INLB - Item 9 Labs (INLB) - Unity Rd. Expanding into New Mexico
New Mexico Entry. Yesterday, Item 9 Labs announced entry into the New Mexico market with the signing of an agreement that will bring three dispensaries to New Mexico. Unity Rd. recently helped the entrepreneurial group secure state approval for dispensary licenses of all three shops and will be assisting the team in moving forward with development. The group currently have confirmed local city approval in Ruidoso and are awaiting approval from two additional cities for development.New Mexico Market. A medical cannabis market, the state has approved adult use recreational to begin no later than April 2022. The medical market is about $200 million, with adult use projected to add another $425 million within four years. Notably, there are only 35 vertically integrated businesses licensed in the state, operating about 125 dispensaries.Unity Rd. This agreement now gives Item 9 Labs three dispensary locations in Colorado, three in New Mexico, and 8 other states, from coast-to-coast, where Unity Rd. partners are in various stages of development. With three in-state locations, we would anticipate Item 9 Labs to seek out a cultivation operation to bring the Item 9 Labs product into New Mexico.Another Member to the Group. Item 9 Labs also added another member to its entrepreneurial group, Joe Hernandez. Hernandez has more than 25 years of experience in real estate investment and business management, and has owned several businesses in the transportation, insurance, and home services industries. With this newest addition, Item 9 Labs is showcasing their Unity Rd. franchising model is providing a great entry into the marijuana industry for potential owners, and we expect more to be involved in the model in the future.Maintaining Outperform and $4.00 PT. We are maintaining our Outperform rating and $4.00 12-month price target on INLB shares. Item 9 Labs is combining a traditional cannabis cultivation operation with an asset light franchise dispensary model to expand across the nation. We believe the combination creates a differentiated business model that offers premium products and distribution through an expanding network of dispensary franchises. Read More >>