DC Hearing
The District of Columbia has scheduled a public hearing on Nov. 19 to consider legislation from Chairman Phil Mendelson that would finally legalize the sale of recreational marijuana. For background, DC has been a recreational district since 2014 but never allowed the sale of THC products. Many dispensaries tried to get around this by "gifting" weed instead of selling, but no prominent players are willing to do so. This summer, the house was able to pass the removal of the Harris Rider, which explicitly prevented the sale of cannabis in DC. But before any legislation can be passed, the Rider must be scrapped. With the way the senate schedule is looking, it likely won't be done until later this year. Still, a hearing to discuss the topic is notable. In the past, holding even a public debate on the topic was banned due to this Rider. During the hearing, it is likely that lawmakers will discuss how sales should occur rather than if. If sales do begin in DC, we estimate that adult-use sales will amount to $250 Million, a number comparable to many smaller states.
Is Rhode Island very close?
"I'm optimistic," said Democratic Sen. Josh Miller, the chief author of a recreational legalization bill that passed that chamber in June. "We continue to discuss outstanding issues between the House version and the Senate version. We get closer every day." According to Miller and Democratic Rep. Scott Slater, among the last sticking points, who has long championed legalization: how many business licenses should be permitted and the best method for expunging old marijuana convictions. But it's still unclear whether a special session will be called to address the issue. A spokesperson for Governor said it's up to lawmakers to cut a deal: "The Governor is monitoring this issue closely and looks forward to the passage of an adult-use marijuana package that prioritizes public health, public safety, and the creation of a diverse, inclusive, and equitable cannabis industry in our state."
MA Tracker
After months of growth, sales have begun decelerating in Massachusetts. Sales were down 3.6% during the week of 9/17 sequentially. YoY change has been decelerating as well. YoY growth was 45% this past week. The annual run rate in MA is $1.48 Billion.
VFF Sells to Australia
Village Farms-owned Pure Sunfarms has completed its first export shipment of cannabis to Australia. Altum International will sell the products in the medical market in Australia. The shipment is the first international export shipment for Pure Sunfarms and the first shipment to Australia under a three-year supply agreement with Altum. Pure Sunfarms owns a minority interest in the Australian company. "This is another important milestone for Village Farms' cannabis strategy for several reasons," said Michael DeGiglio, CEO, Village Farms International. "For Pure Sunfarms, the exportation of their leading cannabis products represents a significant long-term opportunity to leverage their scale and position as the top-selling dried flower brand in three of Canada's largest provincial markets3 for opportunities beyond the Canadian market. For our partner Altum, it marks commercial entry into their third Asia-Pacific market and entry into their first high-THC cannabis market. And for Village Farms overall, it is an example of the significant synergies that are developing amongst our family of brands and partners."
