The cannabis market is expanding rapidly and with it, creating a lot demand from both users of medical and recreational cannabis. In response to the dynamic, MJ Holdings Inc (OTCMKTS:MJNE) has decided to diversify its business strategy in a move that is aimed at taking advantage of the potential of the consumer space in the cannabis industry. The Florida-based company has initially been solely involved in acquiring real estate for licensed marijuana operators.
In a February 25th press release, the firm announced the launch of Kingston® MJuice®, which offers flavor profiles intended to enhance the taste experience of medical marijuana. The product enabled the company to make a beachhead for its entry into the consumer space.
In another press release two years later, the company announced that it had entered into a “definitive agreement to acquire Red Earth LLC” in a bid to create a foothold in the Las Vegas cannabis market. According to the release, Red Earth holds a provisional license to grow cannabis in Las Vegas, Nevada.
Per the release, Paris Balaouras assumed the role of the Chief Executive Officers of the newly constituted company. The statement notes that the new CEO brings a lot of expertise that will be crucial in driving the strategy of MJ Holdings. He was the Manager of Red Earth and a seasoned entrepreneur.
The company was keen to join the Las Vegas market after the region legalized the production and sale of the “leaf”. The release notes that Las Vegas is a very prominent destination for agritourists, with over 52 million visitors annually. For this reason, the region has potential to grow the business to levels that will make the company a dominant brand in the market.
The company understands that the present business environment is very competitive and that for the business to thrive, a company must find ways to diversify. With the introduction of the consumer products, the company seeks to tap into the revenue potentials of the market. On the other hand, the acquisition of red Earth provides an excellent opportunity for the company to be able to maintain a steady supply of quality products.