NJ Pension (TLRY)
According to Barrons, The State of New Jersey Common Pension Fund D bought more Tilray last week. The state’s Department of the Treasury, whose Division of Investment oversees the pension, declined to comment on the individual stock investments. Still, the agency noted that it employs a passive investment strategy. Pension Fund D’s total assets stood at $50.5 billion as of June 30, 2020, while total assets for the pension were $80.4 billion, according to the latest annual audited financial statement. New Jersey’s pension bought 179,228 more Tilray shares to end June with 254,596 shares of the marijuana producer. Voters in the state approved a move to legalize the drug in November’s election. Tilray was up 175% in 1Q21 and was down 20% in 2Q21, and down another 19% in July. There is significant hype surrounding this name.
Green Thumb Acquisition
Green Thumb Industries recently closed a transaction to acquire one of only three fully vertically integrated licenses in Rhode Island. Green Thumb acquired one retail and one cultivation license from Summit Medical Compassion Center. Rhode Island reported a total of $60 Million in medical sales for 2020. For a state with only three dispensaries, this is a sizable number expected to grow. With this acquisition, Green Thumb's operations serve nearly 50% of the US population in 14 states. “Entry into the Rhode Island cannabis market further strengthens Green Thumb’s position on the East Coast, a region that has embraced the freedom for adults 21+ to choose cannabis,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. The exact deal amount was not reported.
License-Less Shops Remain Open
A few years ago, Toronto, ON, went to great lengths to close illegal cannabis stores, but now license-less shops have resurfaced. In 2019, the city installed large cement blocks in front of an illegal cannabis store, but they still managed to sell outside the store. The blocks were ultimately removed, and some of these shops remained open. A few dispensaries also started a petition to keep these retail locations open. "Marijuana is legal. Why spend taxpayer's money trying to shut down a business that is in favor of the people? CAFE is for the people," wrote one signee. "The government is just trying to make money off of individuals who truly need their supply." If charges do come, these shop owners could face up to a $250,000 fine and two years in jail. Although the stakes are high, some shop owners refuse to abide by the rules keeping Canada's illicit market very much alive and hurting the licensed LPs.
