SAFE Act reintroduced in the Senate
Senator Merkley (D) from Oregon and Senator Daines (R) from Montana and 27 co-sponsors reintroduced the SAFE Banking Act. The bill would provide safe harbor to financial institutions that work with state-legal marijuana companies. The House passed the same bill in 2020, but it stalled in the Senate. With new Senate leadership in place, many favor cannabis policy reforms, and the narrow scope of this bill should allow for smooth passage. Aaron Smith, co-founder, and chief executive officer of the National Cannabis Industry Association, said in a press release. “This bill is a meaningful first step that will have immediate benefits in terms of safety, transparency, fairness, and much-needed economic opportunities while Congress continues working toward more comprehensive solutions to end prohibition and sensibly regulate cannabis.”
We held a webcast with Steve Kemmerling of the CRB Monitor that was very thorough in describing what is in the SAFE Act compared to other cannabis legislation. For a replay CLICK HERE.
Maryland waits on adult-use (TRSSF)
Maryland will have to wait at least a year to pass adult-use marijuana legalization. The state legislature missed the deadline for bills crossing from one chamber to the other. Democrats control both chambers, so many in the industry thought Maryland would likely pass adult-use in 2021. However, the bill got stuck in committee over social equity and industry diversity issues. Medical cannabis sales in the state have grown to nearly $500M, projecting to be considerably larger when adult-use is approved.
TerrAscend expects to enter Maryland early in Q2 when it receives final regulatory approval to assume control of the HMS business. Over time TerrAscend expects to achieve full vertical integration in Maryland. Management’s guidance does not include any expansion of the business. Investments to expand Maryland, New Jersey, and Pennsylvania will be key growth contributors in 2022 for TerrAscend.
AYR Closes AZ
Ayr Wellness announces yesterday that it closed its $75.4 Million Arizona acquisition. The purchase price is made up of $9.5 million in cash, $37.4 million in stock (paid in shares exchangeable into approximately 2.57 million subordinate voting shares of Ayr and $28.5 million in seller notes, subject to working capital adjustments. An additional 2.0 million shares will be held in escrow and payable upon reaching certain cultivation targets at the facility under development. Ayr purchased 100% of Blue Camo, LLC's membership interests, a vertically integrated operation in Arizona. Key operations include three Oasis-branded dispensaries in the greater Phoenix area, a 10,000 ft² triple-stacked cultivation and processing facility in Chandler, and an 80,000 ft² cultivation facility under development in Phoenix.
