Marapharm Ventures Inc (OTCMKTS:MRPHF) has quickly become one of the most active names among cannabis investors. This comes as the company is well positioned to take advantage of Nevada’s marijuana laws. Nevada remains a key market for the cannabis industry after voters in Nevada approved Question 2 on November 8th.
The initiative legalizes the possession of up to one ounce by adults that are 21 years old or older, legalizes the cultivation of up to 6 plants by adults 21 years old or older and also permits that those adults can possess the marijuana produced by the plants on the premises where the plants were grown. There is a 12 plant limit per residence and if a residence is located within 25 miles of a licensed marijuana dispensary, home cultivation is prohibited.
It’s Marapharm’s position in Las Vegas that has cannabis investors buzzing. Last month, Marapharm purchased the remaining 25% in EcoNevada LLC, a private company based in Las Vegas, Nevada. Marapharm now owns 100% of the issued and outstanding shares of EcoNevada. EcoNevada has provisional marijuana licenses and special use permits over 204,000 square feet of cultivation and 16,000 square feet of production. CEO Linda Sampson said:
“We have now completed the deal which was made a year ago, when we purchased control of EcoNevada. The price for the minority position of 25% was 100,000 shares of Marapharm, as agreed to in the original transaction, to suit the needs of the sellers for tax and other reasons. Since recreational use of marijuana has been legalized in the state of Nevada, EcoNevada has increased in value to Marapharm, both as an asset and as a main vehicle to drive revenue in Nevada.”
Marapharm has started construction on its 7 acres of property located in the Apex Industrial Park in Las Vegas Nevada. Two 5000′ sq. ft. starter buildings were ordered from Ceco Buildings and were scheduled for delivery on December 19th. Preliminary site work is done and the building site has been mobilized with Patriot Grading preparing the site for forms and slabs. Signage with the company logo and the slogan “watch us grow” is prepared on a 12 foot by 20 foot billboard to be erected on the site. Master and temporary fencing and dust permits are in place. Furthermore, a deal has been done with the Master Association for dirt which is needed for construction and the material is available at no cost to Marapharm.
Overall, Marapharm has 300,000 square feet of medical marijuana licenses for it’s land and facilities in Washington and Nevada. The company has also applied in Canada to Health Canada for a MMPR (Production and Sales) license and has passed the necessary security clearances. The application is currently in the in-depth screening process. In September 2016, Health Canada contacted Marapharm with a provision to amend its application to allow for the new regulations, ACMPR.
Marapharm is also expanding into California. On November 16, the company entered into an an agreement to purchase an industrial facility in southern California and three medical marijuana licenses for manufacturing, cultivation, and retail uses. The land size is 40,510 square feet and the existing building size is 6,875 square feet, with a 19-foot-ceiling clearance, for a purchase price of $3.2 million based on $450 per square foot for the building and $65 per square foot for the land. The yard area is paved and suitable for greenhouse growing.
On November 22, Marapharm announced another deal to purchase an industrial facility in southern California and three medical marijuana licenses for manufacturing, cultivation, and retail uses. The land size is 0.32 acres and the existing building size is 2,756 square feet, with an 18-foot-ceiling clearance, for a purchase price of $950,000, based on a purchase price of less than $350 per square foot. There is excess land for expansion on the corner parcel and the yard area is paved and suitable for greenhouse growing.
Marapharm also has automated cannabis machines, which will be located within retail outlets or dispensaries in Washington and Nevada. ACMs will stock and only sell Marapharm products in states where Marapharm owns the cultivation facilities and is permitted to act as a retail dispenser. In other areas, the machines will be leased to growers or will occupy floor space in retail outlets and dispensaries under revenue participation agreements.
Currently trading with a market cap of $70 million, MRPHF has a lot of irons in the fire and has a jump on its competitors. With the company’s potential in Nevada and now California, MRPHF looks to be one of the must-own stocks in the cannabis space. We will be updating our subscribers as soon as we know more. For the latest updates on MRPHF, sign up below!
Disclosure: We have no position in MRPHF and have not been compensated for this article.