As the leaders of High Desert Flower, a vertically integrated cannabis company based in Oregon, we have built a cannabis cultivation operation and merged with an extraction company. So, when we made the decision in 2019 to venture into retail and buy a dispensary, we asked ourselves, “How hard can this really be?” You don’t have to worry about introducing contaminants into a sensitive and tightly controlled cultivation environment, nor do you have to busy yourself with meeting the safety standards required of running an extraction lab.
The answer? Hard, but a different type of hard.
We closed our first dispensary purchase in June 2021, completing our vertical trifecta. Our goal is to eventually buy or open multiple retail locations, but we wanted our first dispensary to be our “starter dispensary,” so that if we flubbed integrating the store into our company’s operations, the damage would not be too large. Therefore, we targeted a purchase where the price of the business and license was heavily weighted to the value of the license. Our logic: assuming a continuing market demand for retail licenses at or above the current market price, the guaranteed value of any retail cannabis business is the value