Investment activity is heating up in the US cannabis market, amid expected strong growth ahead. Yesterday, MedMen, a Los Angeles-based cannabis management and investment firm, announced today that it has acquired Bloomfield Industries, Inc., one of only five Registered Organizations licensed to operate a medical marijuana business in the State of New York. The acquisition provides MedMen with the opportunity to apply its operational expertise and institutional best practices to one of the largest potential medical marijuana markets in the country.
Founded in 2010, MedMen has operations and exposure across North America, including Canada, Nevada and California, the largest medical marijuana market in the U.S. MedMen is known as one of the industry leaders in institutional practices for cannabis cultivation, extraction, production and retail.
The U.S. legal cannabis market is estimated to be worth about $6 billion in annual sales, and could reach $50 billion within a decade. Medical marijuana is legal in 29 states and recreational marijuana is legal in California, Nevada, Massachusetts, Maine, Colorado, Oregon, Washington and Alaska. New York’s current demand for medical marijuana is relatively small, but the state has been working diligently to make the program more viable, including the recent addition of chronic pain as a qualifying condition. While difficult to predict the full potential of New York’s market, by comparison California’s medical marijuana market is estimated at almost $3 billion today. New York’s population is roughly half of California’s with very similar demographics.
One of the beneficiaries of the booming cannabis market is Swedish light company Heliospectra ($HLSPY), which has deep roots in the indoor/greenhouse agricultural industry. With their sights set on the rapidly expanding U.S. cannabis market, Heliospectra has seen an opportunity to use its leading-edge, light spectrum technology to assist marijuana cultivators in growing better product with better efficiency. Their LEDs lights have been known to replace high-pressure sodium lights and produce quality flowers that stand up to conventionally-grown indoor.