Marijuana company purchases entire town to create a 'cannabis-friendly hospitality destination

Phoenix-based American Green, Inc., on Thursday announced its $5 million purchase of Nipton, California, a ghost town along the California-Nevada border. The small town sits on Interstate 15, the primary route between Los Angeles and Las Vegas and has a permanent population of six.

Nipton is known for its small hotel that's reminiscent of the Old West and its roots connected to the Gold Rush.

The purchase includes 80 acres that make up the town and an additional 40 acres that lay outside the city limits. The town also has a trading post, general store and RV park, all of which are included in the transaction, USA Today reported.

Currently, the town's primary source of income is from the California Lottery. Nevadans come to the general store to purchase lottery tickets, CNBC reported. American Green is hoping to change that by revitalizing the town with a 'cannabis-friendly hospitality destination.'

"We are excited to lead the charge for a true Green Rush," David Gwyther, American Green's president and CEO, said in a statement, U.S. News and World Report reported. "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."

American Green envisions a full-on paradise for Californians and Nevadans who want to partake in the use of medical marijuana. The company envisions multiple dispensaries, edibles shops and tours of marijuana farms, Business Insider reported.

American Green also envisions selling CBD-infused water and CBD baths and mineral baths. CBD, the oils from cannabis, are legal to sell in most states and removes the high that is often associated with the drug.

The company is prepared to invest an additional $2.5 million in solar panels, which would allow them to go 100 percent off-grid, USA Today reported. According to the company, the panels would be used to help offset the cost of producing and growing the drug.

Although marijuana is still illegal at the federal level, both California and Nevada have made recreational use legal. The company would be required to follow all of the Golden State's marijuana laws and regulations.

According to American Green's project manager Stephen Shearin, some police departments focus on marijuana-related crimes even though it is legal in the state. The company hopes having an entire town dedicated to marijuana will ease users' anxiety over encounters with local police.

“If you’re outside on your porch, you will not have to worry about the local constabulary swinging by to give you a ticket,” Shearin told USA Today. “It will be cannabis-friendly first, but there will be appropriate policies in place.”

Shearin says the company hopes to attract casual users to those who are interested in learning more about the growing and cultivating process.