Kaitlin Domangue, Author at Green Market Report

Kaitlin DomangueKaitlin DomangueMarch 4, 2021
Daily-Hit-Header.png?fit=960%2C400&ssl=1

5min2320

It’s time for your Daily Hit of cannabis financial news for March 4th, 2021. 

On the Site

Columbia Care Guides Higher for 2021

Columbia Care Inc.  (OTCQX: CCHWF)  released preliminary results for the fourth quarter and full year ended December 31, 2020 and issued 2021 guidance. Actual revenue rose 228% in the fourth quarter to $76 million versus $23 million for the same time period in 2019. 

While this is a solid performance, it does miss the analyst estimates for revenue of $79 million in the fourth quarter according to Yahoo Finance. The combined results for the fourth quarter are listed as $81 million. 

 

Cannabis Companies Go On Buying Spree

This week has been unusually active as cannabis companies have been on a major buying spree.

  • Schwazze acquires Star Buds for roughly $72.3 million
  • Greenlane acquires Eyce for an undisclosed amount
  • Terra Tech buys UMBRLA, Inc., recently rebranded as Unrivaled for an undisclosed amount

 

PACT Act to Apply to All Vaping Products

Amendments to the Prevent All Cigarette Trafficking (PACT) Act may have caused cannabis to hit yet another setback. The PACT Actt has been amended to include “electronic nicotine delivery systems”, which looks inclusive to cannabis at first glance. However, it’s described as followed:

“any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device including an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part, or accessory of a device described without regard to whether the component, liquid, part, or accessory is sold separately from the device.”

This means that USPS can no longer deliver cannabis vape products to consumers. 

 

Delic Moves To Focus On At-Home Mushroom With Homestead Acquisition

Psychedelic media company Delic Holdings Inc. (OTCQB: DELCF) has acquired mushroom kit maker and media company Homestead brands in an all-stock deal. DELIC issued subordinate voting shares worth $50,000 and 50,000 incentive stock options were also granted to Homestead founder David Tatelman, with an exercise price of $0.58. David Tatelman will act as a consultant to the company.

 

Charlotte’s Web Moving Beyond Hemp

Well-known hemp CBD company Charlotte’s Web Holdings, Inc.  (OTCQX: CWBHF) is expanding beyond its current model with a planned acquisition of privately-held Stanley Brothers USA Holdings. Stanley Brothers is a cannabis wellness incubator currently operating in three states (Colorado, California, Florida) with expansion plans underway in eight additional states.

The acquisition though isn’t immediate. Instead, Charlotte’s Web is pursuing a five-year option plan valued at $8 million, which could be extended to seven years.

In Other News

Tryp Therapeutics Announces Application to List on OTCQB

Pharmaceutical company focused on identifying and developing clinical-stage compounds for diseases with complex and unmet medical care, announced today their application to list on the OTCQB® Venture Market OTCQB. 

 

Illinois Dispensaries See $2.88 Million in Daily Sales in February 

Illinois dispensaries sold almost $2.9 million dollars worth of cannabis last month, outpacing the record set just one month earlier. The state’s retail shops sold more than $80 dollars in adult-use cannabis last month, a slight drop from $88 million in February. 


Kaitlin DomangueKaitlin DomangueMarch 2, 2021
Daily-Hit-Header.png?fit=960%2C400&ssl=1

10min2650

It’s time for your Daily Hit of cannabis financial news for March 2nd, 2021. 

On the Site

Collecting and Storing Cannabis Pollen

Most growers these days are only interested in female plants, but if you want to cross different strains and breed new combinations, you’ll need the pollen. And in fact, few companies sell pollen so it’s actually much more practical to just collect your own. For indoor growers, collecting it is the only option, since nature’s elements are not present to spread the pollen for them.

Pro tip: If you are storing seeds for later pollen collection, best to occasionally pull one out and give it a germination test to make sure the little babies are still active and viable.

 

The Massachusetts Cannabis Industry is a Billion Dollar Marketplace

Cannabis business consulting firm Nucleus One recently released the findings of their February 2021 Massachusetts Adult-Use Marijuana Market Report. Nucleus-One tracks and analyzes data from the Cannabis Control Commission of Massachusetts. February’s report heralded good news for the Commonwealth’s cannabis industry after a short-lived decline in sales in 2020. Since the decline, December and January 2021 saw unprecedented sales, with over 98 active retailers in the state. This growth is due to higher sales in product categories other than flower shares, which hit an all-time low in December. 

 

CBN Market Targets Sleep

The demand for sleep aids and medications has seen a similar surge, and with it the debut of products containing Cannabinol (CBN), a minor cannabinoid with what some claim is a uniquely sedative effect.

Unlike CBD, CBN is not present in significant quantities in fresh marijuana, but when unheated marijuana ages or is exposed to air and light, the THC in it turns to CBN.

 

Circle K Ramps Up Cannabis Ownership

Alimentation Couche-Tard Inc. or ACT, the owners of Circle K have increased its equity stake in Canadian cannabis company Fire & Flower Holdings Corp.  (OTCQX: FFLWF). ACT announced that it plans to convert all of its approximately $28.5 million outstanding principal amount of 8.0% secured convertible debentures issued in April 2020 as well as the conversion of approximately $23.6 million principal amount of 8.0% unsecured convertible debentures issued to 2707031 Ontario Inc. Following the conversion, ACT will have converted a total of approximately $52 million principal amount of debt to equity and ACT will hold 19.9% of the issued and outstanding shares of Fire & Flower.

 

High Tide Crushes Fourth Quarter, 166% Increase in Revenue

Canadian cannabis retailer, High Tide Inc., (TSXV: HITI) (OTCQB: HITIF), announced their Q4 earnings yesterday for 2020. Despite the curveballs 2020 threw, High Tide landed on top, and reported a 118% increase in revenue bringing the total to $24.9 million for the fourth quarter. The revenue increase accounted for a 166% year-over-year growth, and brought the year’s total earnings to $83.3 million. 

In Other News

NeonMind Biosciences Inc. Files for Four Additional Provisional Patents

NeonMind Biosciences Inc. (CSE: NEON) (OTC:NMBDF) (FRA: 6UF) announced that they have filed four additional provisional patents on psilocybin preclinical data. NeonMind has a consumer products division focusing on medicinal mushroom infused products, as well as a pharmaceutical division focused on drug development of psychedelic compounds. 

The provisional patent features data derived from the company’s initial preclinical trial that began in November 2020. This trial examined the potential use of psilocybin as a treatment for weight loss. NeonMind’s proprietary preclinical data shows promise that both low and high dose psilocybin may reduce weight gain and that the reduction in weight gain can occur in a short period of time. 

“We are encouraged with the preliminary results obtained from our preclinical trial,” says NeonMind President & CEO Robert Tessarolo. “Through an expanded portfolio of patent applications, NeonMind is uniquely positioned to pursue exciting drug development opportunities in the enormously underserved weight management market. There have been so many solutions developed in the past that have disappointed; a new approach is desperately needed. We are actively building out our capabilities to execute the critical phases of drug development needed to support new drug applications to the FDA.” 

 

TILT Holdings Inc. Approved for Cultivation Expansion at Massachusetts Facility 

TILT Holdings Inc. (CSE: TILT) (OTCQX: TLLTF), announced its approval for expanding cultivation at their Massachusetts cultivation and manufacturing facility. The request was approved by Massachusetts Cannabis Control Commission and set for eight additional grow rooms at its subsidiary, Commonwealth Alternative Care, Inc. The new operations are set to begin later this month. 

“We are pleased to announce the regulatory approval of the second phase of the planned expansion of our 117,000 sq ft cultivation and manufacturing facility in Taunton, Massachusetts,” said Gary Santo, president of TILT. “We now have more than 56,000 sq. ft. of cultivation space with the ability to add a second grow tier to each of the eight new rooms, pending regulatory approval. Once planted, these additional rooms will fortify the supply of premium flower for our Taunton dispensary, and together with our award-winning kitchen and state-of-the art extraction and processing lab, will support the production and distribution of high-quality, consistent products for our brand partners. As we continue to solidify CAC’s presence in the state, we remain committed to working with the CCC to achieve final state licenses permitting medical dispensary operations at our Brockton and Cambridge locations, as well as adult-use operations at both our Brockton and Taunton locations.”

 

Canopy Growth Launches CBD Beverage Brand

Canopy Growth Corporation has launched a CBD beverage brand. The drink is already a top seller in the category after a successful Canadian launch. The brand is called Quatreau, and it contains 20 milligrams of U.S. grown hemp-derived CBD. Quaetreau comes in four refreshing flavors:

  • Quatreau CBD-infused Sparkling Water in Cucumber + Mint
  • Quatreau CBD-infused Sparkling Water in Passionfruit + Guava
  • Quatreau CBD-infused Sparkling Water in Ginger + Lime
  • Quatreau CBD-infused Sparkling Water in Blueberry + Acai

“We have proven our beverage strategy in Canada, where we are currently the market share leader in CBD-infused ready-to-drink beverages,” said Canopy Growth President and Chief Product Officer Rade Kovacevic. “Beverages are fueling growth in the CBD category and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero sugar option.”


Kaitlin DomangueKaitlin DomangueMarch 2, 2021
high-tide-1200x514-1-scaled.jpg?fit=960%2C411&ssl=1

7min4810

Canadian cannabis retailer, High Tide Inc., (TSXV: HITI) (OTCQB: HITIF), announced their Q4 earnings yesterday for 2020. Despite the curveballs 2020 threw, High Tide landed on top, and reported a 118% increase in revenue bringing the total to $24.9 million for the fourth quarter. The revenue increase accounted for a 166% year-over-year growth, and brought the year’s total earnings to $83.3 million. 

High Tide’s revenue by geographic location

  • $20.6 million of total company revenue was earned in Canada in Q4
  • $4.1 million of total revenue was earned in the United States in Q4
  • $0.2 million of total revenue was internationally in Q4

 

  • $68.4 million of total revenue was earned in Canada in fiscal year 2020
  • $14.3 million of total revenue was earned in the United States in fiscal year 2020
  • $0.6 million of total revenue was earned internationally in fiscal year 2020

High Tide’s gross profit increased by 112%

The company’s gross profit increased by 112% to reach $8.7 million in the fourth quarter of 2020, and 172% to $30.8 million for the year. The company’s CEO and President, Raj Grover, said 2020 was their best year yet. “Despite the global slump in retail sales associated with the pandemic, and thanks to the tireless efforts of our team, we closed the year with approximately $8 million in Adjusted EBITDA making 2020 the best year in High Tide’s history,” said Raj Grover, President and Chief Executive Officer. High Tide’s Adjusted EBITDA for the fourth quarter was $3.6 million, and the $8 million represents the fiscal year ended October 31st, 2020. 

High Tide’s cash on hand

The company reported $7.5 million cash on hand as of October 31st, 2020, and a significant cash balance increase to approximately $38 million as of today. 

Revenue segments

  • $22.6 million in total revenue was generated by retail in Q4
  • $2.2 million in total revenue was generated by wholesale in Q4 
  • An immaterial amount by corporate was generated in Q4

 

  • $75 million in total revenue was generated by retail in fiscal year 2020
  • $7.9 million in total revenue was generated by wholesale in fiscal year 2020
  • $0.4 million in total revenue was generated by corporate in fiscal year 2020 

These figures compare to $24 million, $6.69 million, and $0.6 million, respectively, for the previous year.

More thoughts from High Tide’s CEO 

“We continued to run our operations tightly, ending the year off with the record levels of revenue and Adjusted EBITDA.,” said Grover. “We are excited about our trajectory in the United States and continue to prioritize and look for opportunities in that market. Our integrated value chain which includes Cannabis Bricks & Mortar stores, e-commerce platforms for consumption accessories and hemp derived CBD products, along with manufacturing and distribution of licensed and proprietary consumption accessories, experienced sizable growth on all fronts. We plan to continue to further strengthen our chain through organic growth and strategic acquisitions creating even more value for our shareholders.  Since the end of the fiscal year, we have already nearly doubled our size in Canada with the closing of the META Growth acquisition. For the fiscal first quarter of 2021 we expect to report revenue in the range of $37 million to $38 million.”

Operational highlights

In addition to monetary achievements, High Tide made some operational moves last year to set the company up for success in 2021 and beyond. 

  • Canna Cabana (High Tides retailer) opens location in tourist destination Banff, Alberta in August
  • META shareholders overwhelmingly approve High Tide’s acquisition of META Growth Corp. (META. V) in October 2020
  • Over 50% of the company’s brick-and-mortar revenue came from Cabana Club members, emphasizing the brand’s value 

Additional Events

  • High Tides entered a loan agreement for $6.75 million ending on December 31st, 2024 of an undrawn balance on a $20 million credit facility, which was obtained through the acquisition of META
  • Approximately $29 million worth of company debt was converted into common shares after October 31st, 2020
  • Company common shares moved up to the TSX Venture Exchange
  • The company submitted an initial application to be listed on the NASDAQ 
  • High Tides closed on an unsubscribed bought deal equity financing, gross proceeds $23 million 
  • All branded locations have remained operational throughout the COVID-19 crisis, despite difficult issues facing Canada. 

Kaitlin DomangueKaitlin DomangueFebruary 25, 2021
Daily-Hit-Header.png?fit=960%2C400&ssl=1

7min3330

It’s time for your Daily Hit of cannabis financial news for February 25th, 2021. 

On the Site

Should You Use CBD Gummies to Help Mental Health? 

There is plenty of evidence to show that CBD can have a profound impact on mental health. This article dives into some of the research and studies that exist include: 

  • Anti-inflammatory
  • Anxiety relief from CBD 
  • CBD’s interaction with serotonin receptors in the brain
  • And other additional pieces of research 

 

Innovative Industrial Stock Sells Off Despite Solid Earnings

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) released results for the fourth quarter and year ending December 31, 2020, after the market closed on Wednesday. The stock was pulling back in pre-market trading by over 6% to sell near $206 as investors were disappointed with the earnings. Innovative Industrial delivered a fourth-quarter FFO of $1.36 missed by $0.07 and the revenue of $37.09 million missed by $1.41 million despite increasing by 110%.

 

Valens Reiterate Guidance Despite Slight Drop in Sales

The Valens Company Inc. (OTCQX: VLNCF) reported its fourth quarter and fiscal year financial results for the period ended November 30, 2020. Valens reported gross revenue for the fourth fiscal quarter fell to $17.9 million from $18.5 million in the third quarter of 2020. The net loss increased to $16.6 million sequentially over the third quarter’s net loss of $3 million.

 

PharmaDrug Files For DMT To Be Used for Kidney Transplants

PharmaDrug Inc. (CSE: BUZZ) (OTC Pink: LMLLF) has filed for an application with the U.S. Food and Drug Administration to receive Orphan Drug Designation (“ODD”) for N,N-Dimethyltryptamine or DMT in the prevention of ischemia-reperfusion injury in patients undergoing kidney transplantation.

 

Indus Holdings Buys Lowell Herb for $39 Million

California-based Indus Holdings, Inc. (OTCQX: INDXF) is buying Lowell Herb Co. and Lowell Smokes in a deal valued at $39 million. The acquisition includes trademark brands, product portfolio, and production assets of Lowell from The Hacienda Group effective immediately. The company will change its name to Lowell Farms Inc.

 

Acreage Holdings Sells Florida Property for $60 Million

Acreage Holdings, Inc. (OTCQX: ACRDF, ACRHF) announced its subsidiary, High Street Capital Partners was selling Acreage Florida, Inc. to Red White and Bloom Brands, Inc.  (OTCQX: RWBYF) for $60 million. The deal also includes the sale of property in Sanderson, Florida. The stock was dropping over 6% to lately sell at $7.39.

In Other News

MJ Holdings, Inc. to Acquire Medical and Recreational Cultivation Licenses 

MJ Holdings, Inc. (OTC PINK: MJNE) has reached a point of being ready to purchase two cultivation licenses (recreational and medical) and two production licenses (recreational and medical) and transfer the appropriate license to proprietary land. 

“In consideration of $1.250M and 200,000 shares of our common stock (Purchase Price), we will soon fully control our own destiny as we have applied to transfer the cultivation licenses to our proprietary land: The Farm. We have arranged an amicable separation under our existing management agreement with Curaleaf/Acres and are developing our cultivation facility on The Farm for our own use. With the enormous Las Vegas tourism industry soon to be on the rebound, we are well positioned to meet or exceed our fair share of demand,” said Paris Balaouras, Founder and Chief Cultivation Officer of MJ Holdings, Inc. 

 

Cronos Group Earnings Preview for Q4 2020 

Cronos Group (OTC:CRON), is set to announce their earnings for the fourth quarter of 2020. The consensus EPS estimate is -$0.08, and the revenue estimate at $13.23 million. The company has beat estimates 75% of the time over the last year, and has beaten revenue estimates 25% of the time. 

 

Kalamazoo Mayor to Attend Ribbon Cutting Ceremony of Cookies Store 

Kalamazoo’s mayor, David Anderson, has confirmed his participation in a ribbon cutting ceremony for a Cookies retail location on February 26th. The event was announced by the company in a press release. 

Cookies is owned by California rapper and entrepreneur, Berner. 

“The Midwest is an important part of Cookies’ overall expansion plan, and our partnership with Gage Cannabis has been integral,” Cookies CEO Berner said in a news release. “We’ve seen tremendous demand from cannabis consumers in Michigan and the surrounding areas and look forward to continuing to serve them as our partnership grows with this second location.”


Kaitlin DomangueKaitlin DomangueFebruary 24, 2021
Daily-Hit-Header.png?fit=960%2C400&ssl=1

5min2450

It’s time for your Daily Hit of cannabis financial news for February 24th, 2021. 

On the Site 

Ardent Life: A Company Revolutionizing Cannabis Technology

Ardent Life Inc., was founded in 2015 by Shanel Lindsay. The Green Market Report is featuring  a series of Black-owned businesses for Black History Month, and Ardent Life is part of that. 

Lindsay developed the sublingual method of administering cannabis after years of fiddling with her dose. This administration route had never been introduced to the cannabis industry before, which led to Lindsay immediately protecting her concepts before other companies could grab hold of it. In 2014, G.W. Pharmaceuticals gave $100 million to the company to support FDA trials of the company’s sublingual sprays, Sativex and Epidiolex.

Besides her work with Ardent, Shanel is an attorney and activist for the cannabis industry, fighting for equity amongst the industry.

 

Michigan May Get Its Own Marijuana Stock Exchange

Cimone Casson is the owner of cannabis insurance brokerage firm Cannas Capital, Michigan Chapter President for Minorities 4 Medical Marijuana, and the driving force behind another initiative that is poised to push Michigan to the forefront of social equity. Casson’s objective is to create a local stock exchange, the Michigan Marijuana Market, that focuses on raising capital for minorities in local communities impacted by the War on Drugs. 

 

Former Eaze CEO Pleads Guilty in Bank Fraud Case

James Patterson, the former CEO of California cannabis delivery platform Eaze pleaded guilty to one count of conspiracy to commit bank fraud according to a report at Law360. The plan was a scheme to deceive banks into processing more than $100 million worth of credit and debit payments for marijuana purchases. The major banks and credit card companies like Visa (NASDAQ: V) and Mastercard (NYSE: MA) refuse to work with cannabis companies as the product is still federally illegal. So any transactions using these products or lying to banks about the nature of the transactions is illegal.

 

The Pros and Cons of CBD Joints

Pros:

  • Great flavor
  • Easy to assemble ahead of time
  • Higher bioavailability

Cons:

  • Potential danger to your health
  • Antisocial 

In Other News

Agrify Announces New Advisory Board

Vertical grow solutions company, Agrify (NASDAQ: AGFY), has announced the formation of its new Strategic Advisory Board. 

Rosie Mattio, Founder and Chief Executive Officer of MATTIO Communications, and Matthew Kressy, Founding Director of the MIT Integrated Design & Management (IDM) program, have both been appointed to serve as trusted advisors to the Company. The Advisory Board has been established to bring together a talented and accomplished group of outside leaders to provide strategic guidance and industry expertise on various aspects of Agrify’s business, including market opportunities, public relations, and hardware and software design and solutions.


Kaitlin DomangueKaitlin DomangueFebruary 18, 2021
Daily-Hit-Header.png?fit=960%2C400&ssl=1

6min2800

It’s time for your Daily Hit of cannabis financial news for February 18th, 2021. 

On the Site

Is Delta-8 THC Legal?

This guest submission explains that yes, delta-8 THC is legal and able to be obtained in the United States. Delta-8 THC seems to lack the intense psychoactive effects of its analog, Delta-9 THC. It gives a mild “high” but has stronger health and wellness benefits. Unlike the regular THC, Delta-8 THC’s benefits far outweigh its side effects, which are minimal at the least. 

 

Tax Court Rules Against Harborside in 280E Case

California-based cannabis company Harborside Inc.  (CSE: HBOR), (OTCQX: HBORF) has been fighting the IRS over tax payments related to IRC Section 280E, which

prohibits businesses engaged in the trafficking of controlled substances (including cannabis as specified in Schedule I of the FCSA) from deducting normal business expenses associated with the sale of cannabis.

The company announced that the United States Tax Court ruled in favor of the Commissioner of Internal Revenue with respect to Docket Nos. 12313-15,12353-15, and 15714-18 to disallow all of SJW’s deductions pursuant to I.R.C. sec. 280E for all the years at issue.

 

Tilt Holdings Forecasts Rising Revenue for Fourth Quarter 

TILT Holdings Inc. (OTCQX: TLLTF) reported its preliminary earnings for the fourth quarter ending December 31, 2020, and full-year outlook for 2021 after the market closed on Wednesday. Tilt said that the fourth-quarter revenue is projected to be between $42.2 million and $43.2 million versus last year’s revenue of $40.4 million for the same time period. That figure, however, includes its former subsidiary Blackbird, without that the revenue would be projected to be between $41.3 million and $42.3 million.

 

MindMed to Buy HealthMode in C$41 Million Deal

Psychedelic medicine biotech company MindMed (OTCQB: MMEDF) will acquire HealthMode, a digital medicine and therapeutics startup that uses Artificial Intelligence (AI)-enabled digital measurement to increase the precision and speed of clinical research and patient monitoring.

MindMed said it will acquire HealthMode through the issuance of 82,508 multiple voting shares of MindMed (equivalent to 8,250,836 subordinate voting shares which, at yesterday’s closing price of CAD $5.13, puts the value of HealthMode at approximately CAD $41,254,180) and the payment of approximately CAD $300,000 in cash.

 

MD Numbers, Inc: A Cannabis Company Focused on Sustainability & Equity

As part of Green Market Report’s month-long series highlighting Black cannabis owners, we featured MD Numbers; a Black-owned cannabis company with numerous brands under them in various disciplines of cannabis. The co-founders are also siblings, Marie Montmarquet and Allen Hackett have 31 combined years of cannabis experience. 

 

Tilray Delivers Solid Quarter As Revenue Rises 20% 

Tilray, Inc. (Nasdaq: TLRY) reported financial results for the full fiscal year and fourth quarter ended December 31, 2020 following the close of the market on Wednesday.

The company said that total revenue increased 20.5% to $56.6 million versus the fourth quarter of 2019.

In Other News

New Jersey Lifts 2019 Medical Marijuana Restriction

 

A New Jersey appellate court decided to lift the 2019 order that prevented the state from awarding 24 additional medical marijuana licenses. 

“The ruling today is a step in the right direction for the state of New Jersey to not only meet the demands of existing patients but to eventually increase supply to meet the demand of the adult-use market,” New Jersey cannabis attorney Rob DiPisa of Cole Schotz wrote in an email to Marijuana Business Daily.


Kaitlin DomangueKaitlin DomangueFebruary 16, 2021
job.jpg?fit=960%2C640&ssl=1

11min6021

321,000 Full-Time Cannabis Jobs in 2020

Leafly’s fifth annual cannabis jobs report showed the cannabis industry to support 321,000 full-time equivalent jobs in 2021! An incredible number for an amazing and highly-deserving industry. 

Cannabis jobs aren’t accurately reported to the Department of Labor because it’s federally illegal, so in partnership with Whitney Economics, Leafly has been filling that gap since 2017! The result is a goldmine of knowledge, and always filled with incredible cannabis job data. 

The 2021 report found that there are more legal cannabis industry employees in the United States than: 

  • Electrician engineers 
  • EMTS and paramedics 
  • Dentists (more than twice as many!)

The United States added 77,300 full-time jobs in the cannabis industry in 2020, despite the ravaging pandemic. This represents a 32% year-over-year job growth, which is absolutely phenomenal considering 2020 was the worst year for U.S. economic growth since World War II. 

Cannabis Job Breakdown by State

Medical marijuana has been legalized in 37 US states, and there’s an adult-use market in 15 states and Washington D.C. According to the report: 

  • There are more cannabis employees in Florida than plumbers 
  • Michigan employs more cannabis industry professionals than cops 
  • California employs more cannabis workers than bank tellers 

California 

  • Added 23,707 cannabis jobs in 2020 
  • Has 59,970 total cannabis jobs 
  • The state’s industry grew 80% from 2019 to 2020

Colorado 

  • Added 4,338 cannabis jobs in 2020 
  • Has 35,539 total jobs 
  • Executed $2.28 billion in cannabis sales in 2020

Florida

  • Added 14,981 jobs in 2020 
  • Has 31,444 total jobs 
  • Florida sales more cannabis than any other state besides California and Colorado, despite only being legal medically 

Oregon 

  • Added 687 jobs in 2020
  • Has 17,981 total jobs 
  • Did $1.1 billion in sales last year, putting the state at the $1 billion mark for the first time 

Washington 

  • Added 524 jobs in 2020 
  • Has 19,873 total jobs 
  • If cannabis was counted alongside WA’s other agricultural commodities (cherries, apples, etc.), it would rank in the top 10 in economic value 

Illinois 

  • Added 8,348 jobs in 2020 
  • Has 16,837 total jobs 
  • Chicago, a city with 1 million Black residents, still doesn’t have even one Black-owned dispensary 

Comparing the Cannabis Industry’s Growth to Other Industries 

If you’ve learned anything from reading this article, it’s that the cannabis industry is booming. Therefore, job creation is, too. 

In four years, the cannabis industry’s job growth has increased 161%, quickly beating predictions from other industries ten years from now. Leafly’s 2021 report found in ten years from now: 

  • Speech pathology will grow 25% 
  • Animal caretaking will grow 23% 
  • Data analysis will grow by 32% 
  • Home health aides will grow by 34% 
  • Solar power installation will grow by 51% 
  • Nurse practitioners will grow by 52% 
  • Wind turbine techs will grow by 61% 

Even the largest job growth, wind turbine techs, won’t achieve the same growth in 10 years as the cannabis industry already has in just four years! 

The COVID Effect: How Cannabis Businesses Thrived During the Pandemic 

When the coronavirus began to spread and reached other parts of the world, the cannabis industry was concerned (those of us at The Green Market Report included) that our space would take a massive hit. Most of us were bracing for impact, and waiting for the worst. 

Surprisingly, the glorious opposite happened (for most.) Unfortunately, all industries have lost some businesses due to the pandemic, but cannabis businesses were deemed essential pretty much everywhere. Cannabis retailers responded beautifully, and innovative responses included:  

  • Curbside pickup 
  • Delivery 
  • Limited customers inside once indoor service began again 

It’s also amazing considering many retailers, like MedMen, faced unmanageable losses when rioters stole and destroyed their storefront during last summer’s protests. Many retailers were forced to start over, yet the industry continued to boom. 

Cannabis employment also looks different during the days of COVID, as less employees are required and more people have to stay home for various COVID-related reasons. One business owner reported more staff turnover during 2020 than the last five years. 

Massachusetts retailers sold $700 million worth of cannabis products in 2020, compared to $400 million in 2019 – even with Gov. Charlie Baker’s statewide shutdown temporarily halted all retail sales in April. Cannabis stores in Massachusetts still posted a 75% annual sales gain over 2019, despite the shutdown. 

The report says: 

  • Cannabis consumers increased their monthly spend by 33% 
  • Sales increased at the beginning of March and continued to rise, then plateaued in April-May
  • There was a 71% increase in cannabis sales from 2019 to 2020
  • Americans bought $18.3 billion worth of cannabis products in 2020 

Black-Owned Cannabis Businesses Are Still Sparse 

A lack of diversity is an issue that has been plaguing the cannabis space since legalization began, and according to this year’s report – we still have much work to do. 

Very few states have public data relating to racial or gender diversity in the cannabis space, but Cannaclusive is doing just that. Cannaclusive’s database includes: 

  • 500 Black-owned cannabis businesses 
  • Black Americans only represent 1.2-1.7% of all cannabis company owners 

Some of the most troubling points for diversity in the cannabis industry: 

  • Illinois added 8,000 cannabis jobs last year. Not a single minority-owned business is a finalist for one of the new 75 store licenses expected to be issued in 2021
  • Only 1% of cannabis retail stores are Black-owned. This is three stores out of 260 across the state 

Though this data is concerning, privately funded equity and incubator programs are answering the call to action and making more funds available to minority business owners.

 

Leafly releases their job report at the beginning of each year, and can be found on their website when it’s released.


Kaitlin DomangueKaitlin DomangueFebruary 11, 2021
Daily-Hit-Header.png?fit=960%2C400&ssl=1

7min2550

It’s time for your Daily Hit of cannabis financial news for February 11th, 2021. 

On the Site

How CBD Products Work to Improve Your Help

This article talks about the benefits of CBD, and how regularly using it can improve your health. It goes into the endocannabinoid system, and how it can manage stress and anxiety, promote bone health, aid in epilepsy treatment, etc. 

GFive Cultivation Breaking Barriers, Giving Back

Green Market Report highlighted Larry Smith, the CEO and co-founder of GFive Cultivation. He’s the first African-American to have a medical cannabis facility in Clark County, Nevada. He is committed to empowering young men and women in his community and breaking the barriers that prevent others from participating in this booming cannabis industry.

Columbia Care Expects to Sell C$25 Million of Stock to One Investor

Columbia Care Inc. (OTCQX: CCHWF) has entered into an agreement with Canaccord Genuity Corp. to purchase for resale, on a bought deal private placement basis, 2,800,000 common shares at a price of C$9.00 per share for aggregate gross proceeds of C$25,200,000. It is expected that the offering will be primarily sold to one large institutional investor. The deal is expected to close on or about February 25, 2021. The net proceeds will be used for working capital and general corporate purposes.

In Other News 

Supreme

The Supreme Cannabis Company, Inc.  (OTCQX: SPRWF) announced its financial and operating results for the three months ended December 31, 2020. Overall net revenue increased 54% to $18.3 million in Q2 2021 from $11.9 million in Q1 2021. Recreational net revenue rose to $12.7 million, an increase of 70% quarter-over-quarter as a result of distribution gains, improved fulfilment and higher sales as the Company’s products continue to be well received by the recreational cannabis consumer. In particular, a 98% increase in sales volumes and a 3% higher average selling price per gram from the Company’s dried flower and pre-rolls drove the increased recreational net revenue. The company reported a net loss of $7.9 million.

Beena Goldenberg, President and CEO of Supreme Cannabis, said, “Supreme Cannabis continued to execute on its strategy of accelerating revenue and controlling our costs in the second quarter of fiscal 2021, which resulted in record revenue and EBITDA performance. Consolidated net revenue grew by 54% compared to Q1 to $18.3 million, while recreational net revenue – which is a significant area of focus for the Company – grew by 70% compared to last quarter to $12.7 million. Our revenue growth was attributable to distribution gains, improved fulfilment and an overall strengthening of our internal processes. We continued to exercise disciplined cost control across the business, resulting in Supreme Cannabis generating positive Adjusted EBITDA of $3.6 million, up from $0.3 million in the first quarter of fiscal 2021.”

Wholesale net revenue, which includes the Company’s sales in the international medical cannabis segment, in Q2 2021 was $5.6 million, up 28% quarter-over-quarter, driven by a 14% increase in average selling price per gram and a larger contribution from international flower sales volumes.

 

Short Sellers

Short Sellers Have Lost $4.3B in Cannabis Stocks in 2021 

MSN reported that, as of Wednesday, these five cannabis stocks are in the largest short positions, with Tilray’s stock being sent 150% higher last week after a short squeeze: 

  • Canopy Growth Corp. (NASDAQ: CGC): $1.49 billion in short interest 
  • Tilray (NASDAQ: TILRY): $1.33 billion in short interest 
  • Aphria (NASDAQ: APHA): $402.6 million in short interest 
  • GW Pharmaceuticals (NASDAQ: GWPH): $401 million in short interest 
  • Aurora Cannabis (NYSE: ACB): $385.7 million in short interest 

Hempire Direct Launches Mobile App for Hemp & Delta 8

Hempire Direct released a first-of-its kind mobile app serving as an online marketplace for smokable flower, edibles, vape cartridges, and other hemp-derived products. The app will also have Delta 8 products, which is currently trending in the hemp-derived product space. 

Through Hempire Direct’s mobile app, farmers and brand manufacturers can list cannabis products on their app. It’s essentially an Amazon for hemp products.


Kaitlin DomangueKaitlin DomangueFebruary 10, 2021
law.jpg?fit=960%2C640&ssl=1

5min4580

On February 5th, state lawmakers voted to legalize cannabis in Virginia and establish a recreational market. Both chambers’ initiative would legalize possession of an ounce of marijuana or less, and begin the process of expunging certain cannabis-related misdemeanors on July 1st. Retail sales are predicted to start in 2024, per the plans of both the House and Senate.  

Virginia already has a medical marijuana program, but it’s limited compared to most states. Even so, the medical program is expected to be valued at $50 million in sales by 2024, and the adult-use market is poised to grow even bigger. 

Here’s what you need to know about the newly introduced adult-use legislation in Virginia: 

The vote passed through the Virginia General Assembly on February 5th 

Both chambers passed the bill to legalize cannabis for adult use at the beginning of February. The bill was introduced by Senator Adam Ebbin, who said “I think that Virginia is on a path to an equitable legalization plan for marijuana. There have been a few bumps, but I’m hopeful that we’ll have a polished bill we can agree upon in the next few weeks,” said Sen. Adam Ebbin.

The House passed the bill 55-42 

House Democrats were in favor of the bill, while Republicans were opposing it. The House’s version of the bill would maintain all cannabis criminal penalties until January 1st, 2024, when the first adult-use retail sale is set to take place. 

The Senate advanced its modified version 23-15

One of the Senate’s changes include allowing Virginia jurisdictions to opt out of retail stores, and will require a second vote by state lawmakers next year. The House and Senate need to agree on these changes before Gov. Ralph Northam signs the proposal. The governor has already voiced his support for the bill, and is expected to sign it. 

The biggest portion of tax revenue from cannabis sales will be invested in at-risk children

One of the most exciting things about both versions of the bill is where the tax revenue is going. The biggest portion of the revenue is set to fund Pre-K for at-risk children in the state of Virginia. “Reforming our marijuana laws is one way to ensure that Virginia is a more just state that works better for everyone. It also will eventually bring in tax revenue that can be used to further make sure we are providing equitable access to opportunity. For example, just half of the potential annual revenue could pay for two years of quality Pre-K to every one of Virginia’s most vulnerable three- and four-year-olds—children who deserve the best start in life,” said Gov. Ralph Northam. 

One of the bill’s chief patrons is a Black woman 

Louise Lucas has been representing Virginia’s 18th district since 1992. She is one of the chief patrons of this historical bill, along with fellow Virginia Senator Adam Ebbin. She is the floor leader of her Democrat colleagues in the state Senate, and because Democrats won a majority of seats in the 2019 Virginia senate election, Lucas succeeded Republican Stephen Newman as the Virgina Senate’s President pro tempore. This makes her the first woman and the first African-American to hold this position. 

The future of Virginia’s adult-use market

According to a recent study conducted by the Joint Legislative Audit and Review Commission, legalizing and taxing commercial cannabis sales in Virginia could generate between $154 and $308 million by the fifth year of sales. 

The legalization will hopefully bring much-needed social change, too. The study also found that Black Virginians makeup a disproportionately high number of cannabis-related offenses, and with this bill – that can be resolved. 


Kaitlin DomangueKaitlin DomangueFebruary 8, 2021
Daily-Hit-Header.png?fit=960%2C400&ssl=1

2min1890

It’s time for your Daily Hit of cannabis financial news for February 8th, 2021. 

On the Site

Are High-CBD Hemp Flowers The Next Big Thing in Cannabis? 

This article explains what CBD hemp flowers are, and their legality. It also dives into the benefits of CBD hemp flower, and concludes that it’s here to stay in the cannabis scene. 

 

Global Hemp Acquires Water Rights With Plans for Hemp Building Materials

Global Hemp Group Inc.  ( OTC:GBHPF ) signed a Definitive Agreement with Prescient Strategies Group LLC to acquire all of its Western Sierra Resource Corporation (OTC: WSRC) Preferred A Class Share holdings in a private, third party transaction. The deal is expected to close on or about February 9, 2021 upon fulfillment of certain conditions including:

– WSRC restructuring certain unsecured debt prior to the issuance of the GHG Prefs;
– GHG providing the necessary initial payments to complete the transaction and other Debt Restructuring (completed).

In Other News

MJBiz Daily Reports Concentrate Sales Up 40% 

The cannabis news outlet reported cannabis concentrate sales were up 40% in 2020, far outpacing previous numbers. Sales hit $567 million in 2019, and reached $797 million in 2020. The data was first released by Headset, a cannabis data analytics firm based in Seattle. 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 1 day

If you missed any news this week, then give a quick watch

@GreenMarketRpt – 1 day

We did it! We made it to Friday. FWIW the mercer story broke long after we shot and edited this weekly recap.

Back to Top

You have Successfully Subscribed!