michelle Lujan Grisham.
Unity Rd.'s New Mexico partner was recently awarded three licenses by the state and plans to open his first shop in Ruidoso with two additional cities to follow.
"The relationship between us and our local partners is mutually beneficial, as we together leverage a proven and highly scalable business. We have worked hard to create a repeatable road map that allows eager cannabis entrepreneurs a direct and de-risked route into the complex U.S. cannabis market," said CEO of Item 9 Labs Corp., Andrew Bowden, adding that the market is set to hit $50 billion in revenue by 2025.
"The recent momentum of our one-of-a-kind franchise model is a testament to the support our team provides our franchise partners," Bowden continued. "With increased legalization and acceptance of cannabis, we anticipate building on top of our recent successes and furthering our national footprint."
The company is also in the midst of re-branding the Unity Rd. shop in Oklahoma City and anticipates a grand opening celebration this summer.
Accelerating National Footprint Through Acquisitions
Item 9 Labs Corp. is actively growing the Unity Rd. national footprint through accretive acquisitions of existing dispensaries that will be converted into Unity Rd. shops and has had recent activity in the Denver market. In early March, the company closed its acquisition of an existing dispensary retail license and storefront in Adams County, Colorado. This will be the brand's first corporate-owned shop and is anticipated to open this June. Item 9 Labs Corp. also signed an asset purchase agreement with The Herbal Cure, a medicinal and recreational dispensary and cultivator operating in the Washington Park neighborhood of Denver. The dispensary generated revenues of $5.4 million last year and will be Unity Rd.'s first future flagship location.
Photo: Courtesy of PRNewsfoto/Item 9 Labs Corp
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