The Daily Hit is a recap of the top financial news stories for May 3, 2023.
On the Site
Maryland Rec Market Primed for July Launch With Governor’s Signature
Maryland will officially kick off adult-use cannabis sales on July 1 now that Gov. Wes Moore signed a pair of implementation bills into law on Wednesday. The measures, Senate Bill 516 and House Bill 556, will let Maryland’s 102 existing medical cannabis companies begin recreational sales in July, with additional rounds of business licensing to come in 2024. Read more here.
Washington State to Award Unused Cannabis Licenses for Social Equity Program
In an effort to promote diversity in Washington’s cannabis industry, Gov. Jay Inslee signed an amendment into law on Monday authorizing the state’s Liquor and Cannabis Board to award 46 previously forfeited or never used cannabis licenses to social equity applicants this year. Read more here.
Illinois Collected Half a Billion in Cannabis Taxes in 2022
Illinois gets more tax revenue from marijuana than any state but California, pulling in $562 million last year. Michigan, which has a lower tax rate and pot prices but higher overall sales than Illinois, took in $326 million in taxes to rank No. 4, according to data compiled by the Marijuana Policy Project. Read more here.
Regulated Cannabis Collateral Creates Challenges in Compressed Industry
Thanks to lingering federal prohibition, restricted access to banking, biased taxation policies, a pandemic, “unlimited license” jurisdictions, a flourishing grey market, and continuing social and political stigmas, legalized cannabis has also produced many losses and is certain to produce many more. Read more here.
Green Thumb Posts $9M Profit, $249M in Revenue for First Quarter
Chicago-based Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) posted a $9.1 million profit for the first three months of 2023 against $249 million in revenue, the company reported Wednesday. The slim profit margin follows a $12 million year in 2022 for GTI, which continues to be one of the few multistate operators in cannabis to be announcing profits instead of losses. Read more here.
• Scotts Miracle-Gro Reports Hawthorne Sales Fall 54%
• Turning Point Revenues Rise Slightly As Zig-Zag Sales Dip
In Other News
Additional penalties and shutting down businesses will be used to crack down on illicit cannabis sales in New York under an agreement reached in the $229 billion state budget. The spending plan, approved on Tuesday, included the provisions as the state’s marketplace for legal cannabis businesses is trying to get off the ground. Read more here.
NBA players will continue to be blocked from promoting cannabis companies or launching their own brands till at least 2029, according to a new NBA agreement signed last week. That contradicts an earlier report from April — following a verbal agreement between the league and players — that claimed the league was set to allow players to launch their own legal pot companies. Read more here.