MA Delivery
Many delivery operators in Massachusetts are understandably complaining about a rule which stands in the way of profitability. This regulation is called the two-driver rule. Regulations from the Cannabis Control Commission require there to be two drivers in all cannabis delivery vehicles. Each of these drivers must also wear body cameras, and the vehicle must be outfitted with a GPS. These rules are one of the biggest challenges to reaching profitability. “It’s not equitable for us as a delivery company, but it’s also not equitable for the drivers,” Salazar said. “If one driver calls out, that means another can’t work,” said Gabe Salazar, founder of We Can Deliver. In a national labor shortage, the costs of having two drivers can add up. In addition to this, due to 280E, these expenses cannot even be written off! Salazar and other operators in the state have been reaching out to the commissioners to request a change of rules or some waiver.
TLLTF Performance
TLLTF is a USA Long.
Two weeks before 3Q21 earnings, Tilt stock was up 6% on the day yesterday. This rise comes after a 17% decline in the past month and down 40% over the last 6-months. There has been some poor publicity out on the health concerns from vaping, which may have led to the poor performance. However, fundamentals are strong, and the better performance may come from the fact that Tilt will likely sell in New York sooner than others due to its partnership with the Shinnecock Indian Tribe. More color on this will be provided on their earnings call on 11/15.
As a reminder, the Jupiter business is worth more than the entire enterprise value of the company!
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OH SALES Tracker
We estimate that OH October sales will be $35 Million, a 5% increase over September and a 58% increase over October last year. In Ohio, Florida, and Pennsylvania, the medical market shows slow but steady growth, while the recreational market sees declining sales. The annual run rate of 2021 sales is about $401 Million.
