A Look at Underground Legacy-to-Legal Grower Prolific Growhouse
February 21, 2024
Prolific Growhouse entered New Jersey’s legal cannabis market as a Black-owned, social equity cultivation company rooted in the state’s underground cannabis scene.
The company’s story reflects the broader “legacy-to-legal” movement shaping New Jersey cannabis, where formerly underground operators transition into licensed businesses after legalization.
From the Legacy Market to Legal Cannabis
David Nicolas, founder and CEO of Prolific Growhouse, grew up in North Trenton as a first-generation Haitian American.
After graduating from Rowan University and working as an accountant, Nicolas eventually entered the cannabis industry through the underground market.
“I come from the legacy market,” Nicolas said. “Got this status back in 2019.”
As a social equity license holder, Nicolas explained that repeated cannabis-related arrests during prohibition shaped his path into the industry.
“Our theme was to represent the legacy side. That’s what taught me everything about the game.”
Prolific Growhouse focuses heavily on preserving legacy cannabis genetics and strains that disappeared during prohibition-era crackdowns.
“We kept a lot of good seeds and good genetics,” Nicolas said.
Building Prolific Growhouse From Scratch
Nicolas described the company’s early days as operating on “a dollar and a dream.”
Prolific Growhouse applied for a New Jersey cannabis license in December 2021 and received conditional approval during the state’s first major licensing wave in March 2022. The company later converted to a full annual license required for operations.
Financing the company proved difficult.
According to Nicolas:
Friends and family contributed personal loans
Multiple credit cards were maxed out
Traditional investors frequently undervalued the company
Several acquisition offers would have stripped ownership away from the founders
“Everyone was trying to lowball me or didn’t have faith,” Nicolas said.
Despite outside pressure, Nicolas retained approximately 98 percent ownership of the company.
“It was almost like I was gambling on myself. I’m a risk taker at the end of the day.”
Rejecting Corporate Buyouts
As Prolific Growhouse gained traction, larger multi-state operators approached the company with acquisition and partnership offers.
Nicolas said many of those deals would have sacrificed independence and ownership.
“They were going to try to capture my business. I would rather struggle,” he said.
According to Nicolas, Prolific reviewed roughly 30 potential investors before choosing one aligned with the company’s vision.
Partnership With Show-Me Organics
A major turning point came during the Benzinga Cannabis Capital Conference, where Nicolas connected with Missouri-based Show-Me Organics and Vivid Cannabis.
That meeting led to a Management Services Agreement that provided:
Operational support
Standard operating procedures (SOPs)
Strategic guidance
Financing assistance
“It’s an evil world we live in. A lot of these companies will try to take over your company and use you as the face. I stood my ground,” Nicolas said.
The partnership helped Prolific Growhouse scale while maintaining independent ownership.
Establishing Operations in Mount Holly
Prolific Growhouse’s cultivation facility is located in Mount Holly, New Jersey.
Nicolas said he personally handled much of the municipal advocacy and local approval process without relying on outside lobbyists.
“Most of these towns are expecting you to pay a lobbyist,” he noted.
The company faced multiple real estate and zoning setbacks before finally securing a workable facility location.
Despite those obstacles, Prolific Growhouse successfully launched operations and quickly gained traction in New Jersey dispensaries.
Looking Ahead
As the business continues growing, Nicolas said Prolific Growhouse now hopes to help other social equity entrepreneurs navigate the same path from underground cannabis culture into the regulated industry.
“Investors are trying to put money into my business. It’s almost like a domino effect,” Nicolas said.
He added that Prolific’s success has positioned the company to support others entering the cannabis market for the first time.