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HealthThe 21st Century Corporation

Marijuana Company Buys California Ghost Town, Eyeing a Green Rush

By
Chris Morris
Chris Morris
Former Contributing Writer
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By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
August 4, 2017, 10:51 AM ET

Nipton, CA (population 20), located on the border of California and Nevada, is a remnant of the California Gold Rush. Now one of the first publicly traded companies to specialize in the legal cannabis space is hoping it will be the centerpiece of a 21st Century Green Rush.

American Green has purchased the ghost town and plans to transform it into a marijuana tourist destination. It also plans to use it as a production hub for cannabis-based products – starting with CBD-infused water. CBD, or cannabidiol, is the non-psychoactive part of cannabis – and doesn’t give people who ingest it the “stoned” feeling the plant is known for. Research, though, has shown it to have anti-inflammatory and anti-anxiety properties.

The company says several edible and extraction companies have expressed interest in building production facilities in the 120- acre area as well.

“The Cannabis Revolution that’s going on here in the U.S., has the power to completely revitalize communities in the same way gold did during the 19th century,” said David Gwyther, chairman and president of American Green, in a statement. “This acquisition allows us to channel the myriad interests in cannabis production and consumption for an immediate positive impact to this community’s members and to cannabis consumers across the country.”

Ultimately, American Green says it hopes to offer attractions including CBD and mineral baths, cannabis-product retail outposts, artists-in-residence programs and various culinary events.

Nipton comes with its own water supply, a school building, a hotel and a general store. It went on the market last year with an asking price of $5 million, though the amount American Green paid hasn’t been announced.

The company says it plans to spend $2.5 million over the next 18 months to build out the town.

About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

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