A few cannabis companies are reaping riches after the latest Nevada dispensary licensing round.
Green Growth Brands and TapRoots Holding have each been awarded seven licenses to operate in the state while GreenMart NLV took home four.
This month Nevada awarded 61 conditional recreational dispensary licenses, including 31 in Clark County. Currently, there are 65 dispensaries operating in the state.
The Nevada Department of Taxation, which oversees the industry, declined to name the awardees until they receive a final state license after inspection. That could take up to a year.
Green Growth and GreenMart, which are both publicly traded, issued statements announcing their awards. TapRoots CEO Shane Terry confirmed by email his firm received seven licenses.
“We certainly have the intention of opening up all seven locations,” Terry said. “With the addition of these new licenses we are now vertically integrated as previously TapRoot only had cultivation and production here in Nevada.”
Many companies were looking to snatch up a state dispensary license. Las Vegas in particular remains a top market for many cannabis companies seeking to build a national brand because of the large number of tourists who pass through town.
“Our presence in Nevada has been strategic from the start. With 3 million residents and 42 million annual visitors this is a market like no other, which is why we chose Nevada as the first state where we will present the full expression of our brands, products and services,” Green Growth Brands CEO Peter Horvath said in a statement.
Nevada has so far lived up to the hype. The state posted nearly $425 million worth of recreational marijuana sales in its first 12 months, beating expectations. Brokerage firm Canaccord Genuity forecasts Nevada sales will reach $1 billion by 2022.
Surging sales mean licenses can fetch a hefty buck.