The field is getting smaller
Cresco and Columbia Care are LONGS
Reuters - U.S. cannabis producer Cresco Labs is in advanced talks to buy rival Columbia Care for around $2 billion, three people familiar with the matter said on Tuesday. If a deal is finalized it would merge the 4th and 7th largest companies by revenues and make a clear #2 player. Below is a map of what two companies assets:
Cannabis Reform Its F-in Crazy
On March 7, 2019, the SAFE Act was introduced in the U.S. House of Representatives by Ed Perlmutter (D-CO).
To date, the SAFE Banking Act has passed the U.S. House six times, most recently in February 2022 as an amendment to the America COMPETES Act. Previously, the SAFE Banking Act, as a standalone bill, passed the House by a vote of 321 to 101 on April 19, 2021, with 106 Republicans voting in support. SAFE was a democratic bill that could have passed easily but failed because of @SenSchumer. Broader cannabis reform is more important but establishing how much reparations (in form of taxes and cannabis licenses) are to be paid to those impacted the most by the war on drugs will take significantly more time. Passing SAFE ASAP will not impede that process, but make the process smoother for all involved.
A Hedgeye subscriber accurately describes how the Democrats have abandoned cannabis reform:
"Regarding cannabis reform, it is not "crazy" to think that Rs would pass the SAFE Banking (and/or be MORE likely to pass it than Ds, who want full decriminalization). It is very unlikely to be full marijuana legalization / de-scheduling in this Congress and/or an R-lead Congress, and SAFE may be more likely to pass with Rs at the helm. I think Ds may be scared that Rs pass it while they couldn't, which would be "pie in the face."
What will @SenSchumer do?
GAME ON New Mexico
How pumped are the people in Lubbock, Amarillo, and other towns in Texas that they will be closer to having access to high-quality flower! The pressure on Texas to legalize is growing!
New Mexico is set to roll out the nation’s newest adult-use marijuana market on April 1st. MJBizDaily projects that adult-use sales will build gradually from $100–$125M in the first year to $325–$400M by the fifth year of the program. Ultra Health conducted a study that shows 40%–42% of all adult-use cannabis will be derived from out-of-state purchases, particularly in Texas. The state had 38 million visitors in 2019. Duke Rodriguez, CEO of Ultra Health, the state’s largest medical cannabis operation, predicted big problems down the line. He noted that the state capped plant production at 20,000 per grower while allowing an unlimited number of retail licenses. Within a year, “We will probably need to pare back as many as 100 locations, and there will be a lot of small business that will be hurt very badly” in conversation with the Santa Fe New Mexican.
