GSRX Industries Inc (OTCQB:GSRX) said Tuesday that its wholly-owned subsidiary Point Arena Distribution LLC has scored a provisional distribution license from the California Bureau of Cannabis Control for adult-use and medicinal cannabis products.
The rapidly growing Dorado, Puerto Rico-based medical cannabis company said the provisional license replaces the temporary license granted in April to Point Arena Distribution.
Investors sent GSRX Industries stock up 2.1% to $0.97 in premarket trading as the license allows the company to kick off operations at its new adult-use and medicinal cannabis products distribution hub in Point Arena, California.
GSRX Industries, through its subsidiaries, is in the business of acquiring and operating retail cannabis dispensaries and cannabinoid (CBD) retail stores. It is also expanding its business to include distribution, extraction and light manufacturing of cannabis and CBD products.
The newly issued Type 11 license allows Point Arena Distribution to transport cannabis goods to licensed store-front and non-store front retailers, licensed manufacturers and distributors.
Type 11 license distributors typically arrange for lab testing, quality assurance review of cannabis goods, packaging, labeling and storage.
The company said that with the license Point Arena Distribution will focus on the distribution of cannabis concentrate products related to vape cartridge filling. It will also focus on the manufacture of Dragonglass, the company’s proprietary edible THC formulation, which will be produced at the same site by GSRX’s wholly-owned subsidiary Point Arena Manufacturing LLC.
According to cannabis investment and market research firm Arcview, vaping accounted for 4.2% of the legal cannabis market in 2015 capturing $200 million in sales. In 2017, its share grew 12.9% to encompass $1.1 billion in sales.
By 2021, Arcview predicts that vape sales will surge to $5.3 billion and will account for 25% of all legal cannabis sales.
The company has signed a long-term lease for a building in Point Arena which will serve as both the Point Arena Manufacturing LLC and Point Arena Distribution LLC headquarters.
Currently, GSRX operates five cannabis dispensaries in Puerto Rico under the name Green Spirit RX, one dispensary in California under The Green Room name. It has five additional pre-qualified locations in Puerto Rico, all of which are in various phases of development and construction.
GSRX also owns and operates the e-commerce site GetPureAndNatural.com, which offers a broad range of premium hemp extract products.
Contact Uttara Choudhury at [email protected]