Item 9 Labs Highlights the Benefits of the Franchise Model at Benzinga's Global Small Cap Conference
The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
At Benzinga’s Global Small Cap Conference on May 13, 2021, Item 9 Labs Corps. (OTCMKTS: INLB) spoke about its continued plans for expansion to become the first vertically integrated dispensary franchise in the industry.
From A to Z, Growing in the Arizona Market and Beyond
Item 9 Labs team is no newcomer to the cannabis space, offering a combined 200 years of experience in the industry. The company, founded in 2017 in Phoenix, Arizona, has licenses in 15 markets, 24 cannabis industry awards and has signed over 30 agreements with over 10 entrepreneurial groups.
Item 9 Labs is developing franchises in 6 states and has over 300 franchises awarded in more than 5 countries.
The company has 800,000 packaged goods sold and has seen consistent revenue growth at 20% from quarter to quarter. Item 9 products are available in Arizona and expected in Nevada during Q4 of this year.
9 Labs owns 50 acres in Arizona. With currently only two 10,000 square foot. buildings on site, the company has big plans for expansion and predicts by 2024, cannabis will be a $1.5 billion market in Arizona alone.
“We have an extremely CapEx light model. While traditional MSOs will have to expend that capital to expand, we bring in franchises that will use their own capital as well, and we actually see a benefit in expansion within the franchise model,” CEO Andrew Bowden mentioned.
Franchising is the Future
Only 1 in 10 businesses are franchised, and 50% of retail sales are sold through franchises. 9 Labs’ franchised dispensary Unity Rd. is currently the only franchise in the cannabis industry.
“Franchising is the vehicle that will keep dispensaries locally owned and operated. It is becoming much more difficult for MSOs to win licenses in these different states, and franchised businesses are 2.5 times more likely to succeed,” Bowden explained.
“Crossing state lines in the cannabis industry is almost like crossing country lines with the large differentiation in regulations,” he concluded.
About the Company
Item 9 Labs is for anyone looking to be the best version of themselves. Co-founded by five business partners bringing together a myriad of skills to produce premium cannabis products, Item 9 Labs is for those who believe quality comes first. To find out more, visit https://item9labs.com/.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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