Massachusetts Tracker
Adult-use cannabis sales continue to rise in Massachusetts, with sales in the past two weeks of $25 Million and $26 Million, respectively. Last week (Week of 4/16), sales were up 4% WoW. MA stopped reporting sales for a brief period last year, so the tracker does not display YoY sales data. Companies with the largest footprint in MA are FFNTF, GTBIF, MRMD, AYRWF, and ACRHF.
FFNTF GTBIF and AYRWF are on our LONG list. We presented a deck on our long thesis for FFNTF on the cannabis holiday of 4/20, click to watch below.
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CLICK HERE for a webcast replay and materials of the 4Front Deck |
Valens Entry to the US Market
The Valens Company, a leading manufacturer of cannabis products in Canada, announced that it would be entering the US market with the acquisition of Green Roads. Green Roads is a US-based CBD company founded by pharmacist Laura Baldwin Fuentes. Green Roads is direct to consumer company and ships to almost every US state. The purchase was for $40 Million, equating to 1.8x 2020 revenue with a maximum earnout of $20 Million subject to achieving certain EBITDA milestones in 2022. Green Roads is the 2nd largest CBD company in the US as of Q3 2020, increasing market share QoQ.
Louisiana Legalization
Lawmakers in Louisiana voted to approve a bill to legalize marijuana in the state with a 7-5 vote. The vote will now move to the full chamber. The proposal would allow 21+ adults to purchase and possess marijuana from licensed retailers. The referendum does include a provision that gives local jurisdictions the ability to opt-out of allowing cannabis businesses in certain areas. This provision, if kept, will give LA a similar footprint as CA in the sense that there will be cannabis deserts in some areas. This is, however, a much better resolution than no legalization at all. We estimate that the state will have an adult-use market of $540 Million upon maturation. No US MSOs currently operate in LA.
