Ohio Archives - Green Market Report

Debra BorchardtFebruary 9, 2022
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Ohio-based Klutch Cannabis looks to have raised $10 million as the producer is keen on securing licenses. According to Pitchbook, the company raised $10.9 million as of February 1, 2022. It is said to be convertible debt financing from undisclosed investors and the funding will be converted to Series C, D, and E. It could be money that is anticipating Klutch winning some dispensary licenses. Klutch currently possesses cultivation and processing licenses but the company wasn’t able to secure a dispensary license during the original process in 2018. Klutch did not respond to a request for confirmation of the capital raise.

Founder Adam Thomarios apparently decided to take no chances and ultimately entered 73 dispensary applications all across the state of Ohio. According to Cannabiz Media the applications are under the name Citizen Real Estate LLC. Considering that each application costs $5,000, it didn’t take long for the competition to see that Klutch spent $365,000 just on the paperwork. That’s a big flex for an up-and-coming cannabis company. It’s also a big gamble for a limited number of licenses. The state of Ohio has a five dispensary cap and limits within each dispensary district on how many new licenses are even available.

“The only way that we could be competitive in that kind of process was to be very aggressive and find good real estate that was valuable and we believe we accomplished that,” said Thomarios to News 5 in Cleveland. Klutch has said that it thinks it can get at least three dispensaries through this process.

Klutch Cannabis is a cultivator and processor that was founded in April of 2020 in Akron, Ohio. AT-CPC LLC was the original name of the company that did business as Klutch. It was a subsidiary of Calyx Peak Companies, which operates cannabis-related operations in California, and Nevada but in 2020 AT-CPC of Ohio separated from Calyx and rebranded under the name Klutch Cannabis.

The company says it cultivates a host of rare, coveted, and award-winning phenotypes under its Klutch Cannabis and Klutch Select brands, and markets cannabis-infused wellness products under its Klutch Mind and Body brand. Klutch also holds Ohio-exclusive partnerships with California-born Kiva Confections, bringing Kiva’s industry-leading, premier line of award-winning and artisan-inspired edibles to Ohio, along with the lauded cannabis brand Josh D, founded by one of the originators of Los Angeles’ OG Kush movement and first-place finisher at the 2019 Emerald Cup in the Licensed Mixed Lighting Flower Category.


Debra BorchardtOctober 4, 2021
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Ascend Wellness Holdings, Inc.  (AWH) (OTCQX: AAWH) has staked its claim in Ohio after completing its acquisition of BCCO, LLC, which operates a medical dispensary in Carroll, Ohio. Ascend also said it was buying Ohio Cannabis Clinic, LLC, which operates a medical dispensary in Coshocton, Ohio. Ohio is a medical-only market at this time and recorded $200 million in sales in 2020. It is estimated by Arcview that sales could reach $600 million in 2025. Jefferies estimates that 2020 legal and illicit market sales reached approximately $2.7 billion, making Ohio the 3rd largest market that is only legalized for medical.

“We are thrilled to officially expand our vertically integrated footprint in the rapidly maturing Ohio market,” said Abner Kurtin, CEO and Chairman of AWH. “With adult-use legislation currently under consideration, now is an opportune time to scale our footprint while continuing to provide medical patients with the high-quality products and service they have come to expect from us. By investing in key regions ahead of regulatory events, we have positioned AWH for long-term, sustainable growth in the most attractive markets in the U.S.”  Kurtin added, “We remain focused on disciplined capital allocation and are proud to have completed these acquisitions at multiples that are significantly accretive on a forward-looking basis.”

At this time Ascend stated it had the following portfolio within Ohio:

  • Carroll, OH medical dispensary, currently operating under the Ohio Provisions retail brand and is located approximately 25 miles southeast of Columbus.
  • Coshocton, Ohio dispensary, which is pending close and currently operating under the Ohio Cannabis Company brand and is 77 miles northeast of Columbus.
  • Monroe, OH cultivation facility, which closed in May 2021, and affords the Company the opportunity to expand cultivation capacity.
  • Monroe, OH processing facility, the Company previously entered into an agreement with Marichron Pharma, LLC and intends to submit the transaction for state approval once permitted to under state regulations.

AWH said it plans to transition both the Ohio Provisions and the Ohio Cannabis Company brands over to the AWH brand by year-end. It seems Ascend isn’t finished with its Ohio plans. The company said it expects to expand to the state-imposed 5 dispensary cap limit.

Competition

Other big-name cannabis companies have flocked to Ohio as well. A list of dispensaries includes Acreage Holding’s The Botanist and Green Thumb Industries brand Rise. Earlier this year, Cresco Labs (OTCQX: CRLBF)  acquired Verdant Creations dispensaries in Cincinnati, Chillicothe, Newark and Marion, Ohio. These acquisitions give Cresco four additional dispensaries, bringing its dispensary presence in Ohio to five – the maximum allowed by the state.

Legalization

According to Marijuana Moment, “Ohio activists have cleared a final hurdle to begin collecting signatures for a 2022 ballot initiative to legalize marijuana in the state.” The site reported that the new initiative is a statutory proposal. “If supporters collect 132,887 valid signatures from registered voters, the legislature will then have four months to adopt the measure, reject it or adopt an amended version. If lawmakers do not pass the proposal, organizers will then need to collect an additional 132,887 signatures to place the proposal before voters on the ballot in 2022.”

“We’re happy with today’s outcome and believe the ballot board made the right call on this one,” CTRMLA spokesperson Tom Haren said in a press release. “We look forward to beginning the signature collection process and working with our state legislators to create a safe, legal, and highly regulated cannabis market in Ohio.”

 


Video StaffJanuary 18, 2019

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Green Market Report asks that you sign up as a sponsor on our Patreon page and let’s keep the news alive and unbiased.

Also, Green Market Report released its fourth quarter review on the Cannabis Company Index. Head to the website and read what is one of GMR’s most popular reports.

Ohio began sales of medical marijuana this week. Sales were reported as brisk and lines were long, but the patients said they were happy and supplies held out. Acreage Holdings (CSE: ACRG.U) and Greenleaf Apothecaries both opened dispensaries

New York Governor Cuomo said he hoped to have adult cannabis legalized within 100 days. That doesn’t mean products will be for sale in a few months, it just means legislation could happen. Expect several more months before any retail stores open.

This week, Tilray (TLRY)  signed a $100 million deal with Authentic Brands to provide CBD for any of the company’s product lines. Authentic licenses companies like Nine West and Juicy Couture. This comes just one week after DSW said it was working with Green Growth Brands  to sell its CBD products

MedMen released its unaudited revenue figures for its second fiscal quarter. systemwide revenue increased 40% sequentially to $29.9 million. The company said that if it included pending acquisitions that revenue number would be $49.5 million. Official results will be posted in February.

TILT closed the Jupiter and Blackbird transactions this week. Through Jupiter, TILT has a “bird in the hand” vape hardware business expected to drive roughly $200m in revenues in 2019 as vape demand continues to accelerate. Blackbird brings wholesale distribution capabilities in CA and NV that can be propagated into additional markets as well as leveraged longer term with the company’s Baker CRM to expand TILT’s wholesale footprint.”

Golden Leaf terminated its plan to buy Sweet 16 license.

HEXO Corp. said that its common shares have been approved for listing on the NYSE and will begin trading at the open of markets on January 23. HEXO’s shares will trade on the NYSE American under the ticker symbol “HEXO”, the same symbol the Company’s common shares currently trade under, and will continue to trade under, on the Toronto Stock Exchange.


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