SAN DIEGO, Jan. 25, 2023 /PRNewswire/ -- Green Life Business Group Inc: The year 2022 has proven to be a difficult year for many markets and industries all over the world. One of the industries that took a toll and is considered to be in a depressed state is the California Cannabis Industry. As the year continued to progress and heads towards the closing of the year, evaluations on cannabis businesses continued to constantly shift. In previous years in the industry, cannabis business evaluations shifted on a quarterly basis. Evaluations in 2022 have progressively shifted on a monthly basis.
Although the constant drop in cannabis business evaluations and prices has been seen as discouraging for many operators in the industry it has proven to be advantageous to many larger companies and Multi-State Operators (MSO's). The plummet of prices for cannabis businesses has opened the doors for MSO's to begin moving in and acquiring distressed assets all across the state in order to expand the footprint and establish a presence in various markets all across California.
An example is Riverside County in the city of Palm Springs where a cannabis retail dispensary hit the market and continues to bring interest to strategic operators not only in the state of California but also Multi State Operators. This storefront business is located strategically in the heart of Downtown Palm Springs and is known for its state of the art buildout that had an approximate cost of $2 Million Dollars. The state of the art facility has brought the LA Style Luxury to the Desert with top level aesthetics, displays and buildout. These types of businesses are what MSO's and large operators look to target in a distressed market such as the one in 2022.
These types of acquisitions can be considered calculated and strategic as many experts in the industry have claimed that once Federal legalization takes place and Federal banks have the ability to fund these businesses and acquisitions it will open the flood gates and many operators from different industries will begin to take action and enter the cannabis industry. Experts in the industry also predict a skyrocket and spike in cannabis business evaluations and prices within the first 6 months of legalization where these businesses will have their all time highest perceived value. The current state of the market and industry continues to be a great opportunity for operators who are looking to expand their footprint into large markets. Although 2022 proved to be a difficult year, 2023 has already begun showing signs of improvement in the industry.
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SOURCE Green Life Business Group Inc