Cannabis Briefs for August 15, 2023

•Recreational cannabis sales in Michigan set a new record last month when they reached $270.6 million, according to a monthly report from the state’s Cannabis Regulatory Agency. July’s total was $16 million above June’s haul of $254.1 million. Flower accounted for around half of the sales total at $126 million (plus $23.9 million of the less desirable shake and trim category). Vape cartridges accounted for $51.7 million, various types of concentrate combined for $39.7 million, and edibles were worth $27.3 million. Michigan’s medical market contributed an additional $6.1 million in sales. The state currently has around 1,000 active licenses for cannabis growers of various types, 236 processors, and 704 retailers.

•New York-based Ascend Wellness reported earnings for the three months ending June 30, in which net revenue was up 7.7% quarter-over-quarter to $123 million. That growth was driven by both the retail and wholesale sides of the business, with retail revenue up 8.6% to $89.9 million and gross wholesale revenue up 4.7% to $61.2 million. During the quarter the company appointed John Hartmann as permanent CEO and acquired four dispensaries in Maryland, which opened to the public after the end of the quarter.

•Chicago-based Verano Holdings also reported earnings for the quarter ended June 30. It logged record revenue of $234.1 million, up 5% from $227 million in the prior quarter. Gross profit was $115 million, or 49% of revenue, and adjusted EBITDA was $72 million, or 31% of revenue. The company’s gains were driven by strength in the retail and wholesale markets in New Jersey and Connecticut, offset slightly by retail declines in Pennsylvania and Arizona. Verano boasts 70 retail locations in Florida alone and has active operations in 13 states with 132 dispensaries and 14 cultivation and processing facilities.

•Recreational cannabis sales continued to rise in Connecticut, a consistent streak since the market launched in January, according to the state’s Department of Consumer Protection. The adult-use market overtook medical use in May and reached a new high last month of $13 million. Medical sales have fallen around $2 million from a March high point of $12.5 million to $10.6 million in July. So far this year recreational sales total $146 million, with 53% of that going to flower ($77.2 million), followed by vapes at 26% ($38 million) and edibles at 10% ($14.5 million). The state’s homegrow provision also went into effect on July 1, one of the last components of legalization to come online.

•A cannabis legalization ballot measure is awaiting final certification in Ohio. The initiative is backed by the Coalition to Regulate Marijuana Like Alcohol. The measure would legalize possession and would allow for homegrowing up to six plants. A 10% sales tax would be imposed. A poll last month found that 59% of Ohioans favor legalizing cannabis, with only 35% opposed.

Tagged : Ascend Wellness, cannabis, Verano Holdings

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