Cannabis Briefs for January 26, 2021

•Chicago, Illinois-based Cresco Labs has appointed Ty Gent as COO. Gent brings a wealth of CPG experience to the company as he joins from US Foods, where he was chief supply chain officer. Previously he spent 30 years with PepsiCo in various executive management roles including senior vice president of operations and senior president of logistics. As Cresco COO he will be responsible for operational consistency and efficiency across its disparate markets and implementing structural changes to help the company further scale up operations. Concurrently, former COO David Ellis is taking on the role of regional president of operations for emerging markets, looking to replicate the company’s success in Illinois, Pennsylvania, and California in Massachusetts, New York, Ohio, and Maryland.

•New York governor Andrew Cuomo has released the full policy details for his plan to legalize recreational cannabis. Under his plan, home-growing would not be allowed, even for medical consumers. Cannabis would be subject to wholesale taxes based on THC levels as well as a 10.25% surcharge tax on the final retail price, in addition to applicable state and local taxes. The bill does not create licenses for cannabis delivery or on-site consumption spaces but leaves as a possibility their creation later by the Office of Cannabis Management; notably, the bill would create a license type for events to be catered with cannabis products. Cuomo’s proposal will be in consideration with separate legalization legislation filed by state lawmakers—how the two plans are to be reconciled is the key question moving forward.

•Former Cresco Labs president Joe Caltabiano is leading a new special purpose acquisition corporation (SPAC) focused on the cannabis industry. He is joined by former Cresco CFO Ken Amann and former Green Thumb Industries CEO Peter Kadens in launching Choice Consolidation, which filed a preliminary prospectus for a $100 million IPO. According to the filing, the company will seek to acquire cannabis companies in markets with significant barriers to entry and high operating margins—looking to dominate markets before other companies get to them.

•Rapper Lil Wayne’s cannabis brand, GKUA Ultra Premium, is expanding to Colorado. The brand launched in California in late 2019, sourcing flower from highly limited and potent strains that contain high levels of THC. The product line also includes oils and concentrates produced in Colorado in partnership with Harmony Extracts. The launch will be supported by a live event on Instagram hosted by Lil Twist, another musician signed to Wayne’s record label.

Tagged : cannabis, Cresco Labs, GKUA Ultra Premium

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