New Mexico officials just recently began moving toward legalization of recreational cannabis, signing a bill into law in April to push momentum on adult-use, and prospective cannabis companies are already looking at situating themselves in the upcoming market. Specifically, New Mexico cannabis producer and retailer Ultra Health is spending more than $20 million to expand in anticipation of the state’s future, adult-use cannabis market.
Ultra Health says the expansion will be funded by working capital cash reserves and includes a 28-acre parcel of land with a 225,000-square-foot building in southern New Mexico and room to account for “production, warehousing, R&D, maintenance, and office space.” Along with this space, they plan to include a 50,000-square-foot distribution building located one hour south of Albuquerque intended to help distribution of cannabis from south to southeastern New Mexico, as they project demand will be greater than in other areas of the state.
Finally, they plan to expand their outdoor cultivation capacity at a site in Tularosa, New Mexico, which involves the acquisition of 150 additional acres of farmland.
Ultra Health CEO and President Duke Rodriguez said the expansion is part of an effort to meet the demands of both medical and recreational cannabis consumers in the future.
“Licensees will need to deploy substantial energy and capital to ensure the proper handling of cannabis products from seed to sale, which includes a level of physical infrastructure the state and the entire industry has yet to see or fully appreciate,” Rodriguez said.
Ultra Health has already spent some time looking at expanding alongside the changing cannabis industry, and they said they spent more than $12 million on expansion activities in 2020, which included building a new greenhouse in Brenalillo, New Mexico, and buying a new state headquarters in Albuquerque.
The company says, by the year’s end, it will have a retail presence in 28 of New Mexico’s 33 counties.