GSRX Industries Inc is a diversified Dorado, Puerto Rico-based medical cannabis company
It is expanding into distribution, extraction and light manufacturing of cannabis and CBD products
It’s on a revenue roll with $3.5 million in revenue being posted in the second quarter
What the company does:
GSRX Industries Inc (OTCQB:GSRX) is a rapidly growing Dorado, Puerto Rico-based medical cannabis company which has fingers in many pies.
The company is run by retail king Leslie A Ball, also known as Les, who has a track record as the former CEO of Corral West Ranchwear and BTWW Retail.
Through its subsidiaries, GSRX acquires, develops and operates medical cannabis dispensaries and cannabinoid (CBD) retail stores.
Currently, GSRX operates five cannabis dispensaries in Puerto Rico under the Green Spirit RX brand name. It has also signed a lease in Palm Springs for its second adult-use and medicinal cannabis dispensary in California.
GSRX is now also expanding into distribution, extraction and light manufacturing of cannabis and CBD products.
The company’s majority-owned San Francisco extraction company Spirulinex LLC is behind Dragonglass, a wildly popular all-natural dried THC powder combined with organic Spirulina.
GSRX also owns and operates the GetPureAndNatural.com ecommerce site which offers premium hemp extract products.
On August 5, Chemesis International Inc (CSE:CSI) (OTCMKTS:CADMF), a Vancouver-based vertically-integrated cannabis company, agreed to acquire 41.6 million common shares and 1,000 preferred shares of GSRX, good for a 51% majority stake.
All told, Chemesis now owns 66.3% of GSRX. In return, GSRX received 18.9 million Chemesis shares. The deal is expected to close by the end of August and will help both companies realize efficiencies.
How it is doing:
GSRX Industries is on a roll with $3.5 million in revenue being posted in the second quarter ended June 2019. That’s 19% higher than the $2.866 million it made in the first quarter.
Not surprisingly, it’s been a busy spell for the company. By signing a lease in April for a second adult-use and medicinal cannabis dispensary in California, GSRX continues on its path, with a focus on the Golden State.
“We are very excited to be launching our second Green Room dispensary in Palm Springs,” said CEO Les Ball. “It will offer cannabis products, including edibles and accessories.”
The newest cannabis dispensary will be located in a building that was home to Riccio’s, an Italian restaurant and favorite Palm Springs hangout for Frank Sinatra and his swaggering Rat Pack pals Dean Martin, Sammy Davis Jr, Peter Lawford and Joey Bishop.
GSRX also has a minority interest in a company called Zen Stop which recently debuted in Los Angeles.
Zen Stop is a mobile, so-called, “meditation station” that guides customers through 10-minute meditation sessions and offers a wide selection of pharmaceutical CBD products.The CBD oils, capsules, gels and other products are supplied by the Pure and Natural brand, which is a wholly owned subsidiary of GSRX.
The company will gain traction from five additional pre-qualified locations in Puerto Rico, all of which are in various phases of construction.
This will take the company’s tally for dispensaries quickly to 11. In July, the company’s wholly owned subsidiary Point Arena Distribution LLC scored a provisional distribution license from the California Bureau of Cannabis Control for adult-use and medicinal cannabis products.
The license allows the company to kick off operations at its new adult-use and medicinal cannabis products distribution hub in Point Arena, California.
The company said that with the license Point Arena Distribution will focus on the distribution of cannabis concentrates related to vape cartridge filling.
The company hopes to capitalize on vaping’s growing share of the cannabis industry. From 2015 to 2017, vaping jumped from $200 million in sales, representing 4.2% of the cannabis market, to $1.1 billion in sales, representing nearly 13% of the market, according to data from the market research firm Arcview.
The license will also allow GSRX’s cannabis subsidiary Point Arena Manufacturing to focus on making Dragonglass. The company expects to begin full-scale operations by the end of the third quarter.
The plant in Point Loma, a small coastal city in California, is expected to be completed and properly inspected in September.
What the boss says:
“We continue to meet our operations goals, exceed revenue expectations and judiciously expand our operations,” said GSRX Industries Les Ball. “We are looking forward to continued growth.”
Contact Uttara Choudhury at [email protected]