Ever eager to widen its footprint, ambitious hydroponics retailer GrowGeneration (GRWG 4.12%) is planting its flag in Mississippi. The company announced Tuesday it has signed a lease in Jackson, the capital of the state, for a GrowGen garden center, which will be its first location in Mississippi.
Not coincidentally, the Deep South state recently legalized the sale and consumption of medical marijuana for qualifying patients.
GrowGeneration said that the Jackson site comprises 40,000 square feet, which will be utilized for warehouse and showroom space.
Mississippi was an irresistible target for the company. In its announcement, GrowGeneration quoted its CEO Darren Lampert as saying that the state "is exactly the kind of new and emerging cannabis market GrowGen is looking to enter." He added:
With unlimited licenses to grow, allowance of out-of-state residents to apply for medical cards, and acceptance of out-of-state medical cards, Mississippi is positioned to serve the needs of its residents and those of its surrounding states, creating a 'gateway' to the South for medical cannabis.
The state's voters overwhelmingly approved medical marijuana legalization in a ballot last Election Day. The Mississippi Department of Health is obligated to hit a July 1 deadline for publishing medical marijuana rules and regulations. The target date for the launch of the market has been set for August 15.
In its announcement, GrowGeneration did not specify how much it is paying for the lease, nor did it give any cost figures for the project as a whole. Regardless, it's encouraging that the company is getting an early start in a promising new market.
Despite that, investors weren't high on GrowGeneration stock on Tuesday. It closed the day 4.3% lower against the essentially flat performance of the S&P 500 index.