🗽WE(ED) THE PEOPLE
The [cannabis] state of the union
As an increasing number of states implement their own flavour of cannabis reform, it can be tricky keeping track of all of the past year’s action. Let’s review, with help from Forbes.
The states that legalized adult-use in 2021:
- Connecticut
- New Mexico
- New Jersey
- New York
- Virginia
Federal reform efforts:
- The Safe Banking Act passed the House for the fifth time, but didn’t make it through the Senate
- Senate Majority Leader Chuck Schumer, Sens. Ron Wyden and Cory Booker introduced the Cannabis Administration and Opportunity Act, which emphasizes equity
- Republican Congresswoman Nancy Mace introduced the business-friendly States Reform Act
The tally
- 18 states allow adult-use
- 36 have legalized medical cannabis
- Legal sales hit $25 billion in 2021
The takeaway
“This is such an early-stage industry, every year should be a landmark year at this point,” said analyst Matt McGinley. “The industry will still have a very strong growth rate and we’ll see a number of key markets come online for adult-use in 2022 or set conditions for adult-use in 2023.”
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🤷 WHO WHO WHO?
State legalization watch 2022
More states are expected to implement some level of cannabis reform in 2022, reports MJBizDaily.
Adult-use watch list
- Rhode Island
- Maryland
- Minnesota
- Ohio
- New Hampshire
- Delaware
- Pennsylvania
- Hawaii
Medical watch list
- Mississippi
- South Carolina
- North Carolina
- Kansas
A LITTLE 📈 AND A LITTLE 📉
Tilray posts Q2 profit despite sales slip
Its market share may have slid from 17% to 10% since merging with Aphria, but Tilray managed to post a profit this past quarter, reports BNN Bloomberg.
The Q2 highlights
- US $155 million in revenues
- cannabis, drinks, wellness divisions reported a year-over-year increase
- US $13.8 million EBITDA
- US $6 million “repricing of its corporate bonds” helped create a $6 million net profit
- Sales fell by approximately 15%
Price crunch
While prices have fallen by 22.6% industry-wide, Tilray hasn’t discounted its products to the same extent. “”I think a lot of those companies have done a great job getting [marlet] share, but can they continue to drop prices?” CEO Irwin Simon said on the analyst call.
⌚TIC TOC
London Stock Exchange’s first cultivator listing delayed
Greece’s Hellenic Dynamics, which was planning to be the first cannabis cultivator to list on the London Stock Exchange (LSE) last October, is now saying its IPO will launch later this month, reports BusinessCann.
The reason? Rigorous requirements from the Financial Conduct Authority.
“It’s taken a little bit longer with the opinions and everything, but so far the FCA seems pleased with everything that we provided and we are looking forward to listing I think probably early January,” said VP Davinder Rai in an update.
