Strategic Growth: Grown Rogue Ventures into NJ
The TDR Three Key Takeaways:
- Market Expansion: Grown Rogue is entering the fast-growing New Jersey cannabis market, as we anticipate sales in NJ to exceed $1 billion by 2024.
- Financial Stability: The company shows strong financial performance, with consistent growth in revenue, profit, and earnings per share.
- Strategic Investment: Grown Rogue’s investment in New Jersey, including a partnership for a dispensary project, highlights a focused and strategic approach to growth.
Grown Rogue (CSE: GRIN, OTC: GRUSF) is strategically positioning itself in the fast-growing New Jersey cannabis market, following a discernible pattern of strong financial performance. The company’s establishment of Grown Rogue Retail Ventures (GRRV) in collaboration with Bengal Capital and the subsequent investment in Nile of NJ LLC underscore this strategic direction. This move is particularly timely, considering the rapid growth of the New Jersey cannabis market, which is on track to exceed $1 billion in sales in 2024, extrapolating from the $208 million reported in Q3 of the previous year and factoring in a consistent quarterly growth rate of approximately 7%.
This expansion into New Jersey aligns seamlessly with Grown Rogue’s documented financial growth. The company has successfully increased revenue each year over the past eight financial quarters, achieving a remarkable three-year compounded annual growth rate of 65%. Moreover, this growth is not just in revenue; the company’s gross profit has also seen an upward trajectory, increasing in 7 out of the last 8 financial quarters on a year-over-year basis. The solidity of Grown Rogue’s financial health is further corroborated by the consistent rise in earnings per share, which have shown an upward trend in all of the last 8 quarters when assessed year over year.
The decision to invest in the New Jersey market through GRRV is not just a testament to Grown Rogue’s growth ambitions but also a calculated move to capitalize on a high-growth market. With New Jersey’s cannabis sales showing robust growth and the state’s market expected to burgeon further, Grown Rogue’s initiative to establish a presence there is both timely and strategic. The investment, structured as a secured convertible note, signifies a prudent approach, ensuring that the company’s financial resources are judiciously allocated while still allowing for substantial growth potential.
Grown Rogue’s expansion into the New Jersey market through GRRV is a strategic step that aligns with the state’s high-growth trajectory in cannabis sales. This move not only reflects the company’s ambition to tap into new and promising markets but also demonstrates a continuity in the company’s pattern of strong financial performance and growth.
