The acquisition of Henderson Organic Remedies, LLC (The+Source Henderson) was disclosed on Dec. 14, 2018, and the transaction closed Aug. 28. The+Source Henderson is the second The+Source dispensary that GGB operates in the Las Vegas area, in addition to The+Source Las Vegas.
“The+Source Henderson has been under our management for the last nine months,” said GGB CEO Peter Horvath, in a public statement. “In that time, we have grown revenue, transactions and gross margin by double digits.”
The Green Growth Brands team targeted The+Source for an acquisition for several reasons, according to company spokesperson Julia Fulton.
“When Green Growth Brands was founded by CEO Peter Horvath and a small team, they visited the strongest 100 dispensaries in the country,” Fulton told Cannabis Business Times. “They familiarized themselves with the landscape and developed a strong understanding of what an exceptional dispensary looked like. During that trip, they visited The+Source, which was not for sale, but after getting to know one another, an agreement was reached. Part of what makes The+Source so exceptional is the team. We are proud to still have that team on board with us.”
In addition to the two The+Source locations, the closing of this acquisition brings GGB’s Nevada assets to a total of one production facility, two cultivation facilities and seven dispensary licenses.
“Nevada has been a great state for our operations, and we are excited to be expanding in up to seven new locations, bringing our total dispensaries in the state to nine,” Fulton said. “There are over 40 million annual visitors to the state, which makes the opportunity for tourist-focused stores extraordinary. But tourism is not the only opportunity; our dispensaries, The+Source Nevada and Las Vegas, are shopped mostly by locals. We love the strong sense of community and their passion for the plant. Nevada also did a great job building their cannabis regulatory framework; we believe it is fair to consumers, patients, taxpayers, the community and businesses.”
In December 2018, GGB began expanding its Nevada footprint through definitive agreements to acquire Pahrump, a cultivation facility operated by Wellness Orchards of Nevada LLC and Panorama WON LLC. GGB plans to complete its expansion of the 12,000-square-foot facility to nearly 150,000 square feet by Q3 of 2019, according to a company press release.
GGB’s brands include not only The+Source, but also CAMP, Seventh Sense Botanical Therapy, Green Lily and Meri + Jayne. The company also has a licensing agreement with the Greg Norman brand to develop a CBD-infused personal care product line.
GGB has expansion plans not only in Nevada, but also elsewhere across the U.S. and abroad. On Aug. 1, the company announced the closing of its acquisition of Florida-based Spring Oaks Greenhouses, Inc., which saw GGB’s expansion to 47 dispensaries across Nevada, Massachusetts and Florida.
In July, GGB announced plans to create the first “360-degree” cannabis company through a combination with Canada-based MXY Holdings LLC, in an effort to expand GGB’s CBD business.
Looking ahead, GGB looks forward to working with and even learning from the team at The+Source.
“We have significant expertise in operating consumer-focused businesses—mainly apparel and personal care,” Fulton said. “What we did not have was expertise in cannabis dispensaries. While the fundamentals of retail operations remain, what we did not understand were the nuances of retailing cannabis. Together, with The+Source team, we have been able to learn from one another and move already exceptional dispensaries forward."