A subsidiary of craft cannabis company Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) has received regulatory approval from the Michigan Cannabis Regulatory Agency to exercise its option to acquire 87% of the membership units of Canopy Management, LLC (Canopy).
Grown Rogue Unlimited, LLC (GRU) now owns an 87% interest in Canopy, which owns a 60% controlling interest in Golden Harvests, LLC (Golden Harvests).
The news comes after Grown Rogue signaled to investors in May 2021 that it would exercise its option to acquire 87% of the membership units of Canopy. Golden Harvests was one of the first licensed Michigan operators to receive a Class C grow license in late 2018, with their first harvest in the spring of 2019.
“Exercising this option is an important milestone as we continue to drive success in Michigan, despite the volatility as this market matures,” said Grown Rogue CEO Obie Strickler. “Michigan is an important strategic asset for us and has validated our ability to transfer our systems and process to new states.”
“Having recently completed our planned expansion in Michigan, we can focus even more heavily on quality genetics with new proprietary strains coming to market in 2023 that will highlight our focus on providing the best products at the best price to our rapidly expanding consumer base,” Strickler added.
Golden Harvests operates a total of approximately 55,000 square feet of an 80,000-square-foot facility in Bay City, Michigan.
The company said that the facility is currently producing greater than 10,000 pounds of whole flower per year which is sold through Grown Rogue branded flower and pre-roll product categories, including patented nitrogen sealing technology.
Grown Rogue stated that it currently has no immediate plans to finish the remaining 25,000 sq ft, with the idea that higher returns on invested capital exist elsewhere.
Canopy acquired the option for Golden Harvests on materially similar terms as held by Grown Rogue subsidiary and initial option-holder GR Michigan, LLC. Canopy was established on the same basis as GR Michigan in order to expedite regulatory approvals in Michigan.