Next Generation Energy Inc. (OTC: NGMC), a renewable energy company focused on providing access to clean and affordable alternatives, recently announced that its NexGen Cannabis Consulting subsidiary executed a lease agreement for a new medical marijuana dispensary in Hollywood, California. Management anticipates that the dispensary will be open to patients by June 1, 2014.
“The opening of this new dispensary will allow NGMC to implement our Dispensary Management System (DMS), which we have spent a great deal of time and effort planning,” said Darryl Reed, CEO of Next Generation Energy. “This includes a full suite of cannabis management software that provides seed to sale inventory control, point of sale and financial reporting [that] meet or exceed current California rules.”
In addition to the dispensary operation, management is exploring a warehouse location to operate its medical marijuana growing facility. The grow facility will utilize state of the art equipment and horticulture techniques to accommodate the needs of its dispensary patients, according to the company, although no timeframe was mentioned in its press release regarding the warehouse.
In March, the company also announced that it signed a letter of intent to purchase 20% of a private company operating a medical marijuana dispensary in Los Angeles, California. Management anticipated closing that transaction before April 30, 2014, which would provide shareholders with additional explore to the industry. The deal is subject to the approval of the company’s Board of Directors.
According to the Los Angeles financial office, approximately 1,400 dispensaries have sprung up in the city since April 2011. The City of Los Angeles has collected some $8.6 million in tax revenue, although not every business contributed. The figures do not account for “fly-by-night” shops that exist but haven’t registered to pay taxes or those that have closed during the three-year period.
Shares of Next Generation Energy Corp. jumped more than 15% in early trading on Friday and is trading down about 25% over the past month.
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