Cannabis Insights | Colorado's Record Month & Hawaii Passes Edibles Bill

07/15/20 09:12AM EDT

Below is a complimentary excerpt from an institutional research note written by our Cannabis analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com

Cannabis Insights | Colorado's Record Month & Hawaii Passes Edibles Bill  - 7 15 2020 9 02 55 AM

Colorado Legal market surges in May, with a record month in total sales

On a YoY basis, the total marijuana sales grew 46% in May, the best month for total sales since recreational shops opened in Colorado in 2014.

Sequentially, medical and recreational increased by 18% and 29%, respectively, for a combined total of $235 million in sales and a jump of 27% from April. May's results defy the state's initial projections of sales falling due to COVID-19 heavily impacting the tourism industry and resident wages.

The Governor's Office of State Planning and Budgeting later revised that projection a little over a month later in early June, predicting that state tax revenue would increase in the' 20–'21 fiscal year by ~1.5% YoY.

Cannabis Insights | Colorado's Record Month & Hawaii Passes Edibles Bill  - 7 15 2020 9 00 57 AM

Hawaii lawmakers pass edibles bill for medical marijuana

The Hawaii State Legislature passed a bill that permits cannabinoid-infused edible products to be dispensed by the state's eight medical cannabis licensees.

The bill has been sent to Gov. David Ige (D), who must sign it before it becomes law. Upon signing, the bill would take effect at the beginning of 2021, pending regulation by the state's health department.

Hawaii has ~30,000 registered patients in its medical marijuana program.

The inclusion of edibles in the state's medical-marijuana program could provide a healthy boost to sales, furthered by COVID-19's impact on the health consciousness of weed consumers.

Edibles nationwide have increased in popularity as a mode of consumption due to concerns on respiratory risks associated with contracting coronavirus.

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