🤝 Verano Closes Acquisition of AZ and VA Subsidiaries of The Cannabist Co.
$38.4M in First 12 Days of Ohio sales. AFC Gamma Provides $11M Senior Secured Credit Facility to GA Operator. TerrAscend $10M Share Repurchase Program. Canopy Growth CEO David Klein retires.
🌿 Industry
Ohio Dispensaries Reports Sales of $38.4M in First 12 Days. Ohio is on pace for a $1.2B annual market for combined adult-use and medical cannabis sales — CBT
Ohio’s retailers, including 120 with dual-use certificates of operation, reported more than $10.9M in adult-use cannabis sales and $7.6M in medical cannabis sales for the week ending Aug. 17. This compares to $11.5M in adult-use sales and $8.3M in medical sales during the previous five days
Overall, customers and patients spent $38.4M ($22.5M in adult use and $14.9M in medical) in the first 12 days since the adult-use market launched
There are still 14 medical-only retail facilities that applied for adult-use licensure and are awaiting DCC approval for their dual-use certificates
Americans' Views of Marijuana Effects Worsen. However, U.S. adults view marijuana as less harmful to users than tobacco, nicotine and alcohol — GALLUP
Americans’ views of the effects of marijuana have worsened over the past two years, as slim majorities now say it negatively impacts both society as a whole (54%) and most people who use it (51%)
Although majorities of Americans believe each of the eight substances is “very” or “somewhat” harmful to its users, the two-thirds who say marijuana is very (26%) or somewhat (40%) harmful is the lowest
The public’s perceptions of the harmfulness of marijuana have worsened slightly since last year, when 23% viewed it as very and 35% somewhat harmful
New York cannabis growers have 1 year to submit sustainability plan. The state Office of Cannabis Management will start to monitor how efficiently New York farmers grow cannabis in the coming months to ensure indoor and outdoor grows align with the state's broad green energy mandates — Spectrum
Sustainability data submitted to OCM could influence future regulations or incentives for licensees to be more efficient over the long term. But those rules could depend how the Legislature regulates single-use plastic products and waste
July Michigan Cannabis Sales Remain Flat For 5th Month In A Row. Michigan cannabis sales continue to remain flat in July with sales of $287.7M, up 3.2% from June — MItechnews
This follows similar sales figures in May of $278M, $279.6M in April and a record $289M in March
Recreational sales in July recreational marijuana sales totaled $264.4M, up 5.8% from a year ago, while medical sales came in at $1.4M, down 77.9% from July 2023
With an oversupply situation in Michigan, flower pricing for adult-use averaged $1275 a pound, down 7.9% from June and 19.2% from July 2023
56% of applicants in Minnesota’s early cannabis license window are from out-of-state. Those chosen among the 1,800 pre-applications will have a head start when Minnesota issues licenses, likely next year — Star Tribune
State law doesn’t require applicants to live in Minnesota. All social equity applicants who clear an initial review will have equal treatment in the lottery drawing this fall that will determine who wins the license preapprovals
“No rational explanation” for Missouri raising limits for toxic additive. Said NORML’s board chair and Missouri coordinator, Dan Viets, in an op-ed — MJBizDaily
He also noted that vitamin E acetate does not naturally occur in cannabis and is added to increase the marketability of the product by creating greater viscosity
Federal Researchers Explore ‘Paradigm-Changing’ Approach To Detect Recent Marijuana Use Through Breath Tests. It’s the latest in an ongoing effort to find more reliable, accurate ways of field testing for marijuana impairment in drivers and others — Marijuana Moment
Researchers at the National Institute of Standards and Technology (NIST) and the University of Colorado say that taking two separate breath samples within an hour of one another might yield better results than just a single test does. The goal now is to see whether the approach can be translated into a usable field test
Earlier this year, however, a Justice Department researcher expressed doubt over whether testing for the presence of cannabis in someone’s system was the right approach to guard against impaired driving
A Justice Department research says states may need to “get away from that idea” that marijuana impairment can be tested based on the concentration of THC in a person’s system. Frances Scott, a physical scientist at the National Institute of Justice NIJ Office of Investigative and Forensic Sciences, questioned the efficacy of setting “per se” THC limits for drivers that allow a person to be charged with driving while impaired based on the concentration of cannabis components in their system. Ultimately, there may not be a way to assess impairment from THC like we do for alcohol, she said
Many marijuana convictions in Tennessee could be overturned after the Tennessee Bureau of Investigation notified District Attorneys across the state that the testing process for marijuana evidence, in some past cases, was not conclusive
AGP Analyst Aaron Grey projects hemp-derived THC beverage market could reach $13.5 billion, with federal regulations allowing for broader distribution (Benzinga)
Arizona sales between August 2022–July 2024 peaked in March 2023 at ~$127.3M but have since declined to $90.3M in July 2024, a YoY decline of 14.5% (GMR)
Dallas Puts Marijuana Decriminalization Measure on The November Ballot
Kentucky Medical Cannabis License Lottery sees 176 Applications
Massachusetts cannabis equity fund reaches $27.3M
💵 Deals
Verano Closes Acquisition of Arizona and Virginia Subsidiaries of The Cannabist Company. In Virginia, Verano will be the sole vertical cannabis operator in HSA 5 in Eastern Virginia - a region with nearly two million residents and 14 million annual tourists - and gains an active cultivation and production facility and six operational dispensaries in Hampton, Norfolk, Portsmouth, Suffolk, Virginia Beach and Williamsburg. In Arizona, Verano gains an active cultivation and production facility and raises the Company’s retail footprint to eight locations with the addition of stores in Tempe and Prescott, complementing its existing six Zen Leaf dispensaries and multiple cultivation and processing facilities in the state
AFC Gamma Provides $11M Senior Secured Credit Facility to New Private Company Q and Expands Existing Senior Secured Credit Facilities for BeLeaf Medical ($5.5M) and Sunburn Cannabis ($1.8M). Private Company Q is a Georgia-based operator holding a Class 2 cannabis license. The funds will be utilized towards the buildout of a cultivation and processing facility and to establish two new dispensary locations in Georgia. AFC has committed an additional $5.5M under the expansion of BeLeaf’s facility and holds the entire $26.1M expanded credit facility. The additional funds will be used to partially finance the acquisition of two dispensaries in Missouri, increasing the borrower’s vertical integration in the state. AFC has committed an additional $1.8M under the expansion of Sunburn’s credit facility and holds the entire $36.5M expanded credit facility. The additional funds will partially finance the borrower’s buildout of two new dispensaries and additional low-cost cultivation capacity in Florida
Sunburn Cannabis receives additional investment from Poseidon. Sunburn also appointed Poseidon co-founder Emily Paxhia to the Company's Board. Poseidon is an early investor in Sunburn having made their initial investment in 2022. Sunburn is a fast-growing, privately held single-state operator that owns and operates 14 retail locations in key markets throughout the state of Florida
E2P acquires Truss Beverage from Tilray. Financial details of the transaction, made through E2P's subsidiary Ya Ya Foods, were not disclosed. The main asset acquired in the deal is Truss Beverage’s production facility in Belleville, Ontario. The 186,000 square-foot facility was constructed in 2020 and has an annual production capacity of 250,000 hectolitres. Canadian-based Ya Ya Foods is a North American co-packer of aseptic beverages and foods. Its handles products such as high-protein beverages, plant-based drinks, dairy products, fruit juices and sports drinks. It was acquired by E2P in 2021. Based in Chicago, E2P is a private equity firm that invests in food and consumer packaged goods companies. Its portfolio also includes World Food Holdings, Salm Partners, MBC Companies and Gardian Holdings
XS Financial Provides a $2.4M Capex Lease Facility to Jushi. Jushi will purchase equipment with up to 60-month terms
📄 Company Updates / Earnings
Glass House to Appeal DCC Recall for Pre-Roll: ‘We’ve Gotten No Information.” The California Department of Cannabis Control (DCC) issued a mandatory recall for a batch of the company’s Garlic Starship pre-rolls due to the presence of Aspergillus. A DCC representative disclosed that the recall samples tested by the department come from a variety of sources, including dispensaries and distributors. The department does use quantitative polymerase chain reaction tests, with the appropriate negative and positive controls included, when testing for Aspergillus. The representative did not say if the recalled product came from a laboratory reserve sample that initially tested clean before the product hit the market
TerrAscend $10M Share Repurchase Program. There were 291 million Shares outstanding as of August 16, 2024. While the timeframe to purchase Shares starts on August 22, 2024, and ends no later than August 21, 2025, the Company is not obligated to purchase any Shares. The Company does not expect to incur debt to fund the share repurchase program
RIV Capital and Cansortium provide integration update ahead of completing merger. Since announcing the business combination in May 2024, RIV Capital and Cansortium have completed the following integration activities to best position the combined company for success upon completion of the transaction: Adopting Best Practices and SOPs Across the Organization, Strategic Production Planning, Expanding House of Brands, Innovative Product Launches, Strategic Capital Deployment, Enhancing the In-Store Customer Experience
Acreage Q2 2024 Results. Consolidated revenue of $39.0M, Gross margin was 43%, Net loss was ($24.1M), Adjusted EBITDA was $1.9M and Adjusted EBITDA as a percentage of consolidated revenue was 5%, $10.0M in cash. Granted a dispensary permit by Pennsylvania Department of Health's Office of Medical Marijuana, allowing the Company to open up to three medical dispensaries and establish vertical operations in the Commonwealth. Acreage is currently exploring municipalities of interest, with medical dispensary locations expected to open in early 2025
Cansortium Q2 2024 Results. Q2 Revenue up 12% YoY to $27.3M. Adjusted gross profit was $12.3M (48.6% GM), Adjusted EBITDA was $7.7M, $8.5M cash, $67.5M debt
Vext Q2 2024 Results. Revenue of $8.4M; Adjusted EBITDA of $1.1M (12.9% margin). With its footprint in Ohio, Vext is well-positioned to grow revenue and cash flow from operations following the launch of the adult-use program in the state. Vext's Ohio network currently includes a Tier 1 cultivation facility, a manufacturing facility, and two operating retail dispensaries. Upon closing of previously announced acquisitions and completion of additional licensing under state law for the Tier 1 cultivation facility, Vext expects reaching the state dispensary license cap in 2024
C21 Investments Q1 2024 Results. Revenue of $6.6M, up 1% from Q4, Gross Margin of 31%, Cash Flow from Operations of $0.6M, cash of $3.1M
🏬 Retail / Cultivation
Jungle Boys opens 10th Florida dispensary in Miami
CERTIFIED Dispensary opens Greater Cleveland's First Cannabis Drive-Thru Dispensary in South Euclid, OH. The dispensary will be the first for the cannabis brand CERTIFIED, a family-owned and operated facility based in Dayton
C3 Industries Opens 2nd Dispensary in Martinsville, IL, 27th Nationwide. Martinsville is home to the world's largest anvil, is surrounded by beautiful landscapes and bucolic farmland, and is only 15 minutes from Lincoln State Park and 28 minutes from Terre Haute, Indiana
Cookies opens Sunland Park, NM location. Cookies Sunland Park, a new 1,100 square-foot retail space including a full-service drive-thru, is bringing its strains to New Mexico through an exclusive cultivation partnership with Mad Cow Genetics—also the company’s cultivation partner for Cookies Albuquerque, and in the brands’ home state of California. Albuquerque has so far generated more than $414M in sales since legalization, while Las Cruces and Santa Fe are hovering around ~$90M since legalization. However, close behind the top three since sales began is Sunland Park on the Texas-New Mexico border, which has collected $84.7M in total sales since
AYR Wellness opens Manchester, CT Dispensary. This is the Company’s first retail location in Connecticut and 94th nationwide. AYR Cannabis Manchester enters the Connecticut market via Connecticut Cultivation Solutions, an entity co-owned by Tiana Hercules Esq., a Hartford City Councilwoman and AYR. The entity was awarded a Disproportionately Impacted Area (DIA) license in Connecticut and combines Ms. Hercules’ local knowledge, expertise, and community ties, with AYR’s experience in operating dispensaries across its footprint of eight states
MariMed opens second Maryland dispensary in Upper Marlboro, MD. The Company also owns and operates another Thrive Wellness dispensary in Annapolis, in addition to a cultivation and processing facility in Hagerstown
Trulieve opens Dispensary in New Port Richey, FL
Brix Cannabis Launches in New Britain, CT. Brix operates a 10,000 sq ft cultivation in New Britain. The company plans to add 5,000 sq ft of grow space annually for the next few years, ultimately reaching a 25,000 sq ft cultivation. The company is Curaleaf’s social equity joint venture partner
🌱 Product
Dutchie Launches Robust Integration for BioTrack Florida, Enhances Cannabis Tracking and Compliance. BioTrack, now a regulatory requirement since its statewide launch this summer, provides robust tracking capabilities crucial to Florida’s medical marijuana infrastructure. Dutchie is the first point-of-sale system to successfully integrate with BioTrack Florida, streamlining the tracking process and ensuring accurate and efficient data reporting from cultivation to final sale. The integration also includes a seamless connection to the Medical Marijuana User Registry (MMUR), offering dispensaries detailed information on patient allotments and usage guidelines
Khalifa Kush to Launch in Germany with Sanity Group. Beginning in January 2025, avaay will introduce two exclusive Khalifa Kush strains in the form of flower as a medical offering to German patients, with additional strain launches to follow throughout the year. Grown under GACP-certified conditions, these strains were specifically produced for the German market by British Columbia cultivator, Miracle Valley and processed under EU-GMP standards. They will be available in over 3,000 pharmacies throughout the country for licensed patients
TYSON 2.0 Launches Boxing Glove Gummies in Colorado Cannabis Market. This new edible cannabis product line, featuring unique boxing glove-shaped gummies made with full spectrum rosin, is launching exclusively in Colorado through a partnership with Seven Point Distributors and is now available across the state. The brand also expanded distribution into Florida and Illinois with Verano
The Cannabist Company Expands Collaboration with Minority-Owned Edibles Company, ButACake, to the Maryland Market. The partnership expansion into Maryland includes the launch of ButACake’s popular oral dissolvable strips. The 10mg strips are available in 2-packs of Ginger Peach, Chocolate Mint and Blue Blizzard. All products are on shelves at gLeaf locations in Frederick and Rockville, in addition to the Columbia Care location in Chevy Chase. ButACake first teamed up with The Cannabist Company in April of 2023 by introducing infused baked goods to the Delaware market. Through its collaboration with The Cannabist Company, it entered the New Jersey market in late 2023. ButACake’s debut into Maryland marks the company’s third market
🧔 People
Canopy Growth CEO David Klein will be retiring at the conclusion of the Company's current fiscal year ending March 31, 2025. Until this date or such time that a successor is named, Klein will continue in his role as CEO and as a member of the Company's Board of Directors
🎙️ Interviews
“We’ve Accepted Mommy-Wine Culture; Why Not Cannabis?”—Meet The Woman Behind Weed’s PR Powerhouse, Rosie Mattio | Forbes/Javier Hasse
Building and Rapidly Scaling in Public with Brēz w/ CEO, Aaron Nosbisch | High Spirits
Lauren Carpenter: Opening a Dispensary During COVID | CannaBiz Conversations
The Cartoonist Drawing Cannabis Legalization into the Spotlight | STUPIDDOPE
TerrAscend w/ Jason Wild and Ziad Ghanem | Higher Exchanges
Where Cannabis Is Catching Alcohol Off Guard | VinePair
Hirsh Jain On Cannabis And Latest Ohio Numbers | TDR
Kanha: a California cannabis success story | GMR