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Cannabis Briefs for June 16, 2020

June 16, 2020

•Illinois’ recreational cannabis market set a new record in May with transactions totaling more than $44 million for the month. Sales in the state have hovered somewhere between $30 and $40 million each month. January’s opening salvo of $39 million has held the top spot, until now. After a slump in February, sales have been building amid quarantine, with April’s sales reaching $37.2 million. Approximately $34 million of May’s total was spent by state residents and $10 million came from border jumpers, according to the Illinois Department of Financial and Professional Regulation. An additional $32 million was spent in Illinois’ medical market, keeping it on pace to set an annual record this year as well.

•High Times has trimmed its planned acquisition of a number of California dispensaries from Harvest Health. Under the amended agreement, High Times will acquire 10 properties for $67.5 million. When originally announced in late April, the deal was to include 13 properties and be worth $80 million. The amended transaction remains subject to various closing conditions including third party and regulatory approvals.

•Rapper and actor Method Man is launching a cannabis brand with the goal of increasing African American ownership in the industry. Named Tical after his debut solo album, the company will supply cannabis to an initial four dispensaries owned by African Americans in California. The brand will launch with three cannabis strains, named Cake, Gelato, and Crusher, developed in partnership with California-based cultivation company Clone Guy Industries. In addition to his solo career and place in the Wu-Tang Clan, Method Man also memorably portrayed the character Cheese on the HBO program The Wire.

•Colorado’s cannabis sales fell 7.8% to $148.5 million in April, down from $161 million a month earlier, as the annual 4/20 cannabis holiday appeared to be slowed by stay-at-home orders due to Covid-19. While medical cannabis sales increased 11% to $36.5 million, according to local publication Westword, adult-use sales declined by 12.5% to $112 million for the month. The Colorado state department of revenue added that sales are expected to be down for calendar 2020, with the impact of Covid-19 upsetting typical purchasing patterns.

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