Colorado Archives - Green Market Report

Debra BorchardtOctober 28, 2019

General Cannabis Corp. (OTCQX: CANN) entered into a non-binding term sheet to acquire substantially all of the assets of a licensed recreational cannabis retailer in Boulder, Colorado. This comes two months after the company said it was buying a Denver-based dispensary. In August, General Cannabis made its move saying it was taking these actions based on the signing of Colorado House Bill 1090, a recently approved law allowing public companies to own Colorado-licensed cannabis companies.

The company’s statement said that it will pay half of the deal in cash and half in common stock. Once the regulations surrounding the implementation of the law are finalized, the Company plans to enter into binding transactions for the licensed cannabis entities, including the business.

“We are pleased to announce our plans to acquire a fourth licensed Colorado cannabis operator,” said Michael Feinsod, Executive Chairman and Chief Executive Officer of General Cannabis. “This planned acquisition would expand our retail business to Boulder. The Business we plan to acquire would provide another strong piece to our expansion strategy. This facility would pair us with a premier retailer and expand our customer base, allowing us to leverage our skill set as HB-1090 is implemented. We look forward to completing the transaction and integrating this facility, and its employee team, into the General Cannabis family. This acquisition would bring our anticipated cultivation space to approximately 45,000 square feet, our anticipated owned dispensaries to three, and one infused products manufacturer license within the state of Colorado.

“We have been working hard looking for suitable acquisition candidates. We approach the possibilities created under HB-1090 with a methodical and detailed plan for expansion into Colorado licensed assets,” said Hunter Garth, Vice President for Corporate Development. “This potential acquisition is another carefully selected asset to add to our distribution portfolio. We plan to continue to acquire additional licensed cannabis assets within Colorado and other regulated markets. Our strong corporate platform can create a synergistic opportunity for Colorado operators looking to grow with us.”

Garth continued “We have built a strong corporate culture in Colorado that focuses on profitable growth while supporting the growth of our employees. We continue to actively seek acquisition candidates in Colorado and other states with regulated marijuana systems. General Cannabis’ ‘Succeed Here’ platform has proved to be an excellent way for entrepreneurs to grow their cannabis-related business in a multi-faceted challenging environment.”

Anne-Marie FischerJune 17, 2019

“It’s crazy to think how much money states are flushing down the toilet by keeping marijuana in an illegal market,” said Mason Tvert, VP of Communications at Vicente Sederberg, LLP upon the release of a report that detailed how the over $1.2 billion raised in cannabis tax revenue has helped the state thrive.

According to the report released this week from Vicente Sederberg, LLP, since regulating cannabis for adult use in 2014, the Colorado government has collected more than $1 billion in cannabis-related taxes and fees, which have gone into local and state improvement programs.

This report coincides with and includes data from the Colorado Department of Revenue’s release of cannabis sales and revenue figures for April 2019. The Vicente Sederberg report, which offers specific figures and analyses on Colorado cannabis tax revenues can be downloaded here: http://bit.ly/64MonthsOfA64.

Since legalizing, Colorado has 2,917 licensed marijuana businesses and 41,076 licensed individuals working in the industry, according to the Department of Revenue. $6.56 billion worth of marijuana products have been sold in the state of Colorado since 2014.

Taxes collected by the state help fund a range of youth and public health programs, which include mental health services, addiction services, affordable housing, youth literacy initiatives, and anti-bullying programs at the K-12 level.

As the Vicente Sederberg report states, more than $283 million in marijuana-specific tax revenue that has been raised for K-12 schools, most which has been spent on school construction. The first $40 million raised each year was allocated through Amendment 64, which directed the Legislature to enact an excise tax on wholesale transfers of marijuana for adult use. The excise tax revenue was allocated to the Building Excellent Schools Today (BEST) grant program, funding the abovementioned school construction projects.

“We were never under the illusion that legalization would be a fiscal panacea, but we knew it would have a substantial and positive impact,” said Vicente Sederberg LLP founding partner Brian Vicente, “Funds are being used on everything from building schools to hiring school health professionals and paying for bullying prevention programs.”

Following the Department of Revenue report, Colorado’s governor, Jared Polis said: “Today’s report continues to show that Colorado’s cannabis industry is thriving, but we can’t rest on our laurels. We can and we must do better in the face of increased national competition. We want Colorado to be the best state for investment, innovation and development for this growing economic sector.”

StaffApril 30, 2019

As an industry, it is well documented and understood that the edibles market and extraction sector are the future. Today, TR Concentrates, the producer behind The Root of It All cannabis-infused essential remedies designed for everyday conditions in Colorado, announced that their product line will be available in 13 Native Roots locations across Colorado.

Native Roots is one of the largest Colorado state operators and among Colorado’s top cannabis dispensaries providing a variety of high quality medical and recreational marijuana, extracts and infused products. Native Roots will be stocking all five products available under The Root of It All lineup.

“Colorado has been a trailblazer in the cannabis industry since 2014, equating to almost 30% of the nations’ total cannabis revenue,” said Kurt Junggren, Vice President of Sales and Brand Acquisition at TR Concentrates. “Colorado chains like Native Roots have been imperative to that success by providing consistent and quality products to consumers statewide. This partnership enforces those standards, and ensures that Coloradans will have further access to the best ingredients cannabis has to offer.”

Known for its innovative botanic remedies and precise formulas, The Root of It All provides best-in-class cannabis-infused essential oils and topicals that are targeted towards everyday conditions such as low energy, restlessness, sleeplessness, stress, and discomfort and lingering pain from sore muscles and joints.

“The Native Roots brand has set high expectations amongst consumers, both medical and recreational, across Colorado,” said Chris Znerold, CMO of Native Roots. “Our brand standards have elevated us as the leading dispensary in the front range and high country. Partnering with brands like The Root of It All work to ensure we’re carrying the most exceptional products on the western slope. Consumers can expect to see more products from The Root of it All in select Native Roots locations throughout the year.”

All of the products under The Root of It All are free from alcohol, glycerin, and/or propylene glycol, promoting a more holistic culture and the community around cannabis. This partnership paves the way for further retail expansion as North America continues to legalize cannabis.

StaffFebruary 21, 2019

Acquisition of Real Estate, Facilities and Infrastructure for Two Active Grows and Five Colorado Medical Cannabis Dispensaries

COLORADO SPRINGS, Colo., Feb. 21, 2019 /AxisWire/ Covalent Collective, Inc., a burgeoning network of vertically integrated cannabis-centric enterprises, announces today the completion of its first acquisition, internally referred to as the “Colorado 16”, which includes ownership of the real estate that leases multiple medical marijuana cultivations, production and five Colorado medical cannabis dispensaries. The operators of Colorado 16 are among the most experienced in the cannabis industry and bring to bear more than ten years of experience in the production, extraction and distribution of cannabis products. Terms of the transaction were not disclosed.

“The acquisition of Colorado 16 will form the foundation of Covalent’s vertically integrated operating platform. Our long-term strategy is to enhance and strengthen our platform and significantly expand it throughout the US, which includes plans to develop over one-million square feet of cultivation capacity. We look forward to continuing to share our progress on our various business initiatives with investors in the months ahead,” commented Mr. Bill Gregorak, CEO of Covalent Collective.

Colorado 16’s proprietary cultivation processes have resulted in consistently high-quality production and amongst the industry’s lowest cost of production. A next generation production facility is currently scheduled to be completed in 2019 and is expected to measurably improve yield and quality consistency. Hydroponics Depot, the largest supplier of canna agricultural supplies in Arizona, which is included in the Colorado 16 acquisition, will further help reduce the overall cost of production while capitalizing on the growth of both commercial and home cultivation operations in the AZ market.

About Covalent Collective:

Covalent Collective, Inc. is a British Columbia, Canada company founded in 2014 and headquartered in Colorado Springs, CO. The Company is building a diverse network of vertically integrated cannabis-centric enterprises that span the entirety of the legal cannabis and hemp industries. With a vision to build the largest grow capacity in the U.S., Covalent Collective’s mission is to create stronger bonds throughout the greater cannabis community through the execution of a strategic acquisition and joint venture strategy that is strategically positioned to support eventual federal legalization in the United States. For more information, please visit https://covalentcannabis.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and “forward- looking information” within the meaning of Canadian securities laws, or collectively, forward-looking statements. Forward-looking statements in this press release may be identified by the use of words such as “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, including statements with respect to the Company’s rebranding and acquisition strategies. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment and future approvals and permits. Actual results, performance or achievements could differ materially from those expressed in, or implied by, any forward-looking statements in this press release, and readers should not place undue reliance on any such forward-looking statements since they are not guarantees of future results. The Company does not undertake and specifically declines any obligation to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

Media Contacts:

Nick Opich / Cynthia Salarizadeh

KCSA Strategic Communications

212-896-1206 / (856) 425-6160

nopich@kcsa.com / cynthia@kcsa.com

Investor Contact:

David Hanover

KCSA Strategic Communications

212-896-1220

dhanover@kcsa.com

Richard Kaiser

Covalent Collective, Inc.

rkaiser@covalentcannabis.com

757-306-6090

William SumnerDecember 12, 2018

Earlier this week, the cannabis technology platform LeafLink released its 2018 Wholesale Cannabis Pricing Guide and the company learned that Alaska and Maryland are the two most expensive states to buy legal cannabis, followed by Nevada and California.

Examining the wholesale landscape of some of the most mature cannabis markets in the United States, the guide looks at the average wholesale price of cannabis in eight states: Alaska, Arizona, California, Colorado, Maryland, Nevada, Oregon, and Washington. The product types covered by the report include concentrates, cartridges, edibles, flower, and pre-rolls.

Although the report does not dive into the specifics of why one state is more expensive than another, the authors speculate that the Alaska and Maryland’s high prices are due to the states having a low number of cannabis cultivators. In the two states where cannabis is cheapest, Washington and Oregon, there is currently a glut of cannabis cultivators; leading to low prices and oversupply.

“As the standard wholesale marketplace for the industry’s leading brands, we are able to provide crucial market information to cannabis retailers and brands, which will help inform their plans for 2019,” said LeafLink Co-Founder and CEO Ryan G. Smith in a statement. “As more states like Massachusetts, Connecticut, Pennsylvania, and Michigan continue to establish wholesale operations, we will be able to provide a larger scope of market activity to further empower the LeafLink community, as well as the industry at large.”

Nationwide, the average price for a pound of cannabis flower is $2,124 per pound, while a gram of pre-rolls costs around $5.66 per gram. The average price for cannabis concentrates costs approximately $26.07 per gram and cartridges are priced at around $39.55 per gram. Edible cannabis products, on average, cost around $0.20 per milligram.

When taken on a state-by-state level, cannabis prices start to vary. With regards to cannabis consumer preferences, the report found that consumers prefer products in the lowest 25% price range. The exception to this was pre-rolls. On average, consumers preferred pre-roll products in the 25%-49.99% price range.

The report also examined the relationship between pricing and discounted sales. On average, approximately 16% of the products sold through LeafLink’s platform have a discounted price. Across all eight states examined, discounted products generated 3% more sales than regularly priced products.

The discount effect is magnified when combined with larger sales campaigns. During the last year, LeafLink ran two sales promotions, one in the month leading up to 4/20 (dubbed 3/20) and one in July called 7/10; which is a considered an industry-wide “holiday” for concentrates.

When combined with those larger sales campaigns, discounted products generated 37% more sales on 3/20 and 38% more sales on 7/10. This seems to suggest that cannabis retailers stand to significantly boost their sales numbers by combining sales promotions with discounted cannabis products.

William SumnerNovember 20, 2018

Is the cost of legalized cannabis too high? According to one study commissioned by the Centennial Institute at Colorado Christian University, the answer is yes. Hoping to understand the impact of cannabis legalization fully, the study examined publicly available data in the state of Colorado, highlighting nine areas of interest. Those areas include health, productivity, traffic, crime, housing, environmental impact, cannabis tourism, homelessness, and pets.

According to the study, for $1.00 generated by Colorado’s cannabis industry, state residents spent approximately $4.50 to mitigate the costs of legalization. The most significant contributors to costs were related to the healthcare system and high-school dropout rates.

The study also highlights the dramatic rise in cannabis-related calls to the state Poison Control center, the correlation between cannabis use and those without a college degree, and the yearly estimated costs for cannabis users ($2,200 for heavy users, $1,250 for moderate users, and $650 for light users).

“Studies such as this show that the only people making money off the commercialization of marijuana are those in the industry who profit at the expense of public health and safety,” said Kevin Sabet, an ardent cannabis critic and president of the anti-legalization group Smart Approaches to Marijuana (SAM), in a statement.

While the study presents a damning portrait of cannabis legalization in Colorado, the study also relies on flawed estimates and simple correlations to arrive at many of its conclusions.

For example, when addressing the issue of cannabis addiction, researchers are keen on pointing out that the costs of treatment for cannabis addiction are approximately $31.4 million. However, what is not mentioned, although it is clearly presented in the study’s chart, is that the number of individuals admitted for treatment is the lowest it has been in 10 years.

Researchers also note that fewer cannabis users have a college degree (19%) when compared to non-users (27%). However, according to the study itself, on average recreational cannabis users have a slightly above average income ($60,000).

Furthermore, when calculating the potential cost of cannabis use among students, researchers take a specious approach. To come to their conclusion, researchers multiply the number of students who dropped out of high school and multiply it by the number of high school students who use marijuana and the cost of not earning a high school diploma. The study assumes that students who use cannabis will drop out of high school, ignoring all other mitigating factors or the fact that Colorado’s high school graduation rates are at an eight year high.

In the absence of long-term data, studies like the one commissioned by the Centennial Institute will remain inherently flawed; highlighting the need for extensive, peer-reviewed studies into the actual effects of legalizing adult-use cannabis in the United States.

Michael CooperOctober 8, 2018

On September 28, the United States Attorney for the District of Colorado, Bob Troyer, issued a warning for the state-legal cannabis industry: the “crosshairs” of federal enforcement may shift to “the public harms caused by licensed businesses and their investors, particularly those who are not complying with state law or trying to use purported state compliance as a shield.” In an interview with the Denver Post the same day, the U.S. Attorney warned that his office would soon bring an enforcement action against a licensed chain of marijuana dispensaries that he alleged was actually an illegal drug-trafficking organization.

Should the law-abiding cannabis industry panic? Could this be the moment some feared when Attorney General Jeff Sessions revoked the Cole Memo in January 2018, granting more discretion to U.S. Attorneys around the nation—including U.S. Attorney Troyer—to pursue cases against state-legal marijuana businesses?

And would such a “crackdown” spread across the nation since U.S. Attorney Troyer noted that he is “the U.S. attorney leading other U.S. attorneys on marijuana issues?”

Though these are reasonable questions—and we have not been surprised to field them as compliance consultants who help businesses that want to make sure that they are following the letter and spirit of the rules governing these state cannabis markets—the simple answer is “no.” There are multiple reasons to believe that federal prosecutors are unlikely to target businesses in compliance with the letter and spirit of state marijuana law.

First, it is important to pay attention to what the U.S. Attorney stated he is currently tackling: a chain that is engaged in illegal drug trafficking.

U.S. Attorney Troyer argued that drug syndicates view the state’s legal marijuana industry as perfect cover for their illegal activities. According to the U.S. Attorney, the same pound of marijuana is worth more than 5 times as much on the East Coast as in Colorado. That creates an incentive for criminal syndicates to grow in Colorado and sell in other states.

But, of course, licensed Colorado marijuana businesses are not permitted to sell their cannabis in Maryland or Massachusetts. If a licensed Colorado cannabis business were growing cannabis for interstate sale, that would be a serious violation of Colorado law.

Thus, if these are the types of licensed businesses federal prosecutors will target, it is a misnomer to call it a crackdown on licensed cannabis businesses. That would be akin to a crackdown on “licensed banks” that simply kept all of the money that the banks’ “customers” deposited. The beginning of the business model mirrors the legal model (a licensed cultivator grows cannabis, a licensed bank takes deposits), but in both cases, the next steps are a clear violation of law that cannot be cured by a license.

Second, though the U.S. Attorney warned that “sometimes” compliance with state law would not be relevant to his decision to bring a prosecution, he made explicit that his focus would be on “safety.”

Having dealt with U.S. Attorney’s offices throughout my career, it would be very surprising for them to take a scattershot approach. Those offices appreciate the very significant prosecutorial power they wield. U.S. Attorney stated that his office has identified black-market drug trade and violent crime associated with licensed businesses. If so, that is where their sweep will begin. They will not defer those cases to use their finite resources to prosecute industry players trying to follow the letter and spirit of the Colorado rules.

Third, federal prosecutors do not operate with unguided discretion. Indeed, there have long been limits on federal prosecutors’ ability to bring prosecutions against state-legal medical marijuana businesses that are in compliance with state law in the form of the Rohrabacher-Blumenauer Amendment.

To the extent that federal prosecutors begin aggressively targeting businesses in compliance with state law, they may find their discretion to bring such cases further curtailed. The legislative actions in the wake of the revocation of the Cole Memo are particularly instructive. At that time, Sen. Cory Gardner and others aggressively pushed back on the Department of Justice. Those pro-industry legislators ultimately received a commitment from President that the revocation of the Cole Memo would “not impact Colorado’s legal marijuana industry.”

Thus, to the extent that U.S. Attorney Troyer launches prosecutions of licensed businesses that are in full compliance with the letter and spirit of Colorado’s marijuana rules, one can expect a similar pushback. And that pushback could result in far more significant limits being placed on U.S. attorneys’ discretion in marijuana cases.

For example, it could lead to a vote on the McClintock-Polis Amendment, which is reported to have significant support and that would place the same limits on prosecutions of state-legal adult-use marijuana businesses as the Rohrabacher-Blumenauer Amendment places on medical marijuana. Coupled with the Rohrabacher-Blumenauer Amendment, this would functionally preclude federal prosecutors from expending resources to bring prosecutions against state-compliant marijuana businesses.

Alternatively, aggressive prosecutions could also lead to sufficient pressure on the White House to uphold its commitment to Sen. Gardner that a new “Cole Memo” could be implemented to restrict U.S. Attorneys’ discretion to bring such actions. Of course, this new memo could go potentially beyond the protections in the Cole Memo if aggressive prosecutions lead to a sufficient political backlash.

Last, aggressive prosecutions of state law-compliant businesses could lead to further legislative momentum for a more comprehensive fix. For instance, it could provide more urgency for backers of the STATES Act that would permanently immunize businesses acting in compliance with state law. That, of course, would foreclose such prosecutions in the future, and President Trump has indicated his probable support for the bill.

In short, it is no time for industry panic. There is a good reason to believe that any crackdown in Colorado or the other legal states is unlikely to reach cannabis businesses that are making robust efforts to comply with the letter and spirit of the law. But as prosecutors zero in on conduct committed by licensed businesses, the industry and its supporters will be watching closely.

William SumnerAugust 10, 2018

Cannabis crime is down and tax revenue is up, according to an annual report released by the city of Denver, Colorado that analyzes the effect of cannabis legalization in the city. The report covers data from January 2017 to January 2018 and demonstrates the continued positive impact of cannabis legalization.

From 2016 to 2017, medical cannabis sales declined by 3% while retail cannabis sales in the city increased by 29%. Tax revenue generated by cannabis sales and licensing in 2017 increased by roughly 20% and for 2018 revenue is projected to increase by 8%. Overall, the tax revenue generated by cannabis sales represented approximately 3.4% of the city’s general fund revenue compared to 3.02% in 2016.

“We took on the daunting challenge of becoming the first major city in America to manage legalized recreational marijuana and we are having success,” Hancock said. “That’s because of coordination between Denver’s Excise and Licenses, Denver’s Fire Department, Police Department, Department of Public Health and Environment, Community Planning and Development, as well as our partners in other city agencies, the community from the marijuana industry and public health advocates.”

From 2014 to 2018, cannabis tax revenue contributed more than $11 million to the city’s “High Costs” youth prevention campaign as well as various youth-serving organizations funded by Denver’s Offices of Children’s Affairs and Behavioral Health. Additionally, $12.4 million in cannabis tax revenue was appropriated for deferred maintenance, affordable housing, and opioid intervention.

2018 RETAIL MARIJUANA SPECIAL SALES TAX AND STATE SHAREBACK ALLOCATION

Regulation: $2,385,647, 12%
Enforcement: $2,805,803, 13%
Education: $3,652,116, 17%
Public Health: $2,363,375, 11%
Improvement to City and Facilities: $10,000,000, 47%

Crime

Cannabis-related crime in 2017 represented less than 1% of overall crime in the city and declined from 0.42% in 2016 to 0.30% in 2017. Likewise, cannabis industry related crime fell from 0.32% in 2016 to 0.21% in 2017. The report stated that “Violent crime related to the licensed marijuana industry is rare, with seven reported in 2013, 10 reported in 2014, eight reported in 2015, three reported in 2016, and 8 reported in 2017.” Marijuana-related DUIDs stayed flat at 63 in 2016 and 63 in 2017.

In a statement, Denver Mayor Michael B. Hancock praised the report and stated that its results demonstrate that the city’s approach to cannabis legalization is working.

To view the full report, click the following link.

Jack SmithAugust 3, 2018

Despite initial fears that Colorado’s regulated marijuana market might only fulfill part of the demand from consumers, a new study shows those fears are overblown.

The study, produced by The Colorado Department of Revenue (DOR)’s Marijuana Enforcement Division, shows that in 2017, the regulated market was able to meet both resident and visitor demand for cannabis. That compares to 2014, when only 65 percent of consumption came from the regulated market. The new data shows that consumers are moving from marijuana flower, towards concentrates, which highlights a competitive market.

“This update improves upon the original 2014 market study methods and uses official market data to provide an updated insight to and assessment of Colorado’s regulated marijuana markets through 2017,” said Mike Hartman, DOR executive director in a statement provided to Green Market Report.

Hartman added: “This report gives me comfort that the licensed, regulated commercial marketplace is working well and is part of the state’s continuous effort to monitor a comprehensive marijuana regulatory framework, improve transparency and use data to inform the public about Colorado’s marketplace.”

In 2017, 340.7 metric tons of flower were regulated in the state. 301.7 metric tons went towards sales to consumer, while 34 metric tons went towards inventory and the remaining 6 were for residual marijuana.

The Colorado market continues to be a competitive and diverse area for consumers, with no one company dominating the market. The DOR report actually noted that the 10 largest operators in the state saw a decline in market share, coming in at 23.1 percent in 2017, down from 25.4 percent in 2016 and 26.6 percent in 2015.

Prices are also coming down, as the market remains extraordinarily competitive. Marijuana flower prices have “declined slowly,” according to the DOR, while the price of a standard serving of THC has “declined more rapidly.”

Though pricing trends are largely coming down, there are still some variances in different parts of the state. In mountain and border towns, consumers will pay between $8.30 and $11.75 per gram for flower, compared to $5.79 per gram for the average.

In 2017, flower comprised 61.8 percent of the market, while concentrate made up 27.3 percent, trim accounted for 5.9 percent, with infused edibles and infused non-edibles accounting for 4.9 percent and 0.3 percent, respectively.

Other highlights from the study include Colorado’s attitude towards using technology to make it easier to respond to ever-changing consumer needs, while also keeping up with regulations.

“Colorado is the first state to use inventory tracking data to understand market dynamics; the first to use flower equivalent measures; and the first to compare supply, demand, and consumption to monitor regulatory performance,” Adam Orens, Founding Partner of Marijuana Policy Group, said in a release accompanying the study.

Orens added that the findings are important to show that the cannabis market can be regulated effectively and is a sign of the “evolution of regulated cannabis markets – where governments are monitoring market data and adjusting policy accordingly.”

Jack SmithMay 23, 2018

BDS Analytics has issued a new report on the public attitude towards marijuana in Colorado and there has been a strong movement towards more positive perception, as the state continues to embrace its cannabis culture.

The study, which was conducted from Jan. 16, 2018-Feb. 13, 2018 and ensured all participants were 21 or older, noted there has been “a substantial increase” in Colorado adults consuming marijuana, compared to the first-quarter of 2017. The researchers also found that adults were more open to exploring cannabis in different forms, though they did have prior cannabis experience or were open to using it in the future.

Colorado continues to be among the few states with legalized marijuana for recreational use and it’s clear its residents are taking advantage of that. The state saw a 12 percent increase in dollar sales year-over-year from the first-quarter of 2017 to the first quarter of 2018, according to retail sales that BDS tracks.

Among those who are consuming, BDS found Colorado’s consumers as skewing slightly older and more likely to be male. The consumers are also more likely to see it as medicine, consider themselves “connoisseurs” and claim that cannabis is part of their everyday routine.

There’s also been a shift in using it towards health and wellness benefits, especially for pain management and belief.

Here are 9 of the most interesting facts from BDS Analytics’ findings about the Colorado cannabis market.

1. Consumption is going up.

BDS found that 35 percent of Colorado residents consumed marijuana in the first-quarter of this year, as opposed to just 25 percent in the first-quarter of last year.

2. Rejectors are less likely to support it now.

Marijuana became legal to purchase in Colorado in 2014 for anyone over the age of 21 for any purpose, making it the first place in the world to have that distinction. Since then, however, rejectors have become more entrenched in their thinking.

Just 63 percent of rejectors would support legalization now, compared to compared to 80 percent in the first-quarter of 2017. In total, 85 percent of respondents think there should be some form of legal marijuana use. Perhaps not surprisingly, 99 percent of consumers who’ve used marijuana in the past six months think it should be legal in some form.

3. Health benefits.

Sixty-eight percent now believe marijuana has some health benefits, including 68 percent who believe it can relieve pain, 61 percent believe it can help with the side effects of chemotherapy and 55 percent believe minors should use it if okayed by a doctor and with parental consent.

4. Relaxation usage going down.

People who said they were using it for relaxation benefits went down year-over-year. Thirty percent said they were using it for relaxation (things like managing anxiety or stress) in the first-quarter, compared to 34% in the first-quarter of 2017.

5. An evening hit.

Consumption of marijuana is favored mostly in the evening, though the study noted that consumers are partaking in their usage throughout the day.

6. Methods are shifting.

The way people are consuming marijuana is shifting, if just a bit. They continue to prefer inhaling it, but topical use is also growing. 79 percent of consumers inhaled it in the first-quarter of 2018, compared to 67 percent in the first-quarter of 2017.

7. Gummy divine.

For those who prefer to consume it using edibles, gummy candies reign supreme.

Fifty-four percent of respondents say they have consumed gummy candies in the past six months. Forty-nine percent say they have consumed baked goods, 44 percent say they’ve eaten chocolate candy and 36 percent say they’ve eaten hard candy in the past six months.

8. Topical.

Salves are the most preferred way to consume it by topical consumers, but lotions and creams also receive heavy usage. Thirty-four percent say salves or balms are the most preferred way to use it.

However, of those who have applied it topically in the past six months, lotions comes in at 45 percent, creams at 43 percent and salves or balms at 41 percent.

9. Where to buy?

Overwhelmingly, Colorado consumers prefer to purchase their marijuana from a dispensary, at 90 percent, compared to 88 percent in Q1 2017.

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