In August, 2020, emerging cannabis and hemp-CBD holding company Pure Harvest Corporate Group, Inc. succeeded in acquiring Sofa King Medical Wellness Products, LLC (“SKM). The latter is a "vertically integrated cannabis company operating a dispensary, cultivation, and processing facility in Colorado. Founded in 2014, SKM opened a new dispensary in June 2020 which achieved massive growth in revenue over a very short period of time. Moreover, the retail space is state-of-the-art as it is "one of the only solar-powered dispensaries in the world."
Primary founder Neale Gibbons who has had twenty-plus years of experience as a cannabis and hemp operator was excited about the acquisition. In a press release, he stated: "This is a milestone for both entities and it provides a solid foundation from which we will look to scale both nationally and internationally."
Image Credit: Pure Harvest Corporate Group, Inc.
What's Driving This Trend
- Vertical Integration in Cannabis Industry
- Companies can adopt a vertically integrated model to streamline their operations, reduce costs, and increase revenue in the cannabis industry.
- Sustainability in Cannabis Retail Space
- Sustainability-focused innovation in retail space could create opportunities for companies looking to differentiate themselves in the cannabis industry.
- Consolidation in Cannabis Industry
- Consolidation in the cannabis industry can lead to increased market share and competitive advantage for companies looking to expand their reach.
Who This Affects Most
- Cannabis Industry
- As the cannabis industry continues to grow, there are opportunities for companies to innovate within its various sectors.
- Renewable Energy Industry
- The cannabis industry's focus on sustainability presents new opportunities for innovation in the renewable energy industry.
- Mergers and Acquisitions Industry
- The trend of consolidation in the cannabis industry presents opportunities for investors and M&A firms to capitalize on the growing demand for cannabis products.
