A local company that brought first medical and then recreational marijuana to Quincy has been sold to a company its owners say is more competitive in a tough market.
Bob Lansing and Christine Wildrick sold Herbal Remedies to New York City-based Air Wellness for $30 million.
As Lansing approaches 72 years old, he said the time has come to sell. He said when the city of Quincy allowed another recreational use company, Rise, to enter the market, it became nearly impossible for his business to compete.
“Once we allowed vertically integrated companies to come in, we were cut in half,” Lansing said.
Vertical integration refers to companies that grow and sell their own marijuana without purchasing the product outside of their own supply chain. Ayr Wellness is vertically integrated. Lansing said this would allow for significant tax benefits and level the playing field in the market.
Illinois will be the eighth state in which Air Wellness operates. The company has existing operations in Massachusetts, Nevada, Pennsylvania, Ohio, Florida, New Jersey, and Arizona. The Company cultivates and manufactures branded cannabis products for distribution through a network of retail outlets and third-party stores.
According to www.newcannibisventures.com, Illinois’ overall cannabis market has reached $1.8 billion in annual sales, even though adult-use was only available 18 months ago.
“The team at Herbal Remedies has done a great job in Quincy, building a great business and earning a reputation for excellent customer service and merchandising. That’s what we look for in a partner,” said Jonathan Sandelman. said Air Wellness Chairman and CEO in a prepared statement. “We look forward to working with the Herbal team as we continue to grow our presence in the Illinois market.”
Herbal Remedies was one of the first cannabis dispensaries licensed in Illinois when medical marijuana was approved in 2013. It opened in Quincy in 2015. Recreational use became legal in 2020.
Once federal regulatory approval is received, Air Wellness will purchase 100 percent of the herbal therapy. The $30 million sale consists of $10 million in stock, $12 million in notes of sale and $8 million in cash.
Lansing said Herbal Remedies’ operations will not change until the sale is completed. He said that should happen around the end of 2021.
Publisher’s Note: New Cannabis Ventures contributed some information to this report. JRG
