Arizona-based Item 9 Labs Corp. (OTC: INLB) (Item 9 Labs or the Company), today announced a joint venture with Strive Wellness of Nevada, LLC (Strive Wellness), to construct and manage the 20,000 square-foot medical marijuana cultivation and processing facility in Pahrump, Nevada.
Strive Wellness was approved for a medical marijuana license in April and received its Special Use Permit (SUP) in December 2018. The facility will implement sustainable construction practices suggested by Bowden Investment Group, a company specializing in real estate and environmentally friendly development. Strive Wellness is estimated to be producing legal medical marijuana products in the next nine months.
“This joint venture opens up new territory for growth in a larger medical marijuana market, bolstered further by its reciprocity laws,” stated CEO of Item 9 Labs. “This new facility will double our overall capacity and productivity by an additional 20,000 square-feet. We plan to break ground in February and begin producing legal medical marijuana products in September 2019.”
It was important for Item 9 Labs to be involved in Nevada’s medical marijuana program as the Company broadens its national footprint. Nevada is one of the few states that recognizes reciprocity, allowing out-of-state medical marijuana cardholders to legally purchase when visiting. In addition, Item 9 Labs is prepared to anticipate market needs and fluctuations. “When adult-use sales spike, we want to ensure patients still have access to high-grade medicinal marijuana product. We expect to make a major impact with our organic practices and premium flower and concentrates.”
According to analytics firm New Frontier, the Nevada medical marijuana program reached peak registration in Fall 2018 with 25,600 patients, a conservative number not factoring in reciprocity patients. Nevada’s legal market is estimated to be worth $622 million by 2020, a feat attributed to the global appeal of Las Vegas as a tourist destination.
The Strive Wellness site is strategically located an hour from Las Vegas and five hours from Los Angeles and Phoenix. Item 9 Labs currently operates an indoor cultivation facility zoned on 50 acres in Arizona and is a leading developer and manufacturer of innovative marijuana products and proprietary delivery platforms.