Illinois tops $1 billion in legal sales in 2020 (CRLBF, GTBIF, CURLF, CCHWF, ACRHF)
December’s adult-use sales in Illinois jumped 15.5% MoM to $86.9 million, closing out 2020 with a record month likely lifted by holiday spending. With the first full year of operations for the state’s adult-use marijuana program, total sales were $669.1 million, with in-state and out-of-state resident sales at 74% and 26%, respectively. Combined with medical marijuana sales YTD through November 2020’s total legal sales exceed $1 billion. While December’s medical marijuana sales have yet to be published, monthly medical sales have averaged $31.6 million over the past six months, which would suggest an estimated $1.03 billion in legal sales for 2020. December’s adult-use sales alone suggest annualized revenues of $1.04 billion; including medical, December’s legal sales suggest annualized revenues of $1.42 billion.
The Illinois market’s potential has been hindered due to a licensing imbroglio in September, which prompted several lawsuits and prevented a further 75 adult-use dispensary licenses from being issued due. Despite the current licensing mess, supply issues, the coronavirus pandemic, and economic turmoil, the legal market in Illinois serving more than 8.6 million people 21 years and over has surpassed the $1 billion milestone with its first full year of recreational sales.
Both Cresco Labs and Green Thumb Industries are key beneficiaries of Illinois's legal market as the state’s largest operators by the retail presence and cultivation space.
Jushi Holdings increases Q4 2020 guidance (JUSHF)
In addition to announcing an overnight marketed offering yesterday, Jushi has revised its Q4 2020. Jushi is updating its previously announced Q4 2020 revenue and Adjusted EBITDA guidance. The company now expects Q4 2020 revenue of between $32 to $33 million, up from $28 to $30 million, and maintains Adjusted EBITDA guidance of $2.5 to $3 million. The company maintains its previously announced 2021 revenue guidance of $205 to $255 million and 2021 Adjusted EBITDA guidance of approximately $40 to $50 million.
Jushi is an MSO with targeted assets in highly populated, limited licensed medical markets with a trajectory toward adult-use legalization, such as Pennsylvania, Virginia, and Ohio, and limited license, fast-growing, large adult-use markets as Illinois, California, and Nevada. The company is one of the largest competitors in the Pennsylvania market, with eight operational dispensaries, licenses for seven more, and a 90,000 sq. ft. grower-processor facility.
Georgia runoff elections today
Today, Georgia’s Senate runoff elections are critical for any chances of meaningful cannabis legislative reform on the federal level happening in the near-term. Two Republican senators, Kelly Loeffler and David Perdue are up against two Democratic challengers, Raphael Warnock and Jon Ossoff, respectively. The outcome of these races will dictate the controlling party within the Senate. Mitch McConnell and most Republican senators are opposed to legalization – any measures passed by the Democratic-controlled House, like the MORE Act, are likely DOA in the current Senate. While Democrats winning in Georgia would not guarantee the MORE Act’s passage, it would certainly allow for serious negotiations to take place. A Democratic win for both seats would give the party control over the Senate, with Vice President-elect Kamala Harris as the tiebreaker.
Warnock and Ossoff are both in favor of cannabis and drug policy reform.
