Medical Marijuana Inc. moving to Poway

Medical Marijuana Inc. is moving from its San Diego headquarters to Poway, the company said Monday, thanks to “exponential growth” in its distribution arm.

The 5-year-old publicly traded penny-stock company said the move was prompted by rapid growth in its subsidiary HempMedsPX, which distributes hemp-based products for both Medical Marijuana and another leading cannabis company, CannaVest.

Thanks in part to new laws legalizing the use of cannabis in both Washington and Colorado, HempMedsPX posted revenue of $1.4 million in the fourth quarter, up from $248,859 in the third quarter.

Its parent company reported $5 million in annual sales for 2013.

Medical Marijuana disclosed in August that it had received an inquiry from the Securities and Exchange Commission about current and former management, but Chief Operating Officer Michelle Sides said this week the inquiry has been closed.

Marijuana Business Daily editor Chris Walsh said the firm’s move is just another sign of the industry’s brisk growth, and many cannabis companies across the country have made similar moves to larger spaces.

“Medical Marijuana Inc. and HempMedsPX have been particularly aggressive as of late in trying to develop national brands, and this is likely a reflection of that strategy,” he said.

Sides said the HempMedsPX division launched several new product lines in recent months, building on its flagship chewing gum that retails for $125 per 32-piece box. It was also helped along last quarter by a new distributor, and increased efforts to educate consumers about cannabidiol-rich products.

“The cannabis industry is growing and changing at light speed,” she said in a statement about the move. “As a rapidly growing cannabis-based business in a market that is predicted to grow faster than the smartphone industry did, it is critical to productivity that personnel have a central location to collaborate from in this fast-paced environment.”

Management offices will relocate to the new multi-building campus in the Scripps Poway Parkway area this week. By June, the complex will house customer service, warehouse, distribution and marketing services, and the current headquarters in Clairemont will be converted to administration offices for Medical Marijuana’s portfolio, which continues to expand into areas like cannabis-based foods.

The company plans to actively grow HempMedsPX global sales this year, based on increased production capabilities at industrial-based hemp oil supplier PhytoSphere, another subsidiary.

Medical Marijuana currently employs 64, up from 46 at the beginning of the year, and plans to hire an additional 50 employees in the next few months.

“We are excited about our business objectives, the product lines, the progress the company continues to make in educating the public, its outreach programs, existing and impending partnerships and now being able foster economic possibilities for the City of Poway,” Sides said.

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Medical Marijuana Inc. moving to Poway