Pot-Focused Hydroponics ‘Superstore’ Plans Rapid Expansion, IPO

A California hydroponics company is hoping to become one of the first major nationwide chains in the medical marijuana industry, announcing plans to open dozens of stores in several states.

Oakland-based weGrow said it has sold out all of its franchise rights for stores in Arizona, Delaware, New Mexico and Washington D.C. It’s also poised to enter other states that have legalized medical marijuana, including Colorado, New Jersey and Oregon.

The company sells everything from grow lights and pest control products to drying racks and even mobile hydroponic grow trailers. WeGrow also offers training sessions, demonstrations and on-site medical marijuana evaluations. Think of it as the Wal-Mart of weed (the company’s words, not mine), a one-stop shop for everything your dispensary needs to grow medical pot.

The company, which currently has two location in California and recently opened a 21,000-square-foot store in Phoenix, also is hoping to conduct an initial public offering in the near future.

It’s worth keeping a close eye on weGrow for two main reasons::

– By developing a brand and establishing a franchise model, weGrow could pave the way for other businesses in the medical marijuana industry – perhaps one day dispensaries – to do the same. To date, even the largest medical marijuana centers and ancillary businesses  have just a handful of stores in a single state. Expect that to change as companies like weGrow blaze new trails.

– If successful,  the company could bring some credibility and legitimacy to the medical marijuana business – which will help attract more investment dollars to the industry.

I also think this will benefit dispensary owners by giving them all the benefits that come along with chain stores. This includes consistency, greater product selection and a known quantity when buying hydroponics supplies.

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