cannabis Archives - Green Market Report

Debra BorchardtDecember 7, 2021
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Wholesale cannabis prices have fallen this year and the impact was felt by several companies and in particular – those in California. Cannabis Benchmarks data shows that California’s Spot prices have been on a freefall since June. Cannabis Benchmarks said that prices have dropped by as much as 30% this year. Plus, as outdoor harvests have ended that product is hitting dispensary shelves, which could cause prices to go even lower. 

Leafly’s Cannabis Harvest Report said that in the 11 legal adult-use US states, cannabis supports 13,042 licensed farms that annually harvest 2,278 metric tons of marijuana or more than 5 million pounds of weed. The wholesale cannabis crop brings in $6.2 billion annually, ranking it as the fifth most valuable crop in the United States. Only corn, soybeans, hay, and wheat bring in more money to American farmers. The report also stated that legal cannabis is the single most valuable agricultural crop in Alaska, Colorado, Massachusetts, Nevada, and Oregon, but remains completely uncounted and ignored by state agriculture officials. 

Alex Feldman General Manager, Insights & Marketing Services at LeafLink said, “California prices are still depressed as of early December due to a number of factors. Growing conditions were more favorable this year compared to last, new entrants came into the market anticipating a post-pandemic recovery, and there is continued downward pressure from the black market.” 

Too Much Marijuana

Although demand for freshly-harvested material could help steady price initially, as has been the case in some previous years, the rumblings in California have suggested that an early harvest price bump may not be in the cards this year due to inventory hangover from 2020 and this summer’s light-deprivation crops swamping the market.

Jonathan Rubin, Founder and CEO of Cannabis Benchmarks said that in addition to California, Oregon and Colorado were also seeing a significant drop in wholesale flower prices. “For the West Coast states, there was a significant amount of inventory that remained unsold deep into this year from a big outdoor harvest in 2020. In California, it seems that 2020 and 2021’s harvests were similarly robust. Additionally, cultivators that had spent previous years getting through the state’s stringent licensing process came online and started producing this year, including larger light deprivation operations outside of northern California, and generated a surge of supply beginning this summer, which caused prices to start to fall ahead of the autumn crop.”

In addition to California, Rubin said that in Oregon it seems that growers took record-breaking demand during the first summer of the Covid pandemic as a signal to ramp up production. “Even before the fall harvest, from roughly January through August this year, indoor and light deprivation growers were bringing in harvests that were a good bit larger than in 2020. Regarding the fall outdoor harvest this year, recent data from Oregon shows that outdoor growers have harvested about 55% more wet weight than they did in 2020, a huge increase in output,” he added. With regards to Colorado Rubin said that cultivators also ramped up production in 2020. “Data from the state MED shows that licensed growers in Colorado produced 40% more flower in 2020 than was purchased by adult-use consumers and medical patients, leaving a large inventory overhang,” said Rubin.

Low Prices Hurting Companies

Cannabis companies began to inform investors about the impact of the low prices during the last earnings season. Some were pretty upfront about the situation, while others just dropped hints. 

TPCO also known as The Parent Company (OTC: GRAMF) was one of the companies to deliver sobering news to investors. It reported that sales in the third quarter dropped by 26.7 % from the second-quarter revenue of approximately $54.2 million and blamed the decline on a decrease in bulk wholesale flower and bulk wholesale oil prices during the third quarter.  Wholesale revenue fell to $26.9 million versus $42.3 million in the second quarter and this was attributed to the decrease in whole flower pricing during the quarter. TPCO said that the charge was based on the softening of the California cannabis market. The company also insisted that the challenges it faced were not unique and that the entire California market was experiencing these issues, however, few other companies announced taking a $570 million charge during the quarter. 

Similarly, Harborside (OTC: HBORF) said it was withdrawing its previous revenue guidance for 2021. A variety of reasons were given including a decline in wholesale pricing for bulk products in the California market and the beginning of a commoditization decrease in wholesale revenues as a result of a decline in wholesale pricing for bulk products in the California market. Harborside also said that the California retail market was experiencing a softening in consumer demand. Operationally, the company said it implemented a change in its harvest procedures which delayed flower production in the third quarter of 2021 to allow for the adoption of a perpetual harvest schedule beginning in the fourth quarter. 

Glass House Brands (OTC: GLASF) CEO Kyle Kazan said during its recent earnings announcement that the California wholesale market faced considerable pricing challenges, as a result of overproduction in the third quarter. “While we expect the weakness in pricing to persist in the near term, we have proven the strength of our efficient operating model and the ability of our team to navigate a rapidly changing industry,” he said. The company reported that wholesale biomass revenue fell 18% despite a more than doubling of unit volume sales as flower wholesale prices fell by 48%, negatively impacting revenue by $4.1 million. Glass House also said it no longer expects to achieve the 2021 and 2022 revenue and profitability targets it had previously announced. The company now expects fourth-quarter revenues to be flat to down slightly compared to the third quarter in 2021 revenues of $17.2M. Kazan seemed to take the challenge in stride saying, “In Q3, our revenue (and that of everyone else of size in our market), took a hit from the significant drop in California’s wholesale flower pricing, and we think the difficult pricing environment will stick around for a while. “

Columbia Care (OTC: CCHWF) opted to just drop hints saying during its earnings announcement that there were some “wholesale pricing dynamics in some markets, such as California and Pennsylvania, and competitive market share dynamics in Florida.” After reading the other company comments, Col-Care’s soft pedal is really downplaying the situation. 

Slowing Sales

Of course, no one wants to suggest that sales could be maturing in some states. Rubin also said Cannabis Benchmarks noted that the expanded production coincided with slowing sales after the initial pandemic boom in 2020. “Beginning this spring and summer, sales began to plateau and then began to decline in late summer, continuing into the autumn and early winter. So in contrast to 2020 when demand was spiking and sales were breaking records in many legal cannabis markets, that has slowed in the second half of 2021 and recent month’s sales in the states under discussion are down year-on-year.” That statement agrees with Harborside’s assessment. 

Higher Energy Prices

Not only are these companies facing slowing sales, too much inventory, and falling prices, but they are also getting squeezed by higher energy costs, Granted if you’re an outside grower in California, you likely encounter water pressures. The recent Consumer Price Index (CPI) for all items jumped 0.9% in October and there were notable increases in the energy and energy services (utilities) sectors. Energy prices rose 4.8% in October with gasoline up 6.1%, fuel oil up 12.3%, and electricity up 1.8% on the month.

Indoor growers rely heavily on electricity to run lights and massive HVAC systems. They are known to be energy hogs. Over the past 12 months, the CPI reports that overall energy prices have risen 30%, with energy commodities, gasoline, and fuel oil, up 49.6% and 59.1%, respectively. Energy services (utilities) are up 11.2% year-on-year. 

In Closing

The question will be who can weather this storm of low prices, high energy costs, and slowing demand in legal dispensaries? LeafLink’s Feldman noted, “We’ve seen wholesale bulk flower pricing declines through October in key states including Michigan, Oregon, Colorado, and Arizona, but are seeing the trend improve as early December average prices in three of the four states are increasing, with the exception of Colorado.” So there could be light at the end of the tunnel. 

However, some cannabis industry vultures say they are already circling to look for those smaller players who are in distress and don’t have the reserves to ride this out. The larger companies can cut costs in the challenging states while relying on sales in states where wholesale prices have stayed steady. These dynamics are just part of the overall portfolio in a larger company. The California-only companies will see the crushing need for diversification. 

Kazan concluded, “To us, that’s not all bad news — the best strategy for weathering commoditization is producing the highest quality product at the lowest cost, and that’s basically a description of Glass House Brands’ strategy. In other words, we’re ready. Price compression is expected in every evolving industry and it makes strong companies stronger, though it unfortunately also removes others from the playing field. We’ve been preparing for this for a long time, and we think these market conditions will see the best-in-class companies thrive.


StaffNovember 29, 2021
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Supernova Women led by veteran Amber Senter has decided it has had enough. The group is organizing a press conference to address a rash of robberies against cannabis businesses in Oakland CA. During the week of November 15th over 15 licensed cannabis businesses in Oakland were broken into, vandalized, and robbed. This is believed to be a coordinated effort involving many individuals and over 100 cars. Supernova said that all cannabis business license types were affected: cultivation, manufacturing, distribution, and retail (delivery and storefronts). Cumulatively, these small and mostly Equity-licensed businesses are now faced with over $5 million worth of losses.

J. Henry Halston Jr., Co-Founder of the cannabis brand, James Henry says, “This is just so heartbreaking and stomach-turning. We employ 14 people and we have been trying to grow our business since we first started in 2017. The damage and stolen goods represent significant losses that we have to find a way to cover. This includes local and state taxes on the inventory that has been stolen. This one might be too much for us to overcome.”

The press conference will be held at 12 pm on Monday, November 29, 2021, in front of Oakland City Hall at 1 Frank H. Ogawa Plaza. Several leaders in the cannabis industry will address the incidents, and how such events impact licensed cannabis businesses aiming for sustainability in the highly complex legal market. Speakers include Kristi Palmer, Co-Founder and COO of
Kiva Confections, Raeven Duckett, CEO and Founder of Text Johnnie, and Chaney Turner, Chair of the Oakland Cannabis Regulatory Commission.

Amber E. Senter, Co-Founder and Chairman of Supernova Women adds, “The cannabis industry needs tax relief. Cannabis Equity businesses in particular, need more money and resources. Small businesses and small farmers need help. Piling on and increasing taxes and now the threat of robberies and violence is proving to be unbearable for most cannabis operators. When we are faced with targeted attacks, the effects are magnified. Our communities do not have the runway for robberies and tragedies of this kind. We need more protection, we need more money for security so that we can protect ourselves.”

The cannabis community is also upset because of a similar recent break-in at the luxury store Louis Vuitton in San Francisco’s tony Union Square, which captured a great deal of media attention. Some arrests have been made according to the district attorney’s office. The city has faced a rash of flash-mob-style robberies in various stores. Large groups of shoplifters either invade a store near closing time and overwhelm the employees or break in after-hours with cars outside waiting to transport the stolen goods.

This gathering of longtime cannabis advocates is mobilizing to shed light on the issue of security, cannabis tax amnesty, and small business policy. In a year where the pandemic and global logistics has disrupted business growth and sustainability, additional robberies mark another significant barrier.


StaffNovember 29, 2021
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Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) announced that it is leaving the cannabis industry and pivoting to a pharmaceutical development focus. Emerald said it is looking for buyers for its cannabis assets to further strengthen its already strong capital position. The company also said that it plans significant cost cuts to decrease its monthly net burn. In addition to that, Emerald Health reported that its President and CEO Riaz Bandali was leaving the company at the end of December. The company had begun to see an increase in revenues, but the net losses continued to outweigh the progress made on that front.

“Our management team and staff have shown exemplary commitment and effort in advancing Emerald’s cannabis business, but in a market with a very large number of cannabis operating licenses, increasing competition, and declining retail prices, the path to achieving profitability and increasing shareholder value has been very challenging,” said Jim Heppell, Chairman of Emerald’s Board of Directors. “Instead of committing additional capital and effort to focus on this very challenging and saturated market, the Board has decided that Emerald shareholders would be better served by the company exiting the recreational and medical cannabis business and pivoting into pharmaceutical development. We will now set out on a new business path that we believe has much greater potential to increase shareholder value.”

Emerald will file its third-quarter financial results on Monday, November 29Emerald said it plans to maximize its cash position and seek business opportunities in pharmaceutical development where the Board of Emerald has significant expertise. Any such acquisitions or dispositions are subject to regulatory approval and may be subject to shareholder approval.

“Riaz originally committed to take Emerald through a restructuring to achieve financial stability, and over the past two years he has been successful in repositioning Emerald, restructuring its balance sheet, and maximizing its cash position. Having reached a logical point with that effort, he has been planning to pursue new opportunities. We appreciate what Riaz has done for Emerald, thank him for his commitment, skills and effort, and wish him well,” added Mr. Heppell. “A successor to Riaz will be named prior to year-end.”

The company has agreed to retain Vantage Point Advisors to assist it in identifying potential acquisition/merger candidates involved in pharmaceutical development and to carry out due diligence on selected candidates. Vantage Point Advisors is an independent, arm’s-length business valuation firm with offices in New York, Los Angeles, San Diego, Portland, Seattle, and Dallas-Fort Worth.


Kaitlin DomangueNovember 3, 2021
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Cannabis is the fifth most valuable crop in the United States, effectively beating cotton. 

Farmers grew $6.175 billion worth of cannabis last year. That’s enough to fill 57 Olympic-sized swimming pools. Or, you can fill more than 11,000 dump trucks, stretching more than 36 miles. And that’s only across 11 adult-use states, not even including medical marijuana! 

With a crop this huge, you’d expect more data to be collected. The USDA Research Service keeps track of all non-cannabis crops, but they don’t account for cannabis produced in legal states because it’s illegal at the federal level. 

That’s why Leafly is stepping in to try and keep track of what’s being grown in the United States. Their new Cannabis Harvest Report for 2021 proves just how valuable American cannabis is to consumers and farmers alike. Leafly does the same thing with cannabis jobs, which are not tracked by the Department of Labor. 

Quick Data for the United States

  • This report analyzes 13,042 cannabis farms across 11 adult-use states. All of the states in the report have an active recreational program and operational retail stores.
  • Cannabis’ value in the United States is beating cotton, rice and peanuts. Cotton was worth $4.7 billion in America last year.
  • Corn, the nation’s leading crop, was valued at a whopping $61 billion last year. Corn, soybeans, hay, and wheat are the four crops that beat cannabis in value.
  • Cannabis is the #1 most valuable crop in Alaska, Colorado, Massachusetts, Nevada, and Oregon. 
  • Cannabis is currently worth between $500-$3,000 per wholesale pound across the United States. 

Alaska

  • The cannabis crop is worth more than twice as much as all other agricultural products combined in Alaska, including livestock and crops. 
  • Alaska’s 356 licensed cannabis farms produced 21 metric tons of cannabis during the fiscal year ending June 2021, which was worth $104 million wholesale.
  • Hay, Alaska’s second most valuable crop, generated $9 million annually during the last fiscal year. 

California

  • There’s an estimated seven cannabis farm licenses for every adult-use store in California, creating a lopsided cannabis market in the state. There’s more product than there are stores to sell it. 
  • California harvested 514 metric tons of cannabis last year, yielding a wholesale crop of $1.66 billion. Big numbers, but Colorado farmers are growing more cannabis than California farmers and bringing in approximately the same amount of money.

Colorado 

  • Colorado farmers produced an estimated 627 metric tons of cannabis in 2020, according to the Colorado Enforcement Division’s 2020 year-end report
  • Colorado has 1,245 cannabis farm licenses.
  • Colorado’s cannabis was valued at $1.03 billion last year.

Oregon

  • Oregon has an estimated 1,319 cannabis farm licenses, which produced 344 metric tons of cannabis last year.
  • The crop was valued at $602 million last year.
  • It’s the most valuable crop in Oregon, beating hay, wheat, potatoes, and cherries.

What’s a pound worth? 

Leafly found that using Nevada’s rules set forth by state regulators to be the most clear-cut way to break down just how much a pound is worth in the United States. 

Nevada taxes cannabis farmers according to a pre-set “Fair Market Value at Wholesale.” Flower is $2,398/lb, small bud is $1,696/lb, flower approved for extraction is $568, trim approved for extraction is $546, trim is $550, wet whole plant is $297, and immature plants are $51. Leafly rounded up and adapted Nevada’s numbers to create a per-pound formula. Every pound of dry, harvested cannabis yields: 

Flower, ½ pound: $2,400 x ½ = $1,200 

Smalls, ¼ pound: $1,700 x ¼ = $425 

Trim, ¼ pound: $550 x ¼ = $138 

Each harvested dry pound of cannabis equals $1,763 of wholesale crop value. 

Let’s treat cannabis farmers like other farmers

Cannabis farmers did not receive any of the $35 billion in emergency pandemic aid to American farmers in 2020, nor do they get to claim any of the $10 billion already given in usual farm subsidies, despite generating billions of dollars in legal revenue to U.S. states each year. 

  • There’s an entire council dedicated to iceberg lettuce in Arizona, but no such council or research group exists for cannabis, which is Arizona’s second most valuable crop generating $360 million in revenue each year.
  • Strawberry farmers pay no cultivation tax in California, unlike cannabis farmers who pay $9.65 per ounce just to cultivate. 
  • 19 towns have banned cannabis farming in New Jersey, including processing and retail. 

Leafly’s annual reports continue to shed light on the dollar value cannabis brings to state governments and communities, while simultaneously not being awarded the same benefits as other farmers in the United States. 


StaffOctober 27, 2021
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It’s time for your Daily Hit of cannabis financial news for October 27, 2021.

On The Site

Delta 8

Delta-8, a psychoactive compound similar in effect to delta-9 (which is what most people are talking about when they refer to THC), has been slipping through legislative loopholes around the country, including in strictly anti-recreational states like South Carolina, Louisiana, and Oklahoma. Even in states where recreational use is legal, delta-8 products are not held to the same legal requirements as delta-9. Though delta-8 has a slightly different chemical structure that supposedly makes it less potent than delta-9, an independent study commissioned by CBD Oracle Lab analyzed 51 delta-8 THC products and found that 76% of them contained illegal levels of delta-9 THC. How illegal? In at least one case, a staggering 7700% over the legal delta-9 limit. The average amount of delta-9 THC in all products tested by CBD Oracle Labs was 6.6%, 22 times higher than the federally legal limit.

Nevada

The state of Nevada has joined the billion-dollar bud club as the Nevada Cannabis Compliance Board (CCB) and the Nevada Department of Taxation (DoT) released figures showing more than $1 billion in taxable sales reported by Nevada’s legal cannabis industry over a 12-month period. The agencies noted that during the Fiscal Year 2021 (July 1, 2020 – June 30, 2021), licensed adult-use cannabis retail stores and medical dispensaries generated $1,003,467,655 in taxable sales. Th groups stated that this is an increase of more than $318 million versus the $685 million in taxable sales from the fiscal year 2020. The majority of sales took place in Clark County and unincorporated cities in Southern Nevada.

In Other News

Tyson

Legendary boxer, entrepreneur and icon Mike Tyson is reentering the world of commercial cannabis with the launch of Tyson 2.0, a new company to bring to market high-quality, Tyson-branded cannabis products available at multiple price points. Led by cannabis industry leaders, Adam Wilks and Chad Bronstein, Tyson 2.0 will provide retailers across the country with a suite of products designed to reach Mike Tyson’s national audience.

Organic

Two California cannabis farms have pioneered a new milestone in cannabis, and are now certified as the first “comparable-to-organic” cannabis farms in the state, as well as in the United States, by CCOF (California Certified Organic Farmers). OCal is a new certification program through the California Dept. of Food and Ag (CDFA). The certification was awarded to well-respected legacy farmer Sensiboldt Organics out of Humboldt County, and The Highland Canopy at Sonoma Hills Farm, a new premium craft cannabis farm and culinary garden located in Sonoma County.  The first cannabis certification program of its kind in the U.S., OCal’s standards, certification process, and regulations mirror almost exactly those of the USDA’s National Organics Program (NOP), ensuring consumers that cannabis products bearing the OCal seal have met the consistent, uniform standards comparable to NOP.  

 


Julie AitchesonSeptember 30, 2021
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You may have heard of “functional fitness” (which trains the body for activities performed in daily life) and  “functional nutrition” (a philosophy that promotes the use of food as medicine to prevent and alleviate diet and lifestyle-related diseases), but have you heard of “functional mushrooms”? If you’ve been down the aisle of a Whole Foods in the last few years, you undoubtedly have, but in case you haven’t, functional mushrooms include strains like Lion’s Mane, Cordyceps, and Chaga that aren’t only a food source but have beneficial properties that can positively impact health. These multitasking mushrooms have been showing up everywhere from coffee to candy bars, and while initially, they were giving cannabis a run for its money as the latest wellness trend, many companies are now blending THC or CBD and medicinal mushrooms to create “super” supplements, edibles, and other products to tempt the health-conscious consumer.

Cookies, an international cannabis brand, just launched Caps by Cookies THC, which is a three-in-one capsule formulation that blends non-psilocybin organic medicinal mushrooms and potent cannabis compounds. The mushrooms for Cookies’ formulation, which are high in beta-glucans, ergosterol, full-spectrum and grown to maturity, are provided by mushroom extract manufacturer Nammex and encapsulated by Blue River

But Cookies isn’t the only company marrying mushrooms with cannabis. TerraVita now offers two formulations, Relax CBD capsules and Shroom capsules, which blend mushrooms with CBD. TerraVita’s Shrooms bled contains Reishi, Cordyceps, and Lion’s Mane in a formula geared towards fortifying the immune system, relieving stress, and boosting cognitive function, while the Relax formula combines Reishi with the ayurvedic herb Ashwagandha, GABA, and L-Theanine to calm and restore.

Pantry’s Good Day Bites are getting attention for their line of superfood bites which contain 5 milligrams 1:1 THC:CBD as well as adaptogens and functional mushrooms. Pantry solicited the culinary expertise of nutritionists, doctors, and Michelin star chef Michael Magliano to come up with their line of medicinal treats. The line also includes Nite Bites and Cacao Keto Bites, which contain mushrooms, adaptogens, and cannabinoids like THC, CBD, and CBN. Pantry’s website has a dosage calculator to help customers figure out how much of these dime-sized chocolates to consume in order to achieve the desired quantity of “good vibes”.

 Buddha Teas, HempWorks, and 7 Wonders Mushrooms are also recruiting functional mushrooms to the cause of optimal health, with more companies rallying to the trend. Consumers can expect to see more products that celebrate the synergy of cannabis and functional mushrooms, as scientists hustle to provide the research to keep up with (and substantiate) the combination’s growing popularity. 


Kaitlin DomangueJuly 28, 2021
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Lollapalooza was cancelled last year due to the COVID-19 pandemic, but the famous music festival is back at Grant Park this year, starting tomorrow and ending on Sunday. Not only is this the festival’s first post-COVID comeback, after being canceled last year, but also the decades-old event’s first run since Illinois’ adult cannabis market took off in 2020. 

Chicago cannabis sales expected to increase as Lollapalooza kicks off tomorrow 

According to cannabis market research firm, BDSA, out-of-state travelers coming to Lollapalooza is expected to boost dispensary sales in Chicago. 

If you’re not familiar with the event, we’ll do our best to paint a picture of the massive music festival. Lollapalooza happens every year in Chicago, at Grant Park. In 2019, 400,000 people attended Lollapalooza, along with a few medical transports and arrests. Unfortunately, one person also died, which drew negative criticism towards the event’s safety protocols as another festival goer also died the year prior. Needless to say, the event brings a large crowd and plenty of room for cannabis sales to soar. 

Drug use is popular at Lollapalooza

Now that cannabis can be purchased legally in Illinois, one might wonder if the consumption of illegal, potentially unsafe drugs will decrease at the festival. The details surrounding the 2019 Lollapalooza death weren’t released, but the 2018 death of a 16-year-old was confirmed to be an overdose. Among the top five preferred drugs at Lollapalooza, alongside smoking cannabis and drinking alcohol, are MDMA, cocaine, and LSD, according to a survey conducted by global travel magazine, Time Out. One third of those surveyed have smoked cannabis in Grant Park, while more than 70% drank alcohol. 

Opt for vaping or eating edibles

Don’t let this give you any ideas. Smoking cannabis is prohibited per Grant Park’s rules, but more discrete methods of consumption like vaping and eating edibles will still be popular and play a major role at the festival. BDSA says 38% of consumers report taking cannabis gummies for their convenience. Just be mindful of the summer temperature! Gummies might melt into a jelly-filled mess or lose cannabinoids under extreme heat, so leave excess gummies at home or in your hotel room. 

Vape sales are likely to increase

Vape sales saw a small jump during Lollapalooza in 2019, with Friday, August 2nd, recording the highest dollar sales for vapes that month. Dispensaries in the River North and West Loop areas, like Sunnyside, Modern Cannabis (MOCA), and Dispensary 33 are likely to see the biggest growth in sales from the festival. 

According to BDSA, 30% of Illinois consumers take cannabis when going out or taking part in high-energy activities, while 36% of consumers say cannabis plays a role in celebrations or important events. 

Chicago’s sweet history 

You may or may not know Illinois’ Windy City, Chicago, has a rich candy making history. It’s been considered the “candy capital of the world” since the late 1800s. Iconic brands like Tootsie Rolls, Brach’s, Wrigley Gum, Fannie May, and Mars Candy all have Chicago roots. If they play their cards right, the city already has their foot in the cannabis edibles door. 

Chicago-based Cresco Labs is dominating the edibles market, churning out batches and batches of gummies and other cannabis edibles for Illinois dispensary shelves. It’s a good market to join. According to Chicago-based Brightfield Group, edibles made up 21% of cannabis sales last year, trailing behind consumers’ all-time favorite category: flower. The Brightfield Group predicts edibles will grow 20% annually through 2025, compared to flower growing 15% over the same period of time. The cannabis industry’s total sales are expected to reach $41 billion by 2026. 

Lollapalooza will be held starting tomorrow, July 29th, to Sunday, August 1st in Chicago’s Grant Park. Proof of vaccination or negative COVID test is required to attend. 


Kaitlin DomangueJune 10, 2021
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Terra Tech Corp. (OTCQX:TRTC) announced their plan to acquire SilverStreak Solutions Inc. The two companies have executed an agreement for the acquisition to take place. The close is expected to occur within 90 to 120 days. After the close, SilverStreak’s CEO, Sterling Harlan, is expected to consult with the company for a period of six months. 

SilverStreak Solutions is a cannabis delivery service serving California areas like Sacramento, Yuba City, Citrus Heights, Roseville, Elk Grove, Stockton, and others. SilverStreak Solutions has 22 company vehicles and about 42,000 monthly customers. As one of the first direct-to-consumer cannabis companies in their area, SilverStreak is experienced in this space and a good move for Terra Tech. 

Terra Tech’s acquisition 

“We are delighted to continue our expansion with the addition of this high-quality and well-run delivery service,” said Frank Knuettel II, CEO of Terra Tech Corp. “We believe the synergies with Unrivaled’s existing brand portfolio and distribution operation makes enormous economic and operational sense. In addition, we expect to expand SilverStreak’s base of operations utilizing our existing assets in Northern and Southern California, with the intent to develop a statewide delivery operation giving us access to millions of California consumers.”

“This is the next step in our rebuilding initiative, and with our anticipated monetization of our Hydrofarm, we expect to expand our base of operations in the near future. I would like to thank Sterling and his team for the work they have done in building SilverStreak and being the next building block in our effort towards becoming the premier West Coast and Southwest operator of cannabis assets,” Knuettel II continued. 

Terra Tech is a vertically integrated cannabis company with operations in California and Nevada. Terra Tech operates two dispensaries and a cultivation facility in California, with two additional cultivation facilities and a dispensary under development. The company operates in Nevada by way of joint ventures, operating a manufacturing and cultivation facility. 

Terra Tech sold property for $2.6 million 

Terra Tech recently sold a Nevada property on N. 4th Street, as local zoning changes prevent any cannabis activity in the area. The company sold the building for $2.6 million, improving their balance sheet by approximately $900,000, even after paying off $1.6 million in mortgages and other related sale costs. 

“Since taking over as CEO a few short months ago, we have continued to review our operations, divest unproductive assets and drive appropriate cost reductions. The successful sale of our N. 4th Street property is another positive step towards doing just that,” Knuettel said. 

“With the sale, we have now added approximately $900K to our balance sheet and alleviated numerous costs associated with its ownership, allowing us to focus our attention on working to position the company for what we believe is a very opportunistic future, including the upcoming anticipated closing of the transaction to acquire Unrivaled. This mutually beneficial transaction is expected to lead to immediate scale, driven by strong brands and revenue growth.”


Kaitlin DomangueMay 28, 2021
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Memorial Day Weekend is host to hundreds of thousands of retail sales every single year. Around this time of year, you can’t turn on the tv, radio, open Facebook, or your email without some Memorial Day advertisements broadcasted your way. The cannabis industry is no different. The holiday weekend is a historically high sales day for the cannabis space. But according to BDSA, Memorial Day Weekend in 2021 will be unlike previous years and surpass year-over-year growth seen in 2020. 

Friday is the star of cannabis sales over Memorial Day Weekend

BDSA’s newly-released report about cannabis sales over the three day weekend predicts Fridays to be the best sales day between the Thursday, Friday, and Saturday before Memorial Day. Previously, the Friday before Memorial Day Weekend has been the highest cannabis sales day throughout the month of May, with inhalable consumption methods driving the holiday mania. 

This is likely because of the outdoor-type gatherings Memorial Day Weekend brings. Everyone is outside, lighting the BBQ grill, and apparently: smoking a lot of weed. BDSA says 50% of people consume for “daytime fun”, which is right in line with the festivities leading up to Memorial Day. 

Colorado to make up 25% of sales on Thursday and Sunday

Thursday and Saturday still draw a crowd, however. The report says Thursday, Friday, and Saturday will be blockbuster sales day in the cannabis industry and 25% of the growth seen on Friday and Saturday will be thanks to transactions in Colorado. 

According to cannabis enterprise software company Akerna’s flash report, Memorial Day Weekend will gross approximately $238,000,000 in recreational and medical marijuana sales over the four day period, Friday to Memorial Day on Monday. According to the report, consumers under the age of 40 will be driving 61% of cannabis sales. 

Like the BDSA report, Akerna predicts Friday to be the highest sales day of the weekend, grossing $85,000,000. If sales reach this number, it’s up 55% from average sales on the Friday before Memorial Day. 

Cannabis beverages are hot for summer

Many predicted cannabis beverages to surge in popularity in 2021. Edibles are already taking the industry by storm. Cannabis data analytics company, Headset, recently reported edibles grew by 60% across seven legal markets in the United States. This includes market share, according to Headset data analyst Cooper Ashley, who said they increased from 10.65% in 2019 to 11.07% of the market share in 2020. 

It’s possible cannabis beverages could be the product of the summer, filling backyard coolers and poolside drinks all summer long. We’ll find out after Memorial Day Weekend is over! 


Kaitlin DomangueMay 27, 2021
CannabisPlantation-Smudde-13-scaled.jpg?fit=1200%2C800&ssl=1

6min19360

Full name: Fabian Monaco

 

Title: Chief Executive Officer

 

Company: Gage Growth Corp. (CSE: GAGE) 

 

Years at current company: I have been with Gage for over 3 years, since the Company’s inception.

Education profile: 

The University of Western Ontario – Richard Ivey School of Business

M.B.A.

2010 – 2011

 

The University of Western Ontario – Faculty of Law

J.D., Corporate & Securities Law

2008 – 2011

 

York University – Schulich School of Business

B.B.A. (Hons.)

2003 – 2007

 

Most successful professional accomplishment before cannabis:

I have a vast investment banking and legal background with over 10 years of capital markets experience, however, my most successful professional accomplishment truly lives within the cannabis space. I was fortunate enough to become a key member of the investment banking team at GMP Securities LP (“GMP”) in Canada, which ultimately contributed to the development of the cannabis industry in its early days. While at GMP, I worked on a number of industry-firsts including the first acquisition (Tweed, now Canopy Growth, acquiring Bedrocan), one of the first initial public offerings (MedReleaf) and the first $100 million financing round in the space (Canopy Growth).

 

Following GMP, I transitioned to XIB, who co-founded Canopy Rivers with Canopy Growth, an investment and acquisition firm that has underwritten a number of equity financings, ultimately supporting the industry’s ability to grow. One of the companies Canopy Rivers invested in is TerrAscend, which is now an over $4 billion market cap company.

 

Company mission: 

Gage Growth Corp.’s mission lies in providing premium cannabis to market, positively shaping cannabis culture and nurturing the community. By committing to these core values, we believe we are primed for success and rapid economic growth.

 

Company’s most successful achievement: 

We are proud of the successful build-out of our assets and our brand in a relatively short period of time, and with very limited capital. I believe this tells you two things: 

(1) We have the right people with the right expertise. You cannot build a strong cannabis brand, with expansive cultivation facilities and retail footprints, in a competitive market if you don’t have the proper team in place.

(2) We are an extremely prudent capital allocator. We raised a little less than $60 million before our Reg A+ financing in the fall of 2020, and with that we were able to create a dominant brand, three cultivation facilities and numerous retail dispensaries. This contrasts wildly when you look at some other US companies that raised $300-400 million just to build their core infrastructure.

 

Has the company raised any capital:

Yes

 

If so, how much:

To date, the Company has raised US$110+ million including our recently closed Reg A+ offering which raised a full US$50 million.

 

Any plans on raising capital in the future:

We have a very healthy balance sheet at the moment. Post our Reg A+ offering, we have ~US$40 million cash on hand. I’d also like to highlight the fact that the Company has very minimal debt. So with the cash we have on hand, we are fully funded for all our operational and expansion plans in Michigan.

 

Most important company 5 year goal:

Gage’s most important goal is to build the most dominant brand in Michigan first, and then follow by expanding into other states. We believe Michigan will be a top five cannabis market in the US, and we’d like to capture a significant market share and then replicate the same success in other markets.


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