Ohio Tracker
After a slow start, Ohio’s medical marijuana market is strengthening. So limiting issues are restrictive patient-purchase limits, low patient participation, and insufficient cultivation capacity. Ohio has a limited licensing structure and a state of 12 million people, with the prospects for adult-use legalization in the future. Ohio legalized medical marijuana in 2016, but sales didn’t launch until early 2019. Ohio medical marijuana sales were running at only about $2.5 million a week before the coronavirus pandemic. Still, sales are now $5-$6 million a week, according to recent sales data seen in the chart. AYRWF announced an $18.2 million deal late last year to buy a 9,000-square-foot processing facility in Ohio and acquire exclusive management rights to a 58,000-square-foot cultivation facility under construction. Ohio fits the AYR target market on going deep in limited-license states with large populations and attractive assets that will likely go recreational soon
Harvest Posts strong numbers
4Q20 sales grew +85% year over year and +13% sequentially, with same-store sales of +57% year over year in 26 stores and +7% sequentially (34 stores). SG&A of $26.9 million was 38% of revenue, and 4Q20 net loss before non-controlling interest was $7.4 million. 4Q20 GAAP adjusted EBITDA was $9.1 million; under IFRS accounting, and (A) EBITDA was $16.4 million. The company raised $32.4 million in October 2020 and completed Arkansas assets' divestiture for $12.9 million net proceeds in November 2020. The company also paid down $20 million in real estate-backed financing and converted $19.1 million in debt to equity.
NY, NY
A bill to legalize marijuana in New York is heading to Gov. Andrew Cuomo’s (D) desk following back-to-back votes in the Senate and Assembly on Tuesday. Legislative leaders made it clear that they intended to swiftly advance the legislation, which resulted from extensive negotiations with the governor. The bill's latest text was only released on Saturday, yet it moved through four committees and passed on the floor in both chambers of the legislature within the span of hours just days later. The Senate approved the measure in a 40-23 vote, and the Assembly passed it 100-49. On Twitter, Cuomo called the move “a major step forward for the Empire State” and said he looks forward to signing the bill into law.
More detail on the winners and losers when we get a chance to see the final regs.
