- Combined adult-use and medical cannabis sales in Nevada reached nearly $530 million in 2018, the first full year of legal recreational sales
- The company’s acquisition of Vegas Valley Growers North in Las Vegas included production facilities, four state licenses and popular Nevada vape brand ‘Vegas M Stick’
National cannabis holding company IONIC Brands Corp. (CSE: IONC) (OTC: IONKF), formerly Zara Resources Inc., recently added to its multistate portfolio of award-winning cannabis brands with the purchase of Vegas Valley Growers North (“VVG”), a Las Vegas, Nevada, state-licensed cultivation and manufacturing firm for medical and recreational cannabis. The vertically-integrated, cash-flow positive opportunity brings IONIC additional projected 2019 revenue of $6.6 million, with expected gross profits of $3.1 million and EBITDA of $2 million, the company stated in a news release (http://cnw.fm/Jiia9).
“The Nevada cannabis market is one of the cornerstone markets in the U.S. for building cannabis brands,” IONIC Brands Chairman and CEO John Gorst stated in a news release. “With over 42 million visitors to Las Vegas per year, the VVG acquisition will provide our Ionic vape and Zoots edibles brands valuable exposure to national and international cannabis consumers.”
The VVG acquisition includes a leased 1,700-square-foot production facility and five state licenses for cultivation and manufacturing of both medical and recreational cannabis. VVG is also building a 60,000-square-foot manufacturing facility and has plans for a second 80,000-square-foot facility. Distribution licenses for both medicinal and recreational cannabis products are being processed by state regulators.
Also included in the acquisition was VVG’s popular Nevada vape brand, ‘Vegas M Stick’, which partners nicely with IONIC Brands’ flagship recreational branded product – a stylish and sophisticated premium vape pen line called ‘IONIC’ that has earned customer loyalty and a reputation as a consistent top 10 vape brand in Washington state.
“IONIC vape pens are the perfect complement to the Vegas M Stick. Together, these luxury brands are set to have a massive presence in the Nevada market for years to come,” VVG CEO Mitch Wilson added.
According to the Nevada Department of Taxation, combined adult-use and medical cannabis sales reached nearly $530 million in 2018 (the first full year of legal recreational sales) with the state collecting nearly $70 million in tax revenue. Nevada’s first year with a legal adult-use market exceeded revenue projections, and the state expects to see continued growth with revenues remaining strong in 2019, as the tax department detailed in a news release (http://cnw.fm/WS2oQ).
Established in 2015, IONIC Brands has demonstrated its ability to expand and operate multiple cannabis concentrate consumer brands in markets across the western United States (http://cnw.fm/byXB9). The company continues to strategically expand nationwide in an effort to remain a leader of the highest-value segments in the cannabis market.
For more information, visit the company’s website at www.IONIC.social
NOTE TO INVESTORS: The latest news and updates relating to IONKF are available in the company’s newsroom at http://cnw.fm/IONKF
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