Virginia Cannabis Legalized as of today (7/1)

Jushi adds COO from AB InBev, Co-President steps down. Trulieve completes acquisition of Marijuana Retail License for Dispensary Location in Worcester, Massachusetts.

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Virginia Legalized as of today (July 1st). Virginia became in April the first Southern U.S. state to legalize marijuana. Starting July 1, Adults age 21 and older can possess and cultivate small amounts. Adults may legally possess no more than one ounce (28.3 grams) of cannabis without the intent to distribute. Commercial sales of marijuana in Virginia are all dependent on the 2022 General Assembly reenacting specific regulatory sections of the bill, according to Virginia officials. Once that’s approved, retail sales can begin on January 1, 2024, but again, we won’t know for sure until 2022.

Jushi — Management and Board Changes. Leonardo “Leo” Garcia-Berg, a former global supply chain executive for Anheuser-Busch InBev (AB InBev) joins the Company as COO. In his new role, Garcia-Berg will be responsible for driving growth strategies and efficiencies, and coaching and developing team members across the Company’s grower-processor facilities which are currently in Pennsylvania, Virginia, Nevada and Ohio. Erich Mauff is stepping down from his role as Co-President and Director of the Board of the Company, effective July 1, 2021. Jushi has no immediate plans to fill the Co-President position and will seek to fill the vacated Board seat at the appropriate time. The transition of Mauff’s responsibilities in his Co-President’s role capacity has been underway for months. Business Development, led by Olivier Blechner, EVP of Business Development, and Investor Relations, led by Michael Perlman, EVP of Investor Relations and Treasury, will now report directly to Jim Cacioppo. Additionally, Mr. Mauff will remain on as a consultant to the Company for the next 24 months to ensure a continued smooth transition. Jon Barack will remain in his current role as President and will continue to oversee Corporate FP&A, Real Estate, Risk Management, and IT.

Medical marijuana gets broad approval in first vote by North Carolina lawmakers. Medical marijuana won near-unanimous approval in a committee hearing in the Republican-controlled N.C. General Assembly on Wednesday, the first of potentially many votes standing in the way of the plan becoming law here. It’s a sign the bill could have broad support. While the votes were not officially recorded, it appeared that every Democrat voted for it, as did all but two or three Republicans. The bill’s sponsor is Sen. Bill Rabon, an influential committee chairman. And one of the votes in favor of it Wednesday came from Senate Majority Leader Kathy Harrington, a Gastonia Republican. She said her husband was recently diagnosed with multiple myeloma, a type of blood cancer, and she has since come to realize that medical marijuana could help other patients in similar, painful situations. If the bill is passed into law, North Carolina doctors would be able to prescribe marijuana for PTSD, cancer, sickle cell anemia, glaucoma, ALS and several other specific health problems.

Harborside — Completes Salinas Cultivation Facility Upgrades. Harborside has completed the previously announced substantial upgrade of one of its ~45,000 square foot greenhouses at its 47-acre integrated production campus in Salinas, California. The upgrades included, among other things, the installation of blackout curtains, supplemental LED grow lights, and the incorporation of a state-of-the-art environmental control system. The enhancements completed at the Salinas Facility have permitted the Company to implement high-yield indoor cultivation techniques and technology into the existing greenhouse environment. As a result, the annual cultivation capacity of the greenhouse is expected to increase over 50% and by leveraging automated light deprivation technology, the greenhouse is now capable of year-round, high-quality production.

🎙️Weednesdays with Pablo — Curaleaf Chairman Boris Jordan.

🎙️Cannabis Investing Network — Q1 2021 Financial Review of the Big 5 MSOs (ft. Nick Gastevich aka CannaVestments).  Curaleaf, Trulieve, Cresco Labs, Green Thumb and Verano — deep dive into profitability, core footprints, valuation and outlook for each company. Nick suggests that as the broader peer set trades between 10-14x 2022E EBITDA, the time is right for buying these big 5 MSOs.


Deals

Trulieve — Completes Acquisition of Marijuana Retail License for Dispensary Location in Worcester, Massachusetts. Total consideration for the Nature's Remedy of Massachusetts, Inc. Worcester location was $13.5M, satisfied through the payment of $7M in cash and the issuance of 237,881 shares. The acquired location possesses a Final Adult Use Marijuana Retailer License from the Cannabis Control Commission, a Host Community Agreement from the City of Worcester, and other necessary government authorizations to operate as a marijuana dispensary at 142-148 Southbridge Street in Worcester, Massachusetts.

Valens — will manufacture cannabis products for two of Gallery Brand’s flagship brands, Blessed and flir. The Valens Company has entered a custom manufacturing agreement with Gallery Brands, a cannabis brand house with a carefully curated product portfolio with legacy roots. Under the agreement, The Valens Company will manufacture both beverages and edibles for two brands under the Gallery umbrella – Blessed and flir.


👋 Newsletter curated by Dai Truong.