Marijuana Business Magazine October 2018

CULTIVATION BUS¬NESS STRATEG¬ES F lush with $35 million in new funding, Alternative Medical Enterprises is expanding in Florida and Arizona – and it has eyes on new markets across the nation and abroad. The vertically integrated medi- cal marijuana company is plotting its expansion in a deliberate matter. Rather than employing greenhouses, for example, AltMed has opted for indoor cultivation facilities in Florida and Arizona to better guard against mold and pests. The Sarasota, Florida-based company also is turning to science to improve the quality of its MMJ. In Florida, staffers in an onsite labora- tory oversee plant breeding with the aim of growing MMJ targeting specific medical conditions. To promote crop quality, AltMed also has identified key “premium genetics” for its plants. Since raising $35.4 million in April, AltMed has been on a building spree in the Sunshine State. The company has built out a cultivation facility and manufacturing center, in addition to a laboratory. The funding, which allowed AltMed to erase the debt on its balance sheet, also will permit the company to build out the 25 dispensaries it is authorized to operate in Florida. EXECUTIVE SUMMARY Thanks to $35 million in new funding, Alternative Medical Enterprises is expanding in Florida and Arizona – with eyes on new markets across the nation and abroad. To promote product quality and expand the business, Sarasota, Florida-based AltMed is: • Using indoor grows rather than greenhouses in Florida and Arizona to better protect its medical marijuana crop against mold and pests. • Operating an onsite laboratory to conduct quality-control testing and oversee plant breeding, with the latter targeting specific medical conditions. • Expanding to 12 more states through licensing agreements with companies that would sell its branded products. The move is intended to avoid the cost of building new facilities in each state. • Partnering with edibles maker Wana Brands to sell the Colorado company’s products at its dispensaries in Florida. Going for Growth Florida-based AltMed relies on indoor grows, ‘premium genetics’ and licensing deals to nurture, expand its brand By Margaret Jackson AltMed opted to build an indoor cultivation facility in Florida to guard against mold and pests. Photo by Rich Schineller 96 • Marijuana Business Magazine • October 2018

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