📉 U.S. Cannabis Trading Volume Levels after Q1 Spike

Curaleaf Voting Results from Annual and Special Meeting of Shareholders. Columbia Care starts flower sales in VA. Wonderbrett partners with Cloud Cannabis in MI.

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❓ Slow news week so thought I’d take the chance to test out sending out on just M/W/F but wanted to get thoughts on preferences. Just a difference in frequency, but same stories/news will get captured. Please vote below.


🌿Industry

US cannabis trading volume levels after first-quarter spike.

Average daily trading volumes for U.S. cannabis operators appear to be bottoming out at about $80 million per day, a level not seen since October 2020. Trading volumes have declined 75% since peaking in February. Despite the drop, the volume remains nearly triple the levels seen in Q3 2019 through the Q3 2020 ($36 million per day average). The increased value is justified by growth in market capitalization. Average daily trading volumes of U.S. cannabis stocks experienced a dramatic rise between October 2020 and February 2021 on legislative optimism and the meme-ification of cannabis stocks, peaking at an average of about $300 million per day. The chart above shows the 30-day average daily trading volume of U.S. cannabis stocks (including both OTC and Canadian tickers) in blue on the left axis and a market cap-weighted price index in green of the U.S. operators pegging Jan. 1, 2019, at 100 on the right axis.

Fresno, CA announced preliminary approvals for cannabis retail businesses for 21 businesses. The City of Fresno announced the preliminary approvals for cannabis retail businesses in the city. The Office of Cannabis Oversight released a document listing 21 cannabis permits given preliminary approval for retail store fronts. The announcement comes after the city unveiled the first three retail permits granted under the social equity process. Three businesses for each district (7) received preliminary awards this week. Notable companies include — The Artist Tree, Viola, Haven, Authentic (Stiiizy), Embarc, and Sweet Flower.

Plan to open up Cannabis sales in downtown Chicago by easing cannabis zoning rules sent to full city council. The Chicago City Council’s Zoning Committee on Wednesday approved Mayor Lori Lightfoot’s plan to ease the city’s onerous zoning requirements for cannabis businesses and allow retail sales in much of the downtown area. The ordinance aims to streamline the zoning process to attract a flood of new cannabis license winners, most that earned a leg up in the application process by qualifying as social equity candidates, a designation created by the state to bolster diversity in the white-dominated weed industry. An outline of the proposal concedes that cannabis firms largely bypassed Chicago during the last licensing round, costing the city as much as $13.5 million in lost revenues. Of the 110 operational dispensaries in Illinois, just 18 have opened in the state’s biggest city. In addition to opening up far more properties for cannabis operators to call home, the proposal would eliminate the city’s seven cannabis zones and their underlying license caps and do away with a related zoning lottery. Of the 185 licenses that remain on hold, 119 are designated in a region that includes Chicago, offering the city an opportunity to become a “pot paradise” after all.

Lawyer from upstate NY given green light to join Cannabis Control Board. A lawyer from Buffalo whose expertise includes advising clients on the marijuana industry was named to the state’s new Cannabis Control Board on Wednesday. Adam Perry was appointed by Assembly Speaker Carl Heastie (D-The Bronx), who got to choose one of the board’s five members. Neither Perry nor the other board members need to be confirmed by the committee. Perry is a partner at the Hodgson Russ law firm, where his practice includes “Cannabis & Hemp” and “Canada-US Cross-Border” matters, according to the firm’s website.

Akerna Flash Report: Friday of Labor Day weekend brought in $90.1M in national retail cannabis sales, becoming the second-largest sales day of 2021. LDW fell only behind 420. The Friday before the 4th of July, July 2, was previously the second-highest sales day for the year.

Marysville, CA City Council discusses permitting third dispensary. Marysville Mayor Chris Branscum was met with opposition from members of the public and from city council members on Tuesday during a discussion about the possibility of adding a third cannabis dispensary and cannabis production facility in the city. Branscum requested a cannabis discussion be on the agenda and he presented the item to the council. He said Marysville has benefited from having recreational dispensaries operating in the city. Revenue for the city from the cannabis industry approaches $1 million a year, according to Branscum. The city currently has two cannabis dispensaries that allow for both medical and adult use.


💵Deals

Wonderbrett Brings Its Genetics To Michigan through Cloud Cannabis. Founded in 2020, Cloud Cannabis Co. is among the fastest-growing cannabis retailers in Michigan, where it has four operating stores, 19 cannabis retail licenses and 200 employees. The company is best known for its elevated approach to cannabis education in a retail setting. The partnership being announced is not a traditional, out-of-state licensing deal, but rather a true cultivation partnership, whereby Wonderbrett will cultivate its rare genetics for Michigan consumers, while also supporting Cloud Cannabis with the development of premium flower branded products and overseeing all aspects that pertain to cultivation at Cloud Cannabis Co.'s recently acquired, 70,000 square foot state-of-the-art grow facility.

The Valens Company — Enters White Label Partnership with Fire & Flower, Leading Canadian Cannabis Retailer. Under the terms of the agreement, Valens will manufacture Fire & Flower's Revity CBD oil for distribution in Ontario, Manitoba, and Saskatchewan with the potential to expand into additional provincial and territorial markets where permitted and agreed. Revity CBD oil will be formulated with Valens' proprietary processing methods to remove impurities and bring distinct cannabinoids to the forefront of the consumer experience. Each product includes an integrated dispenser to ensure consistency with each use. The product focus of the Revity CBD line has been derived from key consumer insights in product formulation, target consumer segments, price and format in the Hifyre™ Digital Retail and Analytics Platform.


📄Company Updates

Curaleaf — Voting Results of its Annual and Special Meeting of Shareholders. The number of directors on the board of directors of the Company for the ensuing year was fixed at nine (9) by the shareholders and the following nominees for election as directors of the Company were elected by a majority of votes cast by the shareholders virtually present or represented by proxy at the Meeting:

  • Boris Jordan;

  • Joseph Lusardi;

  • Dr. Jaswinder Grover;

  • Karl Johansson;

  • Peter Derby; and

  • Mitchell Kahn

Shareholders also approved the amendment to the articles of the Company in order to extend the automatic termination of the dual-class structure of the Company and to maintain such dual-class structure of the Company until the earlier to occur of (i) the transfer or disposition of shares by Boris Jordan, the Executive Chairman of the Company, to one or more third parties (which are not Permitted Holders (i.e. members of his immediate family and entities controlled by Mr. Jordan and members of his immediate family)); (ii) Jordan or his Permitted Holders no longer beneficially owning, directly or indirectly and in the aggregate, at least 5% of the issued and outstanding shares of the Company; and (iii) the first business day following the first annual meeting of shareholders of the Company following the subordinate voting shares of the Company being listed and posted for trading on a United States national securities exchange such as The Nasdaq or The New York Stock Exchange.

Columbia Care — Start of Whole Flower Cannabis Sales in Virginia. Green Leaf Medical (gLeaf), acquired by Columbia Care in June 2021, announced the start of whole flower sales in Virginia. These new products will be available at Columbia Care’s Portsmouth dispensary and gLeaf’s Richmond dispensary under the Seed & Strain and gLeaf brands, marking some of the first sales in the Commonwealth under the new whole flower program. Flower will also be available via home delivery and third party retailers throughout the state. Until recently, smokable flower sales were not permitted in Virginia. In advance of the anticipated change in regulation, which was announced in February 2021, Columbia Care and gLeaf accelerated cultivation in their Portsmouth and Manchester facilities, which together total more than 145,000 square feet of cultivation and manufacturing capacity. Columbia Care and gLeaf are actively developing ten additional retail locations in Virginia, for a total of 12 dispensaries. The Company expects to open three incremental dispensaries in Virginia by year-end.

Red White & Bloom — Florida Facility Ready for Production of Edibles. The production facility was built within a 4,800 square foot standalone structure at RWB Florida’s Sanderson location. The addition was built to accommodate the fast-growing demand for edibles in the market. RWB has developed a branded capsule and rosin line along with a proprietary line of chocolates that will be available to medical patients in Q4 of 2021. “According to BDSA, the market for ingestible products has increased from $5.3M a month to over $13M a month in the first six months of 2021. With growth of over 145 percent in just the first six months of this year, we are pleased to be entering this fast growing market now.”Brad Rogers, CEO of RWB

General Cannabis — Closing of the Acquisition of TREES Englewood and Corporate Name Change to “TREES”; Board of Director Added. The Company expects to close the acquisition of the two previously announced dispensaries in Portland, Oregon in the near future, and the opening of the two new dispensaries in Denver and Portland. TREES founder & CEO, Tim Brown, officially joined the Board of Directors and the Nominating Committee of the Board.

Perfect Union — Expands California Cannabis Retail Footprint; Opens New Dispensary in Napa. Perfect Union launched a new retail storefront in Napa (1760 Industrial Way, Suite A, Napa, 94558), marking its eleventh branded dispensary in California. The new medical 2,000 square foot retail space is one-quarter of a mile from the Bel Aire Shopping Plaza and minutes from some of California’s most award-winning vineyards.


🏬Retail

Jushi — Opens 22nd BEYOND / HELLO™ Retail Location Nationwide, 15th Store in Pennsylvania and 7th Location in the Greater Delaware Valley through its Subsidiary, Franklin Bioscience. BEYOND / HELLO™ Colwyn is conveniently located at 522 Ellis Avenue, along the eastern border of Delaware County near Southeast Philadelphia, Darby, Eastwick, Collingdale, Elmwood Park, as well as not too far from the Darby Station SEPTA line.

MedMen — Orlando, FL Dispensary. MedMen Orlando is 5,500 square feet and will serve as a key focal point of the Company’s operations in the vibrant and burgeoning Central Florida area. This latest opening brings MedMen’s national store count to 27, including 6 locations in Florida.


🌱Product

Leafly — Expanded Advertising Tools for Cannabis Brands. The expanded Leafly brand subscription includes a customizable brand profile page and offers the following new and expanded features to help brands make the most from their Leafly presence, with all features available on September 30, 2021:

  • New, robust reporting with detailed insights on top-performing products and stores so brands can make informed decisions about sales and advertising investments;

  • Increased visual customization of brand profile pages so that brands can now highlight three featured products, include additional video and hero imagery, and add product spotlight sections;

  • Increased catalog control of products as displayed within dispensary menus, including the ability to add in comprehensive product details like cannabinoid data and link to the 5,000+ strains in the Leafly database; and

  • New built-in amplification for top-of-page carousel placements within dispensary pages.

Betty's Eddies® Brand — Launches Singles and Brings Back Multi-Packs. MariMed is launching new SKUs for its popular infused fruit chews. Offering the award-winning Betty’s Eddies brand in a single-serve package will provide a low-cost, convenient option to drive trial of the brand among new customers, as well as for impulse purchases at point-of-sale. All of Betty’s Eddies fruit chews will be offered in the single-serve format, including the sleep-enhancing Betty’s Bedtime, immunity-boosting Elderbetty, libido-inducing Smashin’ Passion.


🎙️Interviews

Ayr Wellness CEO Jon Sandelman. Give this a listen (and a like/RT if you’re on twitter) if you haven’t yet —

Planet 13 Is Taking Its Las Vegas Cannabis Superstore Concept Coast to Coast

Waiting For The Top Down In Cannabis — Tim Seymour

Founding an Edible Brand and Getting Acquired — Ryan Crandall, MariMed

Playing in the CFL planted the seeds for Chris Ball’s cannabis career — GrowthOp

Indiva — New Cannabis Ventures


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