Cannabis speaker call
We are hosting a Cannabis Legalization call on 04/14 at 2:00 PM ET with Zander Abrams, the Founder of the Cannabis Policy Forum.
We are excited to host our quarterly Cannabis Legalization call with Zander Abrams, the Founder of the Cannabis Policy Forum. The topics we want to cover can undoubtedly take more than 60 minutes, but we will try to cover as many topics as we can from the thoughts below:
- MORE Act -> Practical implications, Why it is being pushed again.
- Differing Cannabis research bills between the House and the Senate. ->
- CAOA -> Quick overview, and handicap its political chances
- Multi-state commerce agreements -> California's latest attempt, DOJ guidance
- Dormant Commerce Clause and implications of cultivation/processing investments and efficacy of licenses.
Email questions or comments to
Cannabis/Consumables Pro Subscribers CLICK HERE for event details (includes video and materials link)
NJ says yes to adult use, but!
A new $1.0B++ cannabis market just opened up, and to simplify this message from the market, eight companies and 24 stores got the first crack at sales for the next year, and the stocks were lower on the day! This group only catches a bid when DC makes moves toward legalization. Unfortunately, @SenSchumer has hijacked any hope of incremental reform happening. There's still hope for SAFE in 2022, but until then, already voted on and up next for adult use are CT and NY, with MD, OH, and PA potentially on the ballot in 2022 and could go in 2023/24
Yesterday, NJ finally said yes to adult use, with seven of the eight NJ ATCs approved adult-use sales. The one exception was AYRWF, and the stock was down 13.6%. Nearly every company awarded an adult-use license for NJ declined yesterday except AAWH. The lack of an explanation why AYRWF missed today's vote was a big negative for the stock.
AYRWF said on Twitter, "We are disappointed with today's NJ CRC decision not to grant Ayr approval to begin adult-use sales of cannabis in our three open dispensaries. We were notified that our submitted application was complete & had every expectation that we would be part of the initial cohort approved. We remain confident in receiving our approval & this delay does not impact our previously issued guidance. Our financial expectations always assumed a May 24 approval date for ATC conversions, which has not changed. While we are disappointed not to have the additional six weeks of sales that an approval today could have provided, we remain confident that we will receive approvals in the May CRC meeting.
The setback for AYRWF followed a string of bad news for the company, with growing pains and regulatory delays more common for this company. The company is also dealing with a significant corporate governance issue that will likely keep the stock trading at a significant discount valuation to the other Tier 1 companies. Currently, AYRWF is trading at 1.3x and 4.0x 2022 Revenues and EV/EBITDA. Investor perception has turned decidedly negative on AYRWF, despite having strong assets and significant future growth.
In NJ, the approved centers and their satellite shops will be the only facilities selling cannabis initially to both the medical and recreational market in the Garden State until smaller cultivators given conditional approval by the panel can get their operations moving. The facilities that could soon sell adult-use are in:
- CURLF - Bellmawr, Bordentown, Edgewater Park
- VRNOF - Neptune (pending final zoning approval), Elizabeth, Lawrence
- GTBIF - Bloomfield, Paterson, Paramus
- CCHW - Fineland, Deptford
- AAWH - Fort Lee, Rochelle Park, Montclair
- ACRGF - Egg Harbor Township, Atlantic City
- TRSSF - Phillipsburg, Maplewood, Lodi
The panel on Monday also approved another 34 conditional licenses for smaller cultivators and manufacturers to grow crops and build out their facilities. That adds to the 68 approved on March 24, but it could take up to a year for these operations to begin selling cannabis. The commission will bypass a 30-day notification period for actual sales of cannabis to begin at the alternative treatment centers following the approved dispensaries completing four items, including final expansion fees to the CRC.
TRSSF Enters MD
TerrAscend Corp. announced that it has entered into a definitive agreement to acquire Allegany Medical Marijuana Dispensary, a medical dispensary in Maryland, from Moose Curve Holdings, LLC. Under the terms of the agreement, TerrAscend will acquire 100% equity interest in AMMD for total consideration of US$10 million in cash, in addition to acquiring the real estate for US$1.7 million. The Transaction is subject to customary closing conditions and regulatory approvals.
