Surgeon General Comments
The US Surgeon General Vivek Murthy was on CNN yesterday and expressed his views on marijuana. “When it comes to decriminalization, I don't think that there is value to individuals or society to lock people up for marijuana use. I don't think that serves anybody well,” Murthy stated. “I do think that, in terms of our approach to marijuana, I worry when we don't let science guide our process in policy-making,” he added. His comments come after democrats released their proposal to decriminalize marijuana at the federal level. Although from a physician's perspective, he does not have an opinion on marijuana yet, he says that we must weigh the drug's benefits and costs. Putting the costs and benefits together will allow us to make the right policy decision. Time will tell if his comments will affect the views of the president on federal legalization.
Ayr Acquires Tahoe Hydro
AYRWF is a USA Long.
Ayr has announced a definitive purchase agreement to acquire Tahoe Hydroponics Company, LLC. Tahoe Hydroponics is an award-winning cultivator with two locations in Nevada. The deal's total value was $17 Million, made up of $5 million in cash, $3.5 million in debt, and approximately $8.5 million in stock. Based on current projections, Ayr estimates it is paying approximately 4.5x Tahoe Hydro/NV Green’s combined 2021 Adjusted EBITDA. These new cultivation assets will support Ayr's six dispensary locations in the state. Ayr already had three cultivation facilities in Nevada, but apparently, they were not sufficient to support the demand from their retail locations. Jonathan Sandelman, CEO of Ayr, said, “The Tahoe Hydro acquisition perfectly encapsulates Ayr’s strategy. We seek to be the largest scale cultivator of high-quality cannabis in every market where we operate. Tahoe Hydro has demonstrated time and time again its ability to produce a flower that meets the exacting standards of quality that Ayr sets throughout its organization. We could not be more excited to bring their talented team of cultivators into our organization and add their impressive flower to our Nevada wholesale and retail offerings.”
GRAMF's New App
The Apple store recently removed its ban on weed delivery apps, and US MSO's are quickly hopping on the train. Eaze cannabis delivery was the first to offer cannabis delivery. They coined themselves as the "Uber of pot." The Parent Company just released their app called Caliva, which is the name of their brand. The Caliva app is fully integrated with shopping capabilities, allowing customers to browse products, complete their purchase, schedule delivery and track their order to see when it is out for delivery or ready for pickup. Throughout the shopping process, expert wellness consultants staff the online chat for questions. In addition to this new, convenient way to purchase safe, legal cannabis products, the app includes various rewards opportunities. It serves as a hub for the Company's Caliva CLUB loyalty program, allowing customers to earn cash reward points through in-app purchases and referrals, in-store and online. We will be keeping a close eye on app downloads for Caliva and gauge if it will have a material increase to their revenue.
