Interstate Commerce Deck: CLICK HERE
Today were are publishing our thoughts on the potential for Interstate Commerce to become a reality in 2023. California Senate Bill 1326 allows California to enter agreements with other adult use or medical states upon either an indication of tolerance from the U.S. Department of Justice or an opinion by the California Attorney General that doing so will not place the state in legal jeopardy. Add to that, on the other side of the country, at the other end of the traditional cannabis supply chain, New Jersey Senate President Nicholas Scutari, who championed adult-use legalization in the Garden State, has introduced S3012, his state's own interstate commerce bill. The implications for interstate commerce in the cannabis space are huge, and we outline our thoughts in the deck above.
In this deck, we discuss the following topics:
- State laws versus the federal Controlled Substance Act
- States continued progress of cannabis while there has been no movement federally
- Interstate commerce & forcing the federal government to make a decision
- The workings of interstate commerce
INVITE - THE FUTURE OF CANNABIS IS INTERSTATE COMMERCE
CALL DETAILS:
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We will host a call with Adam J. Smith, the Alliance for Sensible Markets president. To talk about how he sees the future of interstate commerce in the Cannabis industry. California's governor is reshaping the industry by beginning to give a lifeline to all the "consuming" states by lowering the cost of goods to allow for the industry's success and jump-start the failing state-led social equity programs.
NEW LONG: GLASS HOUSE Brands (GLASF)
We have been following the progress of GLASF since the de-spac when the company became public on July 5, 2021, through a SPAC transaction with Mercer Park Acquisition Corp. California's latest "state-led" initiative has altered the potential timeline, and a line of sight on interstate commerce could be as early as 2023. This put Glass House Brands' business model front and center to capitalize on this potential. In September last year, Glass House closed on one of the largest greenhouses in the U.S., Located in Ventura County. The Southern California facility consists of a 165-acre property in Southern with a planned 5.5M sq. ft. of cultivation across six state-of-the-art greenhouses to be built out in 3 Phases. When complete, the facility can produce 1.7M dry pounds of cannabis annually. Glass House can produce a pound of cannabis for about $120. These cost advantages will become exponentially important if cannabis is allowed to cross state lines. We believe that this is happening faster than most believe. The company's cost structure makes it a low-cost producer, with production costs 70-80% lower than other multi-state operators. Glass House is vertically integrated, with a 20,000-square-foot manufacturing facility in Lompoc, an hour north of Santa Barbara. This complex produces extracts and pre-rolls and serves as a distribution hub. The company sells its products in Glass House retail stores and other non-Glass House stores.
