Leading New Mexico cannabis business funnels more than $20 million into market expansion

Leading New Mexico cannabis business funnels more than $20 million into market expansion

Bethan Rose Jenkins, Cannabis News Writer/Editorial

An acclaimed cannabis producer and retailer is investing more than $20 million to expand operations in its home state of New Mexico.

Vertically integrated cannabis company Ultra Health is taking huge strides to build on its existing statewide footprint in preparation for the forthcoming adult-use market.

Ultra Health announced its expansion plans in an official news release that was published on Tuesday, June 1. Working capital cash reserves will be used to fund the cannabis company’s expansion efforts.

Included in those efforts is a stretch of land in Southern New Mexico. A 225,000 square-foot building will be constructed on the 28-acre plot of land for maintenance, production, warehousing, research and development (R&D), and office-related purposes.

In addition to this, Ultra Health will erect a distribution facility one hour south of Albuquerque. The building is expected to cover 50,000 square feet of space. 

According to the company’s news release, the establishment will be relied on “to help distribute cannabis to Southern and Southeastern New Mexico, where demand is projected to be greater than other areas of the state.”

Moreover, Ultra Health will use the funds to increase cultivation space at an outdoor site in the Tularosa region of New Mexico; an extra 150 acres of farmland will be acquired to ensure that cultivation space is sufficient to meet medical and adult-use consumer demand.

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,” said the CEO and President of Ultra Health, Duke Rodriguez.

New Mexico cannabis company Ultra Health is aiming big

Currently, almost 300 New Mexicans are hired by Ultra Health. With the launch of an adult-use market on the horizon – New Mexico became the 17th U.S. state to legalize cannabis recreational purposes when Governor Michelle Lujan Grisham signed two bills into law on Monday, April 22 – the provider is preparing to employ several hundred new employees.

Examples of some roles that will be filled by Ultra Health’s new team include cultivation, packaging, distribution, retail and various professional services. Bulking up the workforce, says Rodriguez, is essential for satisfying increased consumer interest for commercial cannabis activity.

Within the next 12 months, the cannabis company’s retail spaces will inflate by 20; the number of retail spaces already under contract exceeds 25. Before fall of next year, medical and recreational customers will be served by 50 operational dispensaries.

Ultra Health has confirmed that, by the end of 2021, its retail presence will spread across 28 of the state’s 33 counties.

About Ultra Health

Not only is Ultra Health the number one cannabis company in New Mexico but also, the vertically-integrated producer and retailer is recognized as the largest minority-owned cannabis company in the United States. 

Through its collaboration with Israeli pharmaceutical group Panaxia, customers are indulged with a broad scope of medicinal-grade products, such as controlled dose, smokeless pastilles, suppositories, oils and tablets.

Combined, Ultra Health’s operations exist across more than 15.8 million square feet of cultivation, retail and production space. To date, the company’s investments in the New Mexico cannabis market amount to $30 million. 

In 2020, Ultra Health funneled $12 million into expansion efforts. Last year’s efforts saw the construction of a 35,000 square foot state-of-the-art greenhouse on its Bernalillo campus. 

Additionally, the funds were used to purchase a commercial building of the same size in Albuquerque. Known as “HQ1,” the building will function as a designated headquarters for the respected organization.