Item 9 Labs Corp. (OTC:INLB) Stock On Watchlist Following Major News

On Tuesday, the vertically integrated dispensary franchisor and cannabis firm Item 9 Labs Corp. (OTC:INLB) was in focus after it had retained the services of Sharp Capital Advisors LLC. Sharp Capital had been tasked with the job of assisting the company in selling its business. Item 9 Labs is best known for producing award-winning and high-quality cannabis products. Investors ought to note that the company’s business is made up of two main businesses, Unity Rd. and Item 9 Labs.

The company’s operations consist of a supremely systematic operation related to cultivation housed in a 20,000-square-foot plant located on a 49-acre parcel of land in Coolidge, Arizona. The production plant in question is known for the production of award-winning cannabis flowers, which are used for the production of branded products. These branded products generated sales to the tune of $20 million in the trailing 12-month period.

The company’s Unity Rd. business unit is the first cannabis dispenser franchisor to operate at a national level. In fact, it is also a member of the International Franchise Association (IFA). Currently, it boasts a total of three franchises located in Colorado, New Jersey, and South Dakota. However, there are many other franchise locations in the pipeline. The company also noted in its news release that Unity Rd.’s business model was capital-efficient and asset-light, which allowed it to consistently distribute quality brands across a range of states.

On May 23, the company announced that it had completed a major restructuring in order to resize its operations as well as its cost structure. Item 9 Labs Corp. also noted that it was working on the national expansion of its brand simultaneously so as to return to profitability. The company revealed that it had caused a considerable cost reduction in order to build on its positive adjusted EBITDA of $400000 in the first fiscal quarter of 2023.