Nevada Archives - Green Market Report

Debra BorchardtOctober 27, 2021


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.

Provided by CCB/DOT

Schools received over $67 million from the CCB, representing combined revenue from the State Wholesale Cannabis Excise Tax, along with civil penalties, licensing, and other fees collected through regulation of the cannabis industry. In addition to that, over $92 million in Retail Cannabis Excise Tax Revenue was sent to the school’s distributive account in FY 21.
In 2019, Governor Sisolak signed SB 545, which stated all revenue from the 10% retail cannabis excise tax would be sent to the Distributive School Account.

“This is what Nevadans expected since the legalization of recreational marijuana,” Governor Steve Sisolak said. “Education remains one of my top priorities, and I’m proud to see promised tax revenue from cannabis sales directly funding our students and classrooms.” The CCB officially began regulating Nevada’s cannabis industry on July 1, 2020, transitioning oversight
from the DoT’s Marijuana Enforcement Division.

Nevada Cannabis Statistics

There are now 346 certified medical cannabis establishments in the state and 408 licensed recreational cannabis establishments. 336 entities hold dual licenses. There are 87 active dispensary/retail stores in the state.

Planet 13

One of the best-known operators in the state, Planet 13 Holdings Inc. (OTCQX: PLNHF) reported $11.9 million in sales during July. During the first month of operations, the new Orange County store generated ~$800 thousand in sales. In September, the company doubled the size of the Las Vegas superstore cannabis retail area by adding 40 registers for higher sales volume and faster customer checkouts. The store also added an additional reception desk in order to better address the crowds of shoppers.

“Based on the early results we’ve seen from the Orange County store we are confident in the trajectory of sales and the quality of service and product we are providing. Sales have grown week over week as we start to gain traction as one of the top dispensaries in Orange County,” said Bob Groesbeck, Co-CEO of Planet 13. “Looking back at the early days of Planet 13 Las Vegas is a good reminder that it takes time to build customer trust and awareness. We took that dispensary from generating around $3 million a month to now north of $9 million with gross margins above 50%, all by focusing on the customer and continuing to refine and improve the experience and product selection.”

Debra BorchardtOctober 2, 2020


Nevada is a tourist mecca. Between Las Vegas, Reno, and Lake Tahoe, tourism makes up a significant portion of the state’s economy. In the 2018 calendar year, the 56 million people who visited Nevada collectively spent $65.5 billion, up from $63.7 billion the year before, according to the Nevada Department of Tourism & Cultural Affairs

So it was natural that when cannabis became recreationally legal in Nevada in 2017, many operators opened dispensaries near the high-wheeling masses that visit the state for relaxation and entertainment. Of course, no one could have foreseen that a global pandemic would grind tourism to a halt – hurting the cannabis industry that pinned its fortunes to it. 

In the early months, Nevada was affected badly by the shutdowns caused by the coronavirus. The state had an unemployment rate of 28.2% in April as casinos and the businesses that thrive off of tourists were ordered to close. This greatly impacted the dispensaries who fed off the steady stream of visitors. Consider that Planet 13, touted as the world’s largest weed store, reported a drop of 35% in Q2 2020 revenues at the end of August.

The Local Bet

But not all cannabis companies bet large on tourists. C21 Investments, a vertically integrated cannabis company with operations in Nevada and Oregon, owns Silver State Relief which has remained focused on serving local medical patients and adult consumers in locations far from The Strip. With retail outlets in Sparks and Fernley, Silver State caters to a local clientele in a big way. The dispensaries are impressive, featuring over 800 SKUs in 15,000 square feet of retail space. In these times when people are practicing social distancing, the stores are also offering curbside pickup and next-day deliveries. 

What’s clear is that the “think local” strategy has paid off. C21 posted their Q2 earnings last week, reporting that revenues rose $1.2 million and that cash flow improved 200% compared to Q1. The Nevada dispensaries generated a record $8.5 million in revenue in Q2, a 23% increase from Q1. This includes July as the first month reporting over $3 million in retail sales.

C21 President and CEO Sonny Newman said in a statement, “C21 has achieved a critical milestone this quarter as evidenced by the significant cash flow generated and our positive earnings per share. Our focus and hard work over the last twelve months have paid off, and we are now in a strong position to capitalize on the next phase of business growth. Our Nevada dispensaries continue to impress with the record retail revenue achieved this quarter.”

An Uncertain Return for Tourism

Adopting a local-first strategy is smart for any dispensary, but it’s particularly important at times like these. With a vaccine for COVID still a ways off, tourism is likely to flounder for the foreseeable future. According to the latest forecast from Oxford Economics, international tourism is expected to drop by more than 70% in North America, and it will take until 2024 for tourism levels to reach what they were in 2019.

Those statistics are sobering to operators who put their money on tourist towns. Sales data throughout the pandemic has shown that supply and demand don’t fluctuate wildly for cannabis as it does for other goods. In fact, as a whole, U.S. retail sales of cannabis are up 40% year-over-year. Companies like C21 that are grounded in their community will be able to let it ride through this pandemic.

A Sales Recovery

Cannabis tech firm Akerna (KERN) said that in May, cannabis sales started to recover for the companies that use its services. This could be attributed to the reopening of restaurants and shops. Adult-use sales experienced a 52% increase in average daily sales when compared to April. It is estimated that cannabis retailers experienced a 35% potential loss in total sales between March 21 and May 31, when compared to January and February averages.

As the state’s casinos began to open back up in June, daily average cannabis sales returned to pre-COVID numbers. Adult-use retailers experienced a 26% in average daily sales when compared to May. Since June, adult-use cannabis sales increased by approximately 14%, representing 54% less growth than the rest of the industry.

“Sales have rebounded past pre-COVID numbers,” said Ryan Ballman, Business Intelligence Engineer, Akerna. “Though the state’s economic rebound has been a bit slower than the rest of the country, Nevada’s cannabis industry is still well on its way to making a full recovery.” 


Debra BorchardtJuly 23, 2020


What started out as an investigation over late or unpaid taxes mushroomed into a laundry list of misdeeds culminating into one of the largest fines levied against a cannabis company since the industry was legalized in Nevada. The new Nevada regulator, the Cannabis Compliance Board, signed off on the agreement with CWNevada LLC, whose majority owner is attorney Brian Padgett this past Tuesday. As a result of the settlement, CWNevada will pay $1.5 million in back taxes, $1.25 million in fines, lose six licenses and must sell its remaining eight licenses.

Padgett has been replaced by a receiver, Dotan Melech, who signed off on the agreement. In addition to the fines and back taxes, CWNevada also owes $300,000 in back pay to employees.

The following six CW Licenses/Certificates shall be revoked:
a. Ali Baba Medical Cultivation Certificate (C009);
b. Ali Baba Recreational Cultivation License (RC009);
c. Oxbow Medical Production Certificate (P010);
d. Oxbow Recreational Production License (RP010);
e. Oakridge Distribution License (T022); and
f. Oakridge Medical Cultivation License (C011).

The Receiver agrees to use his best efforts to sell the following eight CW Licenses/Certificates within six (6) months of the Effective Date of this Stipulation and Order subject to approval by the Receivership Court:
a.Blue Diamond Medical Dispensary Certificate (D010);
b. Blue Diamond Recreational Dispensary License (RD010);
c. Highland Medical Cultivation Certificate (C010);
d. Highland Recreational Cultivation License (RC010);
e. Ali Baba Distribution License (T021);
f. Ali Baba Medical Production Certificate (P009);
g. Ali Baba Recreational Production License (RP009); and
h. Oakridge Recreational Cultivation License (RC011).

Tax Man Cometh

The investigation began in 2018 over unpaid taxes according to the case filed by the State of Nevada. It escalated when inspectors showed up on March 18, 2019 and found employees were working with marijuana products in an unapproved area, which was the breakroom. The company was told to quarantine the product until further notice, but employees said they returned the product to the cultivation facility. Again, the state said not to move the product. On video two of the quarantined boxes were shown to have been delivered to a dispensary.

METRC data showed that some of the product was repackaged at the cultivation facility. On April 12, 2019, the Department put an administrative hold on all Clark products which would have prevented marijuana products from the Clark NMSD dispensary from being legally transferred. On May 8, 2019 another inspection took place. Auditors also discovered 89 groups, a total of 1,342 units, of untagged marijuana products.

May 9, 2019, the Department’s inspectors conducted an inspection of CWNevada’s cultivation facility located at 9680 Oakridge Ave, Pahrump, Nevada 89048 and discovered the following transfers of marijuana from Clark NMSD dispensary to the Oakridge cultivation facility when none of the marijuana originated from the Oakridge cultivation facility. In addition to this, the company couldn’t provide video surveillance as required. Between March 21, 2019 and June 7, 2019, CWNevada sold 1,924 marijuana products where the point of sale data did not match the marijuana products identified in METRC.

Padgett when notified he needed to pay his taxes, continued to say he would pay the taxes, but then never did. In addition to unpaid taxes, CWNevada incurred expenses and debts that resulted in a Final Award in favor of one of its creditors, 4Front Advisors, LLC  in the amount of $4,987,092.29. Employees were also moving money from the company to various bank accounts for Padgett. On June 13, a receiver was appointed.

Burn It Down

According to the court documents, on February 27, 2020, the Department ordered the destruction of the untagged marijuana and marijuana products discovered at the dispensary located at 6540 Blue Diamond Road, Las Vegas, Nevada 89139 on or about May 8, 2019, the cultivation facility located at 9680 Oakridge Ave, Pahrump, Nevada 89048 on or about May 9, 2019 and February 6, 2020, and all untagged marijuana and marijuana product observed by the Department at the cultivation and production location at 4145 Ali Baba Lane, Las Vegas, Nevada 89048.

On March 30, Padgett was found guilty of contempt for violating court orders of the receivership.

StaffFebruary 26, 2020


The Nevada Department of Taxation issued a Public Health and Safety Notice Advisory 2020-05 on February 21, 2020, advising consumers and patients to avoid consuming marijuana which was listed in the notice. The affected marijuana failed secondary microbial testing conducted by an independent testing laboratory. The cannabis was tested for yeast and mold, bile-tolerant gram-negative bacteria, coliforms, and Aspergillus. This was a follow-up advisory to Public Health and Safety Advisory 2019-03 and is part of the same investigation.

The list included the following strains: Jack Herer, Cactus OG, White OG B Blend, Wookie, Fruitcake, 13 Gorillas, Blue Zkittlez, Cherry OG-F3, Last OG, King Kong Cookies, White OG, Lavender Jones, Zombie Kush, Gelato Glue, Monster Cookies, TK Stardawg Haze, Vegas Golden Kush, Code Orange, and Purple Goats.

The products were sold at the following dispensaries, however, the statement said that there was no reason to believe that the dispensaries or cultivators had any knowledge that the products exceeded allowable limits.

  • Essence
  • Rise (owned by GTI or Green Thumb Industries)
  • Thrive Cannabis Marketplace
  • MMJ America
  • Fine Cannabis Dispensary
  • Jardin Premium Cannabis Dispensary
  • Curaleaf
  • ShowGrow
  • Blum
  • Nevada Made Marijuana
  • Jenny’s Dispensary
  • Las Vegas ReLeaf
  • Sahara Wellness
  • Top Notch Health Center
  • Deep Roots Harvest
  • Acres Cannabis
  • The Source
  • Thrive Cannabis Marketplace
  • Exhale
  • Silver Sage
  • The Grove
  • Oasis Cannabis and The Dispensary NV

The affected marijuana was cultivated by the following cultivators and was harvested between May 2019 and November 2019:
1. Integral Cultivation LLC (license #70155083229545863037)
2. THC Nevada LLC (license #54980305084297438991)
3. 3AP INC (license #52712498758628776807)
4. Nevada Group Wellness LLC (license # 28729875179355972226)
5. Qualcan LLC (license #35051929286907100905)
6. Franklin BioScience NV LLC (license #82088286840467115782)

CANNEX Nevada LLC, an independent marijuana testing facility, provided passing test results to the cultivators for all above-mentioned products. CANNEX had been closed in December pending a review of its lab practices. The company was subsequently approved to begin testing again provided it abide by the required steps as per the state.




Debra BorchardtOctober 10, 2019


The two Russian nationals that were arrested on Thursday for campaign finance violations also tried to apply for marijuana licenses in Nevada according to the arrest allegations. The document said that  Lev Parnas, Igor Furman, David Correia and Andrey Kukushkin “planned to use Foreign National-1 as a source of funding for donations and contributions to State and federal candidates and politicians in Nevada, New York and other states to facilitate acquisitions of retail marijuana licenses.”

The group is alleged to have a multi-state license strategy in or about September to October 2018. The group contemplated to use between $1 and $2 million in political contributions. The funding scheduled two $500,000 transfers. “Foreign National-1 then arranged for two $500,000 wires on or about September 18, 2018 and October 16, 2018 to be sent from overseas accounts to U.S. corporate bank account controlled by Frumanand another individual.”

The problem is that the group applied two months too late for a Nevada recreational license even though they attempted to contribute to state politicians. Kukushkin told the group they were “two months too late to the game unless we change the rules.” Then the group discussed needing a particular Nevada state official to push through their application. They gave candidate-1 $10.000, but then it seems the group washed their hands of the license application process.

The document alleges “that they needed a particular Nevada State official, the position for which Candidate-1 was running, to green light to implement this.” As noted above, FRUMAN made a $10,000 donation, funded by
Foreign National-1, to Candidate-1 on or about November 1, 2018. On or about November 4, 20l8, PARNAS asked KUKUSHKIN to arrange for additional funding from Foreign National-l to make an additional donation to Candidate-1, to which KUKUSHKIN responded that the $1 million Foreign National-1 had already provided to GEE was in order to cover all the donations whatsoever.”

Money transferred by [Foreign Nationalel] was to support the very specific people states (per table) in order to obtain green light for licensing. I haven’t changed any rules of our engagement and was present at all the scheduled meetings with officials in Nevada. Although PARNAS, FRUMAN, CORREIA, and Foreign National-l continued to meet into the spring of 2019, the Business Venture did not come to fruition.

Debra BorchardtApril 18, 2019


Acreage Holdings, Inc. (CSE: ACRG.U) (OTC: ACRGF) (FSE: 0ZV) announced that on April 17, its subsidiary, High Street Capital Partners agreed to acquire Nevada-based Deep Roots Medical in a deal valued at $120 million. The cash and stock transaction will mark Acreage’s entry into the Nevada market.

This deal plants another flag in Acreage’s growing empire bringing the footprint up to 20 (including pending acquisitions) making it the largest company in the US cannabis industry. The state is only home to three million residents, but the tourist population swells that number to 43 million. Arcview Market Research estimates that Nevada will generate nearly $800 million in legal cannabis sales by 2022.

Kevin Murphy, Founder, Chairman, and Chief Executive Officer of Acreage Holdings, Inc., commented, “We continue to deliver on our shareholder commitments to aggressively expand our presence in the West.  We could not be more excited for what we believe will become a leading operator in the state of Nevada, one of the most important states in the cannabis industry.”

Deal Terms

The total deal is valued at $120 million, including $100 million in common units of High Street Capital Partners, LLC and $20 million in cash.  High Street Capital Partners, LLC will issue up to 4,761,905 common units at a deemed value of $21.00 per unit.  Certain Deep Roots employees will have a portion of their issued common units be subject to a lock-up schedule.  The deal is expected to close in the second quarter of 2019.

Canopy Growth Acquisition

Both Acreage Holdings stock and Canopy Growth Inc. (CGC) stock rose yesterday on rumors that Canopy would acquire Acreage in a multi-billion deal. On Thursday morning, the companies jointly announced that they had reached an agreement for Canopy to acquire Acreage. Acreage shareholders will receive a payout of $300 million and will receive 0.5818 of a common share of Canopy for each Acreage Subordinate Voting Share held. The estimated valued of the deal is $3.4 billion.

Deep Roots Operations:

Deep Roots is a vertically integrated operation that includes cultivation, manufacturing & processing, a wholesale and distribution business, and seven retail dispensary licenses. The company described its operations as follows:

Cultivation: 18,000 SF of indoor flowering canopy for high-end flower housed in a 40,000 SF building in Mesquite, NV.

Manufacturing & Processing: Housed in the same 40,000 SF building in Mesquite, Deep Roots has a manufacturing facility and a butane extraction lab to produce their distillates and edibles.  The facility has ample space to build a Form Factory to expand its own internal house of brands throughout Nevada as well as other third-party brands it has agreements with.

Brands: Deep Roots currently manufactures and produces four internally developed brands.

  • Deep Roots utilizes its name for flower and concentrates and currently produces distillate cartridges, disposable pens, shatter, wax, and distillate for edibles, under the Deep Roots brand name.
  • Chillers hard candies has an extensive variety of flavors including watermelon, lemon, cinnamon, mango, and pineapple.  They are typically sold in a tube with ten hard candies, each containing 10mg of THC.
  • Bluebirds – a line of pre-rolled products that typically come in packs of one or three, made from various strains of Deep Roots’ high-quality flower.
  • Helix Twist – a line of gummies that come in six flavors including Sour Cherry, Key Lime, Blood Orange, Cucumber Serrano, and Ginger Peach.

Wholesale and distribution business: Deep Roots currently sells and distributes its Deep Roots, Chillers, Bluebirds, and Helix Twist branded products, and other third-party brands, into nearly 80% of the retail dispensaries in Nevada, making it one of the most connected wholesale operations in the state.

Retail Dispensary operations: Deep Roots has licenses to operate seven retail dispensaries, one of which is currently in operation, another is under construction, and five additional locations that are currently in development. Of the five remaining licenses to be developed, four are in the greater Las Vegas area and the fifth is in Reno.


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 SumnerOctober 30, 2018


What is the economic impact of adult use cannabis? In many U.S. states, that is a difficult question to answer. Hoping to divine the answer, the Nevada Dispensary Association (NDA), which represents approximately 80% of cannabis dispensaries in the state of Nevada, commissioned a report by RCG Economics to find out; and the results were surprising.

To fully ascertain the scope of the cannabis industry’s economic effect on Nevada’s economy, RCG implemented several strategies. To start, RCG electronically sent out a survey to NDA members; requesting information such as tax collections, gross sales, wages, benefits, and employment.

Next, RCG ran an economic benefits analysis (EBA) and compared the data to existing figures. An EBA typically involves analyzing direct benefits, indirect benefits, and induced benefits. Finally, RCG prepared a fiscal benefits analysis, which examined statistics such as state-level excises taxes, retail sales taxes, and the payroll tax.

After collating the data, RCG found that legalized cannabis will have a tremendous effect on the Nevadan economy.

Economic Benefits

Currently, adult use cannabis sales account for 63% of all cannabis sales in the states, while medical makes up the remaining 37%. Between 2018 and 2024, the state’s adult use cannabis industry is expected to generate an estimated $8 billion of economic activity.

Additionally, the industry is expected to support approximately 67,000 jobs in the same period. Cannabis regulations are also forecasted generate roughly $3.6 billion in direct, indirect, and induced labor income.

Direct spending in the cannabis industry is also projected during this period to have a multiplier effect of 1.63; which means that for every $1 spent on retail cannabis, another $0.63 will be generated throughout the state economy.

The retail cannabis industry is expected to produce approximately $989.7 million of total output activity in 2018 alone; representing roughly $60.7 million in sales. By 2024, that total is expected to rise to approximately $1.2 billion. Similarly, the industry is projected to support around 8,300 jobs in 2018, but by 2024 that number is expected to grow to 10,200.

Fiscal Benefits

Between 2018 and 2024, Nevada’s cannabis industry could potentially create roughly $1 billion in fiscal benefits for the state. The largest chunk of that figure is from sales and use tax accounts, which is projected to generate $349.4 million. The second largest contributor is the retail excise tax ($336.2 million) and the wholesale excise tax ($212.3 million).

For 2018, the industry is expected to generate approximately $113.1 million in fiscal benefits. By 2024, that number is expected to swell to $158.7 million annually.

RCG is quick to point out that these figures are only estimations based upon the available data and may change depending on outside economic factors. However, external economic factors or not, one thing is clear for the report, and that is that the legal cannabis industry will have a tremendous impact on the state of Nevada’s economy in the coming years.


Debra BorchardtAugust 7, 2018


New York-based cannabis-focused institutional fund Navy Capital Green International Ltd. invested $3 million of equity into  Nevada-based Oasis Cannabis. Oasis is an integrated cannabis producer and retailer in Nevada. It is also a subsidiary of CLS Holdings USA Inc., which operates as Cannabis Life Sciences.

Navy Capital said that it has an extreme interest in the CLS patented extraction and processing technology. According to the company statement, Navy Capital or select others may invest an additional two million with a 15% overallotment for a total of up to $5,750,000 by August 15, 2018.

“We believe CLS Holdings possesses the premier vertically-integrated cannabis business in Nevada and when combined with the company’s opportunities in other major U.S. states and its cutting-edge scientific developments, we expect that CLS quickly will establish itself as one of the top companies in the emerging U.S. cannabis market,” said John Kaden, Managing Partner and Chief Investment Officer of Navy Capital.

With this investment, CLS now has all the funds in place to complete its build-out of its Las Vegas cultivation and production facility. In addition, CLS will utilize a portion of the proceeds to update its existing Oasis Cannabis dispensary location and improve its signage.

Jeff Binder, Chief Executive Officer of CLS, commented, “We look forward to the added value that Navy Capital brings to CLS. It is a terrific corporate development to have an additional partner, of Navy Capital’s stature, and we are excited by the expertise they bring to CLS.”

Oasis Cannabis

Oasis Cannabis has operated a cannabis dispensary in the Las Vegas market since dispensaries first opened in Nevada in 2015 and has been recognized as one of the top marijuana retailers in the state. Its location within walking distance to the Las Vegas Strip and Downtown Las Vegas in combination with its delivery service to residents allows it to efficiently serve both locals and tourists in the Las Vegas area. The company recently commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products in August 2017.

Debra BorchardtJune 29, 2018


Nevada continues to crush it with cannabis sales. On July 1, the state will celebrate its “cannaversary” or one year since it began selling recreational marijuana. So far, each month sales have outpaced original projections.

According to state records, recreational sales hit $41 million in March, the highest month to date, a 16% sequential increase over February and breaking the previous record set in December of $35.8 million. Total taxable sales for medical marijuana, adult-use marijuana and other marijuana-related goods for the first ten months of the fiscal year are $433.51 million.  April sales were lower than March, but strong enough to deliver all the anticipated tax revenue two months ahead of scheduled said the state.

Taxes collected in the first fiscal year-to-date (July 2017-April 2018)  were $55.53 million with wholesale marijuana generating $21.47 million for that time period and retail marijuana tax generating $34.06 million. The state said that taxes collected are 110% above what was projected. Also, the launch of the adult-use industry now accounts for a bit more than 17% of the overall growth in Nevada’s taxable sales base so far this fiscal year.

“The Nevada market continues to be the bright spot in the cannabis industry,” said Chris Driessen of privately owned vape powerhouse Organa Brands. “I was most impressed with the state for adhering to the self-imposed timeline of July 1, 2017.”

Nevada Senator Tick Segerblom said, “This new industry has generated close to half a billion in sales and employed over 5,000 Nevadans. Best of all, none of the predicted adverse consequences have occurred.”

Still, Nevada’s program hasn’t been without its challenges. In the beginning, distribution issues caused businesses numerous headaches along with limited supplies. Driessen agreed saying that the biggest challenge has been the lack of raw material which as driven up production costs.

“This has been problematic for the state as Colorado, California, and Oregon all have far lower price points for similar products making Nevada less competitive,” he said. Dreissen went on to add, “The onerous packaging requirements have also been a big challenge and came as a surprise to us. While the requirements are simple enough on their own, the states arbitrary enforcement of what it deems to be “slang” or “jargon” has caused unnecessary costs and ultimately a burden on businesses due to random enforcement.”

Even with these issues, sales of almost a million dollars a day is drawing many companies to the state.

“All reports from Nevada are that the state has seen healthy sales since the start of commercial adult-use,” said Daniel Yi of California-based dispensary chain MedMen. “MedMen began operations at its Mustang cultivation and manufacturing facility in April, and we plan to have three stores in Las Vegas before year’s end. Nevada is key to MedMen’s strategy of gaining and maintaining a leadership position in all significant U.S. markets. Las Vegas also gives our brand global exposure.”


The state is gearing up for big celebrations like Reef Dispensary which is giving away hats, and prerolls and sponsoring a midnight firework show. In addition to the fireworks, the first 250 customers to make a purchase after 12AM on July 1st will be awarded the limited edition ‘Year 1’ hat, commemorating the first safe and successful year of recreational cannabis in Nevada.

Cannabition, the cannabis museum slated to open in August in downtown Las Vegas is celebrating with a scavenger hunt beginning at 4:20 pm on July 1. Cannabition will be the world’s only cannabis-themed experience of its kind. Opening Aug. 2 at Neonopolis in Downtown Las Vegas, Cannabition will feature elaborate cannabis-inspired installations created by leading experiential art and exhibit designers. The museum said that visitors will interact with unique monumental art pieces, including a slide that empties into a pool of handmade foam “nugs,” enormous 7-foot buds and, at 23 feet, the world’s largest water pipe affectionately known as “Bongzilla.”

Also on Sunday, July 1, The+Source will launch its new Prismatic products, made with highly-effective, flavorful and pure extract products. Using a modern CO2-based extraction process, the versatile products will retain the full spectrum of terpenes and cannabinoids without the harmful hydrocarbon solvents. The+Source is running a 10-day lineup of promotions called the Ten Days of Freedom.

The Las Vegas location will also host popular local cannabis vendors on Sunday, July 1, including Matrix Nevada, offering specials and giveaways from an airstream, and the Alternative Medicine Association. On Monday, July 9, the AMA will host a pop-up at the Las Vegas location and starting at 5 p.m. will host a meet and greet with rapper and former VP of Death Row Records, Kurupt.

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