Maryland Tracker
Maryland continues to see steady growth in the medical space with double-digit YoY sales. The state has an annual run rate for 2021 of $551 Million in revenue calculated using January sales. Curaleaf and Verano holdings both have the highest number of dispensaries in the state, each with four.
NY Legalization
NY officially passed a law significantly expanding the medical program and legalizing adult-use cannabis representing a massive domino falling in this country. N.Y. is the 4th most populated state in the country, with almost 20 million total residents who will now have access to regulated cannabis products. The state will also benefit from the jobs, tax revenue, and ancillary business opportunities that this industry creates. N.Y. made an essential step in creating a competitive market with a strong emphasis on social equity and prioritizing ownership diversity. Too many people in politics, New York, is the financial and cultural capital of the world and could help expedite the legalization process for adult-use at the Federal level. At the very least, the SAFE Act has a greater chance of passing in the short run.
As you can see below, ten incumbent operators currently have a significant advantage in creating the N.Y. adult-use market. The incumbents will have the ability to increase their retail store count from four to eight medical dispensaries, with the option to co-locate three of those with adult-use retailing. Also, existing operators will be permitted to operate cultivation, manufacturing, and wholesale distribution of their products to all current and future dispensaries around the state. It's expected that N.Y. will be an underserved market for years as hundreds of new dispensaries will be authorized under the program. A large portion of the cannabis sales tax revenue will be directed to the communities most impacted by the war on drugs. Significant improvements to the medical cannabis program include the sale of flower as an approved form and the expansion of qualifying conditions to any ailment at healthcare practitioners' discretion. It is estimated that the New York cannabis market will grow to $3.5-$4.5 billion at maturity.
- Green Thumb Industries (GTBIF) : 3 locations (52 total locations)
- Cresco Labs (CRLBF): 4 locations (25 total locations)
- Columbia Care (CCHWF): 4 locations (43 total locations)
- Curaleaf (CURLF): 4 locations (90 total locations)
- Medmen (MMNWF): 4 locations (32 total locations)
- iAnthus Capital (ITHUF): 3 locations (31 total locations)
- Acreage Holdings (ACRDF): 4 locations (24 total locations)
- Vireo Health (VREOF): 4 locations (13 total locations)
VRNO in PA
Verano Holdings (VRNO) has entered into a definitive agreement to acquire all of the issued and outstanding equity interests of The Healing Center, LLC, a medical cannabis dispensary group in Western Pennsylvania, for a total of US$110.3M, which is expected to be satisfied by the payment of US$55.15M in cash and US$55.15M in a combination of Class A subordinate voting shares and Class B proportionate voting shares of Verano. Of the cash amount, 50% is payable at closing, and the remaining 50% is payable 60 days after closing. The Healing Center, LLC operates three medical marijuana dispensaries in Cranberry Township, Washington, and Monroeville. The Healing Center’s management team will remain with the Company. Closing on the foregoing transaction is subject to customary conditions, contingencies, and approvals, including regulatory approval.
