Grown Rogue Launches Cultivation Ops in Minnesota

MEDFORD – Grown Rogue International Inc. officially began cultivation operations at its Fridley, Minnesota facility, nine months after first securing the location in December 2025. Phase I puts roughly 8,000 sq. feet of flowering canopy into production. The first indoor craft flower to come out of a purpose-built, multi-state-operator facility inside the state.

The building itself is an approximately 109,000-square-foot structure in the greater Minneapolis metropolitan area in Fridley, MN, secured through a long-term lease at a monthly base rate of $0.73 per square foot. The facility had already secured a conditional use permit for Cannabis cultivation before construction began.

Per the company’s Q2 2026 financial report, Phase I canopy is set to grow from 8,000 toward approximately 16,000 sq. feet by mid-2027, funded by internally generated cash flow. The state cap for indoor flower canopy in Minnesota sits at 30,000 sq. feet – the ceiling Grown Rogue has publicly named as its long-term expansion target.

First revenue from the facility is expected in Q1 2027, subject to regulatory approvals, construction and commissioning timelines. The timing tracks against Minnesota’s broader Cannabis calendar. Vireo Growth launched the state’s first adult-use Cannabis sales at its Green Goods dispensaries in September 2025, operating across all eight of its Minnesota locations – a retail opening that has since accelerated demand faster than in-state supply has been able to answer. Grown Rogue is no stranger to the Minnesota regulatory environment. The company previously held an advisory agreement with Vireo Growth that gave it direct familiarity with how the state operates.

Minnesota is one node in an expansion that now spans five states. Following regulatory approval in June, Grown Rogue’s Illinois partner SEA Craft began cultivation at the Dwight facility, with approximately 5,000 sq. feet of flowering canopy online and initial sales expected in Q4 2026.

The company has also recently closed its initial New York market entry through a planned acquisition of PharmaCann’s New York license and assets. Q2 2026 revenue reached $11.3 million, a 41% year-over-year increase, with the company ending the quarter at $11.5 million in cash and an upwardly revised 2026 revenue guidance range of $38 million to $41 million.

On the pricing aspect, management’s 2027 guidance projects wholesale flower pricing for “A” quality product in Minnesota above $2,500 per pound [a premium well above what the company earns in its mature Oregon and Michigan markets] pointing to a state that remains genuinely supply-constrained at this stage of adult-use rollout.

Minnesota ticks the boxes Grown Rogue has been running its playbook against for two years:

• limited licensed supply,
• a captive adult-use consumer base, and
• canopy caps that naturally protect early-mover margins.

Starting cultivation in Fridley now, with a clear path toward 30,000 sq. feet, means the company can reach that wholesale premium window before competition fills in. The real challenge comes in Q1 2027. Can it convert first harvest into a profitable run rate fast enough to justify the capital deployed? That’s the number to watch.