Happy New Year everyone. We took a small break as the news cycle died down at the end of 2021, but we are back and ready to crush 2022.
This week Emerald Holding (NYSE:EEX) said it is buying MJBiz in a deal valued at $120 million. In 2021, MJBiz’s revenues were approximately $27 million and its EBITDA was $13.7 million. MJBizCon is a top trade show in the cannabis industry having featured more than 1,200 exhibiting companies. While the company boasted over 18,000 paid registrations, at the October 2021 event, it was a big drop from the company’s last pre-pandemic event.
The Scotts Miracle-Gro Company (NYSE: SMG) announced two acquisitions, but at the same time warned that sales in its hydroponic division Hawthorne were expected to drop by 40% for the fiscal first quarter that ends at the end of January. Scotts said the decline in sales was caused by a slowdown in the cannabis market as well as supply chain disruptions that have delayed the sale of certain product lines.
MedMen (OTCQX: MMNFF) is still refusing to close its agreed-upon deal with Ascend Wellness (CSE: AAWH.U) (OTCQX: AAWH) for the properties in New York. The investment, which was agreed upon in March 2021, was dependent upon New York State’s approval, which the Office of Cannabis Management of the Cannabis Control Board of the State of New York gave on December 16, 2021. MedMen is trying to kill the deal saying it didn’t get NY’s approval in time, but Ascend is saying that isn’t the case. Ascend is also accusing MedMen of not remaining compliant with NY state’s cannabis regulations.
Headset is predicting in a new report that the total annual U. S. cannabis market has the potential to reach $45.8 billion by 2025. Despite its current challenges, California is expected to remain the number one market. Headset is projecting that the state’s market will reach $7.7 billion in just three years. Even though New York is a medical-only state at this time, adult-use sales could begin in 2023. Headset is forecasting the market to become the third-largest in the country with sales of $2.86 billion.
And finally, now that the holiday season has wrapped up, various data companies have finally had a chance to measure the results. Headset said that its data showed that Canada saw a rise in sales of more than 26% while the US saw an increase of 17% during the holiday month. Springbig reported that starting from a week before Christmas and going into New Year’s Day, it saw (excluding Christmas day) $276 million in total sales with a daily average gross of $20.82mm. This year the data providers said that sales were spread out over the month versus just right at the specific holiday date.