Wednesday, July 18, 2018 | 1:42 p.m.
One of the Las Vegas Valley’s more visible marijuana companies has sold a majority of its stake in Nevada’s expanding pot industry for $56 million.
Nevada Organic Remedies, which owns and operates The+Source dispensaries in Las Vegas and Henderson, two cultivation facilities and a 2,500 square foot production facility in the central valley, has reached a deal with a Nevada subsidiary of Toronto-based Green Growth Brands with an expected closing date of Sept. 7.
Under the proposed agreement, the dispensary in Las Vegas, one of two cultivation facilities, the production facility and a license to distribute marijuana to dispensaries would be transferred to Green Growth Brands. Nevada Organic Remedies will keep The+Source dispensary in Henderson and a grow house in Pahrump.
In Nevada, marijuana facilities owners are allowed to transfer their licenses to out-of-state investors vetted by state authorities, said Stephanie Klapstein, spokeswoman for the Nevada Department of Taxation. She said the start of recreational marijuana sales on July 1, 2017, has contributed to an uptick in such transfers.
“GGB Nevada brings a tremendous amount of expertise to the emerging industry,” said Andrew Jolley, the co-owner and CEO of Nevada Organic Remedies. “Our entire ownership and management team is staying in place to partner with them going forward and to help not only with our operations here in Nevada, but in future expansion as well.”
The+Source, which opened in Las Vegas in late 2015 and in Henderson in September 2016, serves more than 800 daily customers, Jolley said. Jolley has served as the president of the Nevada Dispensary Association, the state’s largest advocacy organization, since 2016.
Representatives from Green Growth Brands did not immediately respond to request for comment.
Jolley’s company wasn’t the only marijuana business in Nevada to announce a sale to a Canadian-based company this week. Reno-based Silver State Relief sold its two dispensary licenses to facilities in Sparks and Fernley to Vancouver-based C21 Investments for a price in excess of $50 million, according to a statement.
This week’s announcements follow an increasing trend of license holders in Nevada’s legal marijuana industry selling off to Canadian investors since recreational marijuana was legalized in Nevada in 2016. Ripe with capital backing, the publicly traded Canadian companies have invested millions in marijuana, legalized nationwide in Canada last month, in U.S. pot-legal states.
The plant remains illegal under federal law in the U.S., and many American weed companies have elected to go public on Canadian stock exchanges to avoid retribution from domestic authorities.