New Mexicos First Cannabis Mega-Store

Imagine - Twenty-five registers, 10,000 Skus, the size of a PetSmart. It is open before you wake up, and closes long after you are in bed; how would you keep up, how would New Mexico respond to a Cannabis Mega-Store?

Mango Cannabis:

Mango Cannabis is a prominent medical marijuana dispensary chain in Oklahoma, known for providing a high-quality cannabis shopping experience. Founded by brothers-in-law Kevin Pattah and Mike Khemmoro, Mango Cannabis has grown significantly since its inception in 2010. Initially starting in Michigan, the founders relocated to Oklahoma after the state passed SQ788, which allowed more entrepreneurs to obtain commercial licenses for cannabis operations.

Mango Cannabis operates multiple locations across Oklahoma, including in Edmond, Enid, Lawton, Norman, Tulsa, and Oklahoma City. Each dispensary offers a wide variety of cannabis products, such as edibles, concentrates, flowers, tinctures, and topicals. The company prides itself on having knowledgeable staff who help customers find the right products for their medical needs without pushing unnecessary sales. Their products are vetted to ensure high quality and consistency, sourced from top-tier brands like Kosmik, Smokiez, and Wana.

Planet 13 Dispensaries:

Planet 13 Holdings Inc., founded in 2015, is a vertically integrated cannabis company based in Las Vegas, Nevada. It is renowned for operating the largest cannabis entertainment complex in the world, the Planet 13 SuperStore, which opened in 2018 just off the Las Vegas Strip. The SuperStore combines a large retail space with entertainment features, aiming to offer an unparalleled shopping experience.

Planet 13 has seen fluctuating financial performance, with significant revenues but also consistent net losses. For Q1 2024, Planet 13 reported revenue of $22.9 million, a decrease of 8.2% from the previous year. The company also reported a net loss of $5.9 million, down from $8.5 million in Q1 2023. Despite these losses, Planet 13 achieved an adjusted EBITDA of $0.0 million, an improvement from a $1.3 million loss in the previous year.

The company attributes its financial challenges to market pressures in Nevada and strategic investments in expansion and new market entries. However, the company's management remains optimistic about future growth, especially with potential regulatory changes such as the rescheduling of cannabis at the federal level.

What does this mean for New Mexico’s Cannabis Industry?

What happens when you take an MSO that has thrived in strict operating conditions, and put them in a state where they can operate at a quarter of the cost? Operators from other states will need to adapt to New Mexicos landscape, which can be done easily through the correct consulting services (hint hint, wink wink).

The real challenge for New Mexicans will be the financial backings of these established brands.