Ohio Tracker
After a long wait, Ohio finally released medical sales data numbers. Since February, Ohio has seen average sales averaging at about $7.5 Million per week. This past week's sales were a 133% increase over last month as Ohio continues to have a strong medical market. The current run rate is $343 Million, which is very large for a medical-only market. The largest players in Ohio are Cresco, Green Thumb, and Acreage.
CA Needs Help
California's legal marijuana industry is struggling. The CA legislature approved a $100 Million plan to help the sector, which continues to face adversity, specifically from illicit operations. Many cannabis growers, retailers, and manufacturers have also struggled to transition from a provisional license to a permanent one renewed on an annual basis. This process requires a costly, complicated, and time-consuming review of the negative environmental effects involved in a business. The new stimulus would provide grants to 17 cities in California, the largest going to Los Angeles. The $100 million would go to local agencies to help with licensing. Some of the money can be used by cities offering equity funding to cannabis businesses owned by people of color. “Gov. Newsom is dedicated to the success of the legal cannabis industry in California,” said Nicole Elliott, the governor’s senior advisor on cannabis. “The purpose of this one-time $100 million in grant funding is to aid locals and provisional licensees, many of which are small businesses, legacy operators, and equity applicants, in more expeditiously migrating to annual licensure.”
Bill to Decriminalize all Drugs
A first-ever bill was just introduced to congress by Rep. Bonnie Coleman, and Cori Bush titled the Drug Policy Reform Act. The proposal would end the threat of incarceration for people caught possessing drugs for personal use. Courts would still have the option of imposing a fine, but that could be waived if a person couldn’t afford it. More importantly, the bill would make it so that the department of health would be responsible for classifying drugs rather than the justice department. We’re really in the infancy stages here,” Coleman said. “We recognize that we’re beyond this being urgent, and so we’ll be doing our outreach and trying to garner the kind of support—not only on the Senate side but even on the House side, working with the Progressive Caucus, the Black Caucus, the Hispanic Caucus and every other caucus to get as many members as possible to sign on.” The bill is likely to not get anywhere, but it is a step in the right direction for cannabis and social reform.
Columbia Care
Columbia Care Inc. announced that it has entered into a definitive agreement to acquire Medicine Man Denver, a premier vertically integrated cannabis company that has been serving the Denver metro area since 2009. The acquisition will add one cultivation facility and four dispensaries, including one co-located adult-use and medical location and three adult-use facilities to Columbia Care’s national footprint. The upfront consideration of $42.0 million, comprising $8.4 million in cash and $33.6 million in stock, represents a multiple of approximately 4.5x projected 2021 EBITDA. The transaction terms also include a potential additional milestone payment in 2022 if certain performance targets are met.
