Today, GrowGeneration announced that it has signed a 4-year lease on a 5,000 square foot facility in Las Vegas, Nevada, marking the company's 14th store. The Las Vegas location will serve as a retail and warehouse location, and will service the growing number of both commercial and home growers in the Las Vegas North market.
Nevada presents significant growth opportunities for GrowGeneration in the legal cannabis market. The potential is attributed to the state's rank as a top tourism destination, generous patient reciprocity laws, and the allowance for medical cannabis businesses to be formed as for-profit enterprises. Recreational use sales began in July of 2017, and according to New Frontier, the combined medical and recreational use sales in Nevada are expected to reach nearly $622 million by 2020. A major key to the industry's growth will be the demand from the state's strong tourism market, with an estimated 55 million visitors in 2017 alone.
Commenting on GrowGen's expansion into Nevada, Darren Lampert, Co-Founder and CEO, said, "The passage of Nevada's recreational use legalization measure opens up the market for cultivation expansion like we have not seen before in the US. With this additional location of retail and warehouse space, located in the Northern Las Vegas area, GrowGeneration can now service the 100's of new commercial cultivations who are coming into the Las Vegas market."
"Executing and opening our GrowGen Nevada retail and warehouse operations, furthers our business plan to aggressively expand our business. With the recent recreational legalization in Nevada, California, Massachusetts and Maine, and medical legalization in Florida, we consider those states as our key expansion markets. GrowGen is now operating, at an annualized revenue run rate of over $15.0 million. We believe we're well positioned to continue to execute our expansion growth strategy, to offer a one-stop, personalized shopping solutions for both the commercial and home growers."