Midas AI Signs NDA for On-Site Inspection of US Marijuana Dispensaries

[Asia Economy Reporter Yoo Hyun-seok] Midas AI plans to expand its business to dispensaries following its efforts to secure marijuana cultivation facilities.

On the 17th, Midas AI announced that it signed a non-disclosure agreement (NDA) on the 14th (local U.S. time) to conduct due diligence for the acquisition of a recreational marijuana dispensary located in Los Angeles (LA), California, USA.

Midas AI is currently pursuing the acquisition of Melrose Facility Management (MFM), a company equipped with marijuana cultivation and extraction facilities in the U.S. After signing a memorandum of understanding (MOU) with MFM's largest shareholder, Emplant, on the 26th of last month and completing local due diligence, the company is preparing for the final contract.

Unlike medical marijuana, recreational marijuana can be purchased by any adult aged 21 or older, making the market size large. According to the Colorado state government, which was the first in the U.S. to legalize recreational marijuana, marijuana sales reached $1.74 billion (approximately 1.9 trillion KRW) last year, with recreational sales accounting for 80% of that total.

According to Emplant, the local business operator, California, the region where the business is being promoted, has a population more than seven times that of Colorado, and the market size is estimated to be about 10 to 15 trillion KRW this year.

According to the Los Angeles Marijuana Regulation Department, there are currently 156 legally operating dispensaries, of which only 101 are licensed by the California state government, including the one Midas AI is planning to acquire.

A representative from Emplant in the U.S. stated, “64% of California’s marijuana dispensaries are located in Los Angeles,” adding, “There are not many recreational marijuana sales corporations in Los Angeles, so high growth potential is expected.”

This content was produced with the assistance of AI translation services.