🧾MSOs Revenue mostly flat outside of GTI and Trulieve
Ayr Wellness to exit IL. MariMed closes DE acquisition. Glass House Brands $50M Senior Secured Loan. Organigram closes third tranche of BAT Investment. Cresco Labs signs MSA for KY Cultivation.
🌿 Industry
US cannabis companies got leaner in 2024. The only thing investors care about is cannabis reform. The question on everyone’s mind remains: will it be legalized or treated differently by the government and banks? — Sherwood
Dan Ahrens, who manages the ETF MSOS 0.00%↑ said investors are less reactive to how profitable US cannabis companies are now and more interested in how close they are to getting federal cannabis reform
“It doesn’t have a whole lot to do with fundamentals. It has everything to do with the status of federal reform” Ahrens said
San Diego considers raising cannabis business tax — and possibly losing money. The city is considering raising a citywide tax on dispensaries from 8% to 10%. — kpbs
Assuming taxable gross receipts remain consistent, the proposed tax rate increase would generate ~$3.9M in additional annual tax revenue
The city's tax rate was initially 5%, then automatically increased to 8% in 2019
"Why would I pay a 10% tax when I could now go to my La Mesa dispensary, and they only impose a 4% tax?" Kimberly Simms, an attorney who represents cannabis businesses said. "We're not being competitive with the cities around us, and I think it's short-sighted"
According to a statewide database of cannabis licenses, La Mesa has fewer cannabis retailers than San Diego — but more than 11 times as many retailers per capita compared to its more populous neighbor
Alabama Medical Cannabis Commission: Court ruling may finally end licensing delays. A company that sued the AMCC after it was denied a license also called the ruling a victory, saying it would ensure a process that identifies the qualified applicants. — AL.com
The court ruling ordered the Montgomery County Circuit Court to vacate a temporary restraining order (TRO) that prohibited the AMCC from proceeding with the disputed license awards
Will Somerville, attorney for Alabama Always, said the ruling was a victory for the company after a year and a half of litigation because he said it ensures that the investigative hearings must be done under the Alabama Administrative Procedure Act, which he said will require companies awarded licenses to prove they are qualified and allow Alabama Always to demonstrate its qualifications
60% of Cannabis Consumed in California Comes From Unregulated Market as Licensed Production Grows. The state issued a market outlook report that projects stabilizing prices, an industry value uptick, and growth in the licensed market. — CBT
Licensed operators produced ~1.4M pounds of cannabis (dry-flower equivalent) that was consumed in 2024, representing ~40% of the estimated 3.8M pounds Californians consumed in total, according to the report
Overall, ERA Economics estimates that an average of 11.4M pounds of unlicensed cannabis is produced in California each year, meaning ~9M pounds is trafficked out of state. However, ERA’s confidence interval for the illicit market is 7–16.3M pounds, meaning the estimate isn’t precise
By ERA’s estimate, the total wholesale value of unlicensed cannabis production is around $11.9B annually, with $2B being consumed by Californians and $9.9B being exported. The retail value is much larger
The Cannabis Awards at the California State Fair Returns for 2025 with New Award Categories. The Awards will introduce bronze medals for every category will increase the number of award winners overall, expanding recognition to more brands. Additionally, new awards for blunts, hash, and chocolates have been added to reflect the product diversity of California’s cannabis market.
Florida MMJ patient count still increasing, but growth has slowed down substantially from just a few years ago. ~902,000 patients represent 4% of the state’s population. — New Cannabis Ventures
Texas Gov. Greg Abbott declined to endorse Lt. Gov. Dan Patrick’s THC ban. Abbot said he needs more information about how lawmakers propose a prohibition that would criminalize a fast-growing cannabis market in Texas. — Houston Chronicle
Kentucky Senate Passes Hemp Drinks Bill With Amendment Regulating, Instead Of Banning, Them. The amendment removed the temporary sales ban and would instead impose a cap of 5mg THC on cannabis-derived drinks. — Marijuana Moment
California legal cannabis production increased by 11.8% to 1.4M pounds in 2024. However, overall cannabis consumption in California is 3.8M pounds. — MJBizDaily
Greek cannabis operator Curity Pharma has been awarded a government operating license for a cultivation operation in the country. The company has invested ~$21M in the facility, which spans ~220K square feet. — MJBizDaily
💵 Deals
Ayr Wellness has signed an LOI to sell Four dispensaries in Illinois. The MSO will continue to consolidate its facilities in its core markets. Ayr began the consolidation process in 2024 by closing a manufacturing facility in Nevada and subleasing its original medical marijuana cultivation and manufacturing facility in Massachusetts. The company plans to close a second cultivation facility later this month and consolidate its grow operations into a single facility. Meanwhile, Ayr will more than double its flower production when the company’s indoor cultivation facility in Ocala, Florida, is fully operational. Florida dispensaries account for ~70% of its retail network.
MariMed closes $11M acquisition of First State Compassion Center (DE). The approval of MariMed to become the owner of FSCC was facilitated by the state permitting FSCC to transition from a not-for-profit to a for-profit business. The timing is ideal for MariMed, as Delaware is expected to commence adult-use cannabis sales later this year. A recent report by the state estimated that Delaware’s legal cannabis market could grow to $215M in annual sales.
The Cannabist Co. achieves 70% Support for Agreement to Extend Senior Secured Notes Maturity Date. Under the terms of the transaction, the holders of the 2025 Notes and the 2026 Notes will exchange their Senior Notes for an equal principal amount of 9.25% senior secured notes due December 31, 2028 (subject to two six-month extension options available to the Company upon payment of a 0.50% fee, payable in cash) and the holders of the 2027 Notes will be given the right to elect to receive either (i) an equal principal amount of New Senior Notes or (ii) an equal principal amount of newly issued 9.0% convertible notes, which will have the same conversion price as the existing 2027 Notes but will have the same extended maturity date as the New Senior Notes.
Glass House Brands $50M Senior Secured Loan. Maturing on January 31st, 2030, the new senior debt facility replaces the previous senior secured loan that was set to mature in late November 2026, pushing out the final balloon payment by an additional 3 years. The interest rate will be fixed at 8.58% for the term of the loan, significantly lower than the rate paid for the previous loan. After paying legal and loan fees for the new loan and $41.0M for the balance of the previous loan plus fees, the company will have a net cash inflow of $8.1M. With interest only payments until the 3rd year, the loan will preserve $13.1M that would have otherwise been required for monthly principal payments in 2025 and 2026.
Organigram Closes Third Tranche of BAT Private Placement Investment. The Company closed the third and last of three tranches of the previously announced C$124.6M follow-on strategic equity investment by BAT. Pursuant to the Third Tranche closing, the Investor acquired 7,562,447 common shares and 5,330,728 Class A preferred shares of the Company at a price of C$3.2203 per Share for gross proceeds of ~$29M. Organigram has ~C$57.8M to further invest from its Jupiter strategic investment pool after completing investments of C$21M in Sanity Group and C$2.7M in Open Book Extracts. Immediately following the closing of the Third Tranche, the Investor beneficially owned 40,134,389 Common Shares and 13,794,163 Preferred Shares, representing 30% of the issued and outstanding Common Shares and 100% of the Preferred Shares, in each case on a non-diluted basis.
Canopy Growth Establishes New US$200M ATM Program. Canopy Growth intends to use the net proceeds from the ATM Program, if any, for investments in businesses and/or to fund any potential future acquisitions and for working capital and general corporate purposes, which may include the repayment of indebtedness, including the optional $100M prepayment under the Company's existing credit agreement, which if completed, will automatically extend the maturity date of the Company's term loan to September 18, 2027.
📄 Company Updates / Earnings
GTI Q4 and FY2024 Results. Q4 Revenue of $294M, up 6% YoY, net income of $13M, Adjusted EBITDA of $98M (33% margin). 2024 Revenue of $1.1B, up 8% YoY, net income of $73M, Adjusted EBITDA of $371M (33% margin). Cash of $172M, debt of $255.0M.
Trulieve Q4 and FY2024 Results. Revenue of $301M, up 5% YoY, 62% GM, compared to 54% GM during Q4 2023, CFO of $271M and FCF of $150M, Adjusted net income of $3M. FY2024 Revenue of $1.2B, up 5% YoY, 60% GM, adjusted EBITDA of $420M. Cash of $238.8M, notes payable of $115.3M, private placement notes of $364.8M.
Curaleaf Q4 and FY2024 Results. Q4 Revenue of $331.1M, down (4%) YoY, Gross profit of $157.4M (48% GM), Net loss of ($71.8M), Adjusted EBITDA of $75.8M. 2024 Revenue of $1.34B, flat YoY, Gross profit of $639.2M (48% GM), ($216.2M) Net Loss, Adjusted EBITDA of $300.8M. Cash of $107.2M, debt of $568.6M.
Verano Q4 and FY2024 Results. Q4 Revenues of $218M, down (8%) YoY, up 1% QoQ. Adjusted EBITDA of $63M (29% margin), Net loss of $(273M). FY2024 Revenues of $879M, Gross profit of $444M (51% GM), Adjusted EBITDA of $264M (30% margin), Net loss of $(342M). Cash of $88M, debt of $414M.
AYR Wellness Q4 and FY2024 Results. Q4 Revenue of $114.3M, down (0.7%) YoY, $26.1M Adjusted EBITDA (22.9% margin). 2024 Revenue of $463.6M, unchanged YoY, $100.0M Adjusted EBITDA (21.6% margin). Cash of $35.5M, $410.5M of debt.
TerrAscend Q4 and FY2024 Results. Net Revenue was $74.4M, up 0.3% QoQ, 50.2% GM, GAAP Net loss was ($30.2M), Adjusted EBITDA was $15.1M. 2024 Net Revenue was $306.7M, 48.9% GM, Net Loss was ($72.7M), Adjusted EBITDA from continuing operations was $60.7M. Cash of $27.0M.
Jushi Q4 and FY2024 Results. Q4 revenue of $65.9M, Gross profit of $25.4M (38.6% GM), Net loss of ($12.5M), Adjusted EBITDA of $8.0M (12.2% margin). FY2024 Revenue of $257.5M, Gross profit of $118.3M (45.9% GM), Net loss of ($48.8M), Adjusted EBITDA of $46.2M (17.9% margin). Cash of $21.3M, debt of $201.5M.
MariMed Q4 and FY2024 Results. Q4 Revenue of $39.0M, 33% GM, ($.8.2M) Net Loss, $5.9M Adjusted EBITDA (15% margin). 2024 Revenue of $158.0M, 40% GM, ($12.1M) Net Loss, $19.6M Adjusted EBITDA. Cash of $7.3M.
Vireo Q4 and FY2024 Results. Q4 revenue of $25.0M (50.6% GM) increased 3.5% YoY, $6.6M Adjusted EBITDA (26.4% margin). FY24 revenue of $99.4M (51.1% GM) increased 15.4% YoY excluding discontinued operations, $25.1M Adjusted EBITDA (25.3% margin). Cash $91.6M, debt of $72.2M (includes $9.8M convertible debt). Bengal Capital revealed it has liquidated its position in Vireo, citing potential execution risk as one reason. Check out the full FY2024 letter it shared below —
NewLake Capital Q4 & FY2024 Results. Q4 Revenue totaled $12.5M, 2024 Revenue totaled $50.1M, up 6.0% YoY. Total liquidity of $102.6M, consisting of cash and cash equivalents and availability under the Company’s revolving credit facility.
Planet 13 recovered $2.1M of funds which were held at BridgeBank, a division of Western Alliance Bank, bringing the total recovery of funds held at WAB to $5.5M. Additionally, the Company, through a wholly-owned subsidiary, will also obtain real estate valued at ~$5.0M based on recent comparable sales, which it intends to sell. In total the Company has recovered ~$10.5M, including the expected value from the sale of the Real Property. This settlement does not conclude the Company’s lawsuit against El Capitan Advisors and its founder and CEO, Andrew Nash, in which it is seeking ~$10.3M, which is based on $15.3M less the expected net proceeds Planet 13 receives from the sale of the Real Property, in additional compensatory damages and other relief.
Jane Technologies #246 on Forbes 2025 America’s Best Startup Employers.
🏬 Retail / Cultivation
Cresco Labs signs MSA with Tier 3 Cultivation License in Kentucky. The agreement entitles Cresco Labs to manage and operate a cultivation facility with up to 25,000 sq ft of canopy, marking a significant milestone for the Company and establishing Cresco Labs as one of only two operators of Kentucky’s coveted Tier 3 cultivation licenses. Kentucky’s medical cannabis program, launched on January 1, 2025, represents a significant milestone for the state. The program includes a maximum of 115,000 square feet of approved canopy space and 48 retail licenses.
GTI opens 12th RISE Dispensary in Nevada. The company operates one production facility in Carson City and two in Las Vegas. In addition to the new RISE Dispensary Henderson on Boulder, the Company operates eleven other locations in Nevada, including stores in Carson City, Carson City on US HWY 50, Henderson, Las Vegas on Craig Road, Las Vegas on Nellis, Las Vegas on South Durango, Las Vegas on South Rainbow, Las Vegas on West Tropicana, Reno, Spanish Springs, and Cookies on the Strip Dispensary Las Vegas.
Ascend Wellness Reopens Dispensary in Detroit With ‘Deli-Style’ Experience. This marks Ascend's 38th dispensary within its seven-state footprint, and the Company's eighth dispensary in Michigan with additional locations in Ann Arbor, Battle Creek, Grand Rapids, East Lansing, and Morenci.
Story Cannabis opens 4th Ohio dispensary in Cleveland.
Terrabis opens 4th Illinois dispensary in Woodstock. The company also has four stores in MIssouri.
🌱 Product
Grön Launches 1000mg BIG BAR Chocolates. The BIG BAR is a 1000mg THC Fair Trade Certified chocolate bar designed for experienced cannabis consumers and medical patients. The product is made exclusively for the Missouri adult-use and Arizona medical markets.
Raw Garden Introduces Sprout™ Vape. Raw Garden has developed a Terpene-Safe solution for the all-new Sprout™ all-in-one cannabis vape. Sprout™ is the latest addition to Raw Garden’s lineup of clean, single-source cannabis products, which includes concentrates, infused pre-rolls, and vapes.
binske x Pleasantrees to enter Michigan. The company’s products are also available in California, Colorado, Florida, Illinois, Massachusetts, Nevada, New Jersey, New York, and Washington. Its initial product rollout includes a curated selection of gummies, vapes, and cannabis concentrates produced using a solventless extraction process. Many of the strains are rare in Michigan, including Octane Mint Sherbert, Chrome Berry, Lemonberry Parfait, and Simple Syrup.
Snoop Dogg launches Iconic Tonics with Harmony Craft Beverages. In addition to Snoop Dogg's hemp-derived THC-infused Do It Fluid and Doggy Spritz brands, the portfolio features Lifeblood by Love Yer Brain, Klaus, Malus, Herbaceé and Lift.
NoDa Brewing Co. is hopping on the cannabis trend with a line of hemp-derived THC seltzers. Happy Bird, will be sold in the taproom and four-packs online for $17.99 to $19.99. The drink is free of calories, alcohol, sugar, GMOs and gluten.
🧔 People
Trulieve appoints Ryan Blust Interim CFO. CFO Wes Getman (joined in January 2024) has departed to pursue other opportunities. Prior to joining Trulieve in September 2018, Blust served as Controller at Vector Solutions, a software company. Blust also served as CFO for Honeycomb Company of America, an aerospace manufacturer, and as Assistant Controller for Marinemax, a retail boat company. The company also appointed Co-Founder Jason Pernell as President.
Glass House Brands Appoint Jon DeCourcey as VP, Investor Relations. Prior to joining Glass House Brands, he was Head of Investor Relations at Ayr Wellness. Previously, DeCourcey held several equity research roles with a focus on the cannabis sector at BTIG, Viridian Capital Advisors and Canaccord Genuity.
🎙️ Interviews
Jason Wild & Ziad Ghanem on 2024 & Future Outlook | Higher Exchanges
As California Cannabis Rush Dries Up, The Artist Tree Looks East | CBT
Socrates Rosenfeld, CEO + Co-Founder, Jane Technologies | Highly Enlightened
Dina Rollman, CEO of StrainBrain | BudsFeed