Florida Tracker
Things still are not looking good for Trulieve as they continue to lose market share in Florida and deal with JT Burnette's conviction. Verano, Curaleaf, Ayr, Harvest, and Cresco are all picking up the market share that Trulieve has been losing. Trulieve and Verano added one dispensary location in the state, bringing their totals to 89 and 37, respectively. Overall sales have remained fairly flat over the past three months after seeing consistent growth. On the other hand, patient growth remains consistent, growing about .4% each week.
Hexo Offering
Hexo shares plunged 28% Friday when they announced a secondary offering to raise capital to enter the US market. The company raised $140 Million, selling 48 Million additional shares at $2.95 each. The CEO mentioned in an interview that its plan was not to go after the large MSOs in the US but rather use Hexo's "superior" manufacturing techniques that they have already established in Canada and set up facilities in the US. He mentioned that Hexo was eyeing California as its first state to enter in US market. The CEO also said boldly that they would be able to provide cannabis products below the current COGS in California since Hexo specializes in manufacturing and would be better than all other companies in the state. Hexo plans to create a Special Purpose Vehicle to own the California operations and keep all revenues within state lines to comply with current law. Hexo would have an optionality agreement with the SPV for when legalization does occur. At that time, Hexo would own 80% of it.
Important Step For OH
TLLTF is a LONG
Ohio Attorney General Dave Yost has certified a resubmitted petition to legalize marijuana for adults over 21 in the state, marking a significant procedural win for organizers of the effort. Yost previously rejected organizers’ submitted petition language, which he said failed to adequately explain proposals to direct cannabis revenues to social programs in the state and establish an Ohio Division of Cannabis Control, among other issues. The AG says the newly submitted language resolves these issues and that he has submitted the petition certification to the Ohio Secretary of State. Organizers can now proceed toward collecting the 132,887 signatures required to send the proposal to the Ohio Legislature, where lawmakers will have four months to approve or reject the measure. If the legislature fails to act on the referendum, organizers will need an additional 132,887 signatures to qualify for the 2022 state ballot.
