AZ medical sales decline
For the month of February in Arizona, sales of Cannabis declined 10% year over year for Medical use. This was likely due to adult-use sales commencement, which began January 22nd when the state approved 73 recreational licenses. In the first ten days of sales, adult-use had revenues of $2.9 Million in the state, which is only to grow in the coming weeks.
Greenrose Acquisition Corp. announces deal (GNRS)
Greenrose Acquisition Corp. entered into definitive agreements to acquire four marijuana businesses in a $210M deal. The companies to be acquired are Futureworks, Shango Holdings, Theraplant, and True Harvest. The companies have operations in seven states: Arizona, California, Colorado, Connecticut, Michigan, Nevada, and Oregon. Greenrose raised $150M in its offering and will raise another $150M for the acquisition. The company expects to trade on the NASDAQ as GNRS when the merger closes. The businesses to be acquired include:
- Futureworks/The Health Center: Three cultivation facilities, one processing facility, and three dispensaries in Colorado with a focus on the Denver metro area.
- Shango: Operations in Arizona, California, Michigan, Nevada, and Oregon. The Nevada and Oregon companies are vertical operations.
- Theraplant: One of only four cultivators in Connecticut. The company also has a processing and packaging facility in Connecticut.
- True Harvest: Cultivation and processing facility in Arizona. Known as a premium craft producer.
NY legalization at an impasse
Politico reported yesterday afternoon that negotiations on plans to legalize adult-use cannabis in New York had hit an “impasse” over how to address impaired driving. “We're trying to figure a way forward so that there will be some understanding of vehicle safety. I'm pretty sure that we'll be able to work through that with the Assembly" Stewart-Cousins added that lawmakers are “working hard on trying to get to an agreement quickly." Sen. Liz Krueger, the Senate Finance Committee chair and sponsor of the Marijuana Regulation and Taxation Act, said in a Monday statement that she was also “very optimistic about completing negotiations and having a three-way agreed-upon bill to legalize marijuana very soon.” Assembly Speaker Carl Heastie, meanwhile, told reporters Monday that he did not yet have a date for when the legislation could move but said the governor is “moving closer to where Majority Leader Peoples-Stokes and Sen. Krueger are” on the issue. New York’s state budget due at the end of March, but it’s unclear whether lawmakers will include marijuana legalization in the wide-ranging spending bill, as proposed by Cuomo, or move it as a separate piece of legislation. Both the Senate and Assembly omitted the governor’s proposed Cannabis Regulation and Taxation Act from their one-house budget proposals unveiled this week.
