Mississippi’s medical marijuana program is currently in the planning stages, but cannabis businesses are already emerging throughout the state. “I want to be the Chick-fil-A of cannabis,” stated Steve Merritt from Southern Sky Brands, a company dedicated to building cannabis cultivation facilities. Merritt has experience constructing growing facilities nationwide and has relocated to Mississippi to establish one in Madison County.
“We are beginning to realize this plant interacts with various receptors throughout our body. It is truly remarkable medicine,” Merritt added. The foundation for Southern Sky Brands is being laid near the Nissan plant in Canton, where the facility will be built from the ground up. Justin Mahfouz, a co-founder, emphasized the local commitment of their team.
Local Opportunity in Cannabis
“The core group of our team is from Mississippi, and we see this as an opportunity to provide homegrown products for local patients,” Mahfouz remarked. This past year has been challenging for Mahfouz and his partners, who initially aimed to develop medical marijuana facilities after voters approved the initiative in November 2020. However, the Mississippi Supreme Court invalidated the initiative in May 2021 due to issues with the state constitution’s ballot initiative process, leaving many in a state of uncertainty.
“We’ve been sitting on the sidelines, and it has become a significant business risk,” Mahfouz explained. Recently, Governor Tate Reeves signed the medical marijuana law into effect, allowing work on Southern Sky to resume, though inflation has impacted project costs significantly.
Impact of Inflation on Development
“We have seen a substantial increase in building material costs. What once cost a million dollars has now risen to $4 million, with long wait times for supplies,” Mahfouz noted. “While waiting, we’ve dealt with a $15 million increase in the costs associated with constructing our facility, without any design changes required.” Mahfouz is hopeful that construction will progress in the coming months, resembling a facility with eight indoor growing rooms that Merritt recently visited.
“Our method of indoor marijuana cultivation involves growing and harvesting a new crop every week, followed by curing and drying,” Merritt explained. The distribution facility is expected to employ up to 125 individuals, with a total of 200 company-wide. Various positions will be available, ranging from skilled roles to entry-level positions.
Preparing for Workforce Development
Merritt expressed plans to launch operations in November and acknowledged the financial investment required for employee training. “There are numerous skills involved, and available talent is scarce as many have already been hired by other states,” he observed.
In an effort to foster understanding and acceptance of medical marijuana, Merritt is eager to host tours of the facility. “My goal isn’t merely to sell cannabis; I want to demonstrate how this medicine can profoundly affect lives,” he concluded. The company also intends to establish five dispensaries throughout Mississippi while offering their products at other dispensaries.
