Cannabis Industry Update & Best Idea Deep Dive (AYRWF, GTBIF, CCHWF)
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Participating Dialing Instructions Toll-Free: Toll: UK: 0 Confirmation Number: 13714400 CLICK HERE for event details (includes video, dial-in, and materials link) |
We will present a more in-depth look into three of our Best Idea LONGs: AYRWF, GTBIF, and CCHWF. While we wanted to present our other new best ideas TRSSF and FFNTF, unfortunately, given our self-imposed time limit of 45-60 minutes, it's impossible to present all the relevant industry and company data. We will follow up with another deep dive into those two companies in the coming weeks.
We will look at each company's overall market position, competitive conditions, and growth prospects. We will look at profitability trends for 2021 for each company. We will also look at the industry's current political climate, including the prospect for legalization in 2021 and what that means for key industry players.
Some of the macro topics to be discussed include:
- An update on crucial Biden Administration officials and how it may impact the cannabis industry. Democrats will have a shot at deploying reconciliation, the powerful budget tool this year, after winning a narrow majority in the Senate. Reconciliation presents Democrats with an opportunity to pump billions of dollars into the economy and reshape social policies. Will cannabis reform be inserted early into the next stimulus package?
- Will we see cannabis reform in the "first 100 days?"
- While limited in how often they can use reconciliation and what it can be used for, Democrats will have as many as three tries. There's precedent for using it twice in a single year — Republicans deployed reconciliation in 2017 in an unsuccessful attempt to repeal most of Obamacare and then later to successfully pass their massive tax overhaul. How exactly Democrats will use the budget procedure remains to be seen; coronavirus relief, health care expansion, infrastructure investments, and clean energy are all on the table. How does MJ fit into this scenario?
- Which states are likely contenders for legalization in 2021 (the list seems to grow daily)?
- A ranking of essential cannabis (Medical & Recreational) states, including current sales trends.
HEXO-Molson Coors JV, Truss CBD, launches CBD-infused beverage in CO (HEXO, TAP)
Truss CBD USA, a joint venture between HEXO Corp and Molson Coors, announced the U.S. launch of Veryvell, a new line of non-alcoholic, sparkling CBD-infused beverages, available exclusively in Colorado. The hemp-derived drink comes in three flavors: Focus (Grapefruit Tarragon), Mind & Body (Strawberry Hibiscus), and Unwind (Blueberry Lavender). A 12-ounce can is expected to be priced at $3.99 or $14.99 for a four-pack. Veryvell marks Truss CBD USA’s first entry in the American CBD market.
Virginia announces adult-use legalization plan (CCHWF, JUSHF)
VA Gov. Ralph Northam’s administration announced their adult-use legalization plan yesterday. The proposed bill would:
- Allow adults 21 and over to purchase and possess up to one ounce of cannabis and cultivate up to four plants for personal use, two of which could be mature.
- Establish a new 21% tax on cannabis sales. Local jurisdictions could levy an additional 3% tax. Existing state sales tax would also apply on purchases, potentially making for a 30% sales tax.
- Cannabis sales tax revenues would go towards pre-k education (40%), a Cannabis Equity Reinvestment Fund (30%), substance misuse and treatment programs (25%), and public health initiatives (5%).
- Adult-use sales would begin on January 1, 2023. Regulations for the adult-use market would have to be promulgated by July 1, 2022.
The state’s medical marijuana program came online in October 2020. Virginia currently limits licenses to five vertical operations.
