In Good Health in Brockton is now supplying state-legalized recreational marijuana stores around the state with cannabis products. At the same time, the company is seeking to open a recreational division in Brockton and a medical marijuana dispensary in Sandwich. On top of that, a Miami-based corporation called CLS Holdings USA recently entered into an agreement to acquire In Good Health.

BROCKTON – In 2015, it was one of the first two medical marijuana dispensaries to open in Massachusetts.

Now, In Good Health is waiting in line for a state-issued recreational license, after the Brockton City Council recently finalized local licensing and zoning regulations, ending a moratorium on retail pot shops in the city.

But in the meantime, In Good Health is supplying some of the 10 existing state-legalized recreational marijuana stores around the state with its line of cannabis products, which it cultivates and manufactures at its 56,000-square-foot facility at 1200 West Chestnut St. in Brockton. In Good Health confirmed to The Enterprise that it has wholesaling arrangements with "several" dispensaries carrying In Good Health-branded products. Recently, for example, the Northeast Alternatives recreational pot shop in Fall River started selling In Good Health's marijuana-infused chocolate bars.



“We are excited for the growth opportunity for In Good Health in the city of Brockton, both in terms of expanding to offer recreational products, as well as to take advantage of wholesale opportunities, where we sell product that we create and package to other dispensaries in Massachusetts," said In Good Health President and CEO David Noble. "Just like so many other businesses that have called Brockton home over the years, from those making shoes, hardware, packaged foods and many other things, we take great pride in providing a high quality product that can be used far beyond the city limits.”

As it ramps up its wholesale division, In Good Health is also planning for the introduction of recreational marijuana sales at the Brockton facility, which will take place once the Cannabis Control Commission approves an adult use recreational license for the company.

With aCity Council-imposed moratorium out of the way, expiring at the end of February when pot shop-related ordinances were approved, In Good Health is now in line for a recreational marijuana business license, with priority applicant status before the state Cannabis Control Commission. But the Brockton-based company could not offer an estimate for how long that will take to complete.

“We are pleased to see the moratorium lifted and believe it will be a very positive development for the people of Brockton, as well as for In Good Health.," Noble said. "We must now seek a recreational license from the state Cannabis Control Commission. While as a licensed medical dispensary we have priority status, we do not know how long the licensure process will take. We will keep the public informed as to the process."

At the same time, In Good Health is working to expand its reach through a plan to establish a medical marijuana dispensary in Sandwich. The Sandwich Board of Selectmen voted 3-2 last month to approve non-opposition letter needed for In Good Health to open a medical marijuana dispensary on Route 130. Marijuana and marijuana products to be sold at the proposed Sandwich medical dispensary would be grown, processed and packaged at In Good Health's facility in Brockton, according to the company.

Another development with In Good Health is a proposed acquisition of the Brockton-based company by Cannabis Life Sciences, a Miami-based corporation also known as CLS Holdings USA, which acts as an "integrated cannabis producer and retailer" through its Oasis Cannabis subsidiaries in Nevada. CLS announced in January that it entered into an option to acquire In Good Health, in accordance with a previously executed letter of intent.

"Subject to the terms and conditions of the agreement, the parties have agreed upon all of the documents necessary to complete the acquisition," according to a Jan. 18 statement released by CLS. "The completion of the acquisition of In Good Health remains subject to a number of conditions as set out in the agreement."

This follows a $5 million loan that CLS said it provided to In Good Health last year as the Brockton company underwent an expansion of its facility on West Chestnut Street.

“We are pleased to have continued to move forward with In Good Health in a timely manner and are extremely excited to have the opportunity to enter the Massachusetts market," said Jeff Binder, chief executive officer of CLS, according to a Nov. 5 press release. "This opportunity fits into our stated objective of entering markets that have attractive characteristics and are on the cusp of implementing a robust adult use market.”

However, a spokesperson for In Good Health said that no purchase is imminent, and if it takes place, it would be later this year. If the option to acquire in Good Health is exercised, In Good Health said Noble would remain as the head of operations, and the staff of more than 50 employees would stay put as well.

"So it would not impact operations negatively, and, on the positive side, that entity would have even greater resources to invest in In Good Health so that it can scale up," said David Ball, a spokesperson for In Good Health, in an email to The Enterprise. "This is consistent with what is occurring at many other dispensaries across Massachusetts. It is a net gain for In Good Health and for Brockton, if it occurs."

As the acquisition deal remains on the table, In Good Health said it will continue to work toward opening a retail recreational sales line at its Brockton location, while increasing production in its wholesale division. Under its current host agreement as a medical marijuana dispensary, In Good Health contributes 3 percent of gross sales to the city of Brockton as an annual community impact fee.

“As In Good Health has plans to grow generally, including by adding recreational sales once approved by the state, wholesale operations will also likely grow," Noble said. "In Good Health produces high quality wholesale products that other dispensaries carry both because of their quality and the convenience of re-selling a product made by another dispensary.”