RI = East Coast expansion.
Rhode Island will likely become the 19th state to legalize marijuana possession for Adult-use after the House and Senate overwhelmingly passed legislation on Tuesday. Democratic Gov. Daniel McKee is expected to sign the bill. It cleared the House by a 55-16 vote and passed the Senate by a 32-6 margin. “The reality is that cannabis is here in Rhode Island already. We already have all of the challenges of cannabis, but we have none of the safeguards and resources." - Sen Josh Miller. Rhode Island will be the latest state along the East to embrace legalization, following enacting bills in New York, New Jersey, Virginia, and Connecticut last year. In November, voters in Maryland are poised to vote on an adult-use legalization referendum. However, Democratic Delaware Gov. John Carney vetoed a bill on Tuesday that would decriminalize marijuana possession and gifting in the state.
Go time for safe?
House and Senate agree on a timeline for the America COMPETES conference completion.
The language contained in the stand-alone SAFE Banking bill was added as an amendment to a bill passed out of the House called COMPETES. There is also a Senate-passed version of the bill called USICA, which unfortunately does not include anything related to SAFE. There is a formal process underway in which members of both the House and Senate were appointed to a formal conference to negotiate a final version both chambers of Congress will support. Will the SAFE Banking language to make it into the final draft that goes to President Biden for his signature? Here is the current timeline:
• Committee chairs to review items June 6-10
• Hold meetings June 13-16
• Finish conference report by June 21
Ayr In NJ, Finally
AYRWF is a LONG - Why the company had to wait for a month relative to others remains a mystery.
AYRWF announced that the New Jersey Cannabis Regulatory Commission (“CRC”) approved the Company for adult-use cannabis sales in NJ. Ayr currently operates medical dispensaries in Woodbridge, Union, and Eatontown, all located in Central New Jersey, a region of 3.4 million people who only had access to two adult-use dispensaries. The Company’s three retail locations are the maximum allowable dispensaries under current state law. “We are thrilled to be approved for adult-use sales in New Jersey and to have all three dispensaries cleared simultaneously to open for adult-use. Central Jersey has the lowest number of dispensaries per capita, leaving its population under-served compared with the rest of the state. Adult-use sales in New Jersey officially began five weeks ago. BDSA expects New Jersey to be the third-largest contributor to overall US sales growth by 2026, projected to generate annual revenue of $2.3 billion in total legal cannabis sales. Sales of recreational cannabis reached $24.2M in New Jersey in the first month of dispensary transactions (April 21-May 21). In the first three days alone, the Garden State saw more than $3.5M in sales. Overall, there were 212,433 adult-use cannabis transactions at dispensaries, the New Jersey Cannabis Regulatory Commission reported. Including AYR on Tuesday, the CRC approved applications for 11 new retailers to operate recreational dispensaries in the state.
Verano Earnings
VRNOF is a LONG
Verano Holdings reported 1Q22 adjusted EBITDA $80.8M vs FactSet $74.7M and Revenue $202.2M (up 67% YoY and down 4% QoQ) vs FactSet $201.0M. Cash flow from operations for Q1 2022 was $53 million, and free cash flow was $6 million. Management Comments: "We remain focused on execution, evidenced by our continued retail footprint expansion, where we added seven locations in the first quarter, including our first Zen Leaf dispensary in West Virginia. Further, the April launch of adult-use sales in New Jersey generated significant and immediate growth in the state, representing similar opportunities we are poised to capitalize on in future transitioning markets in our portfolio. This summer, we are excited to add Zen Leaf Neptune as an additional adult-use dispensary in a prime Jersey Shore location. Throughout 2022, we will continue to invest back in our business through several cultivation constructions and expansion projects. Overall, we are pleased by our progress in strategically positioning Verano to capitalize on anticipated growth in the second half of the year and beyond."
