Cannabis Briefs for July 27, 2021July 27, 2021
•Atlanta, Georgia-based Kill Cliff has entered a distribution agreement with Southern Glazer’s Wine & Spirits to handle its line of CBD drinks. Founded by a former Navy SEAL, the brand features patriotic branding across its CBD drinks, which come in a variety of flavors including Orange Kush, Mango Tango, and leader Flaming Joe, made in partnership with Joe Rogan (all 25mg a can). Southern Glazer’s will help drive retail growth for Kill Cliff.
•New York City-based Ayr Wellness will acquire Illinois-based Herbal Remedies Dispensaries, adding an eighth state to its national footprint. Ayr will pay $30 million to purchase Herbal in full, acquiring two recreational dispensaries in Quincy, Illinois. The transaction will be made up of $10 million in stock, $12 million in seller notes, and $8 million in cash. Ayr is present in Nevada, Arizona, Florida, Ohio, Pennsylvania, and Massachusetts, and expects to have more than 60 dispensaries open by the end of the year.
•Chicago, Illinois-based Verano Holdings is expanding its operations in Nevada with the acquisition of Sierra Well for $29 million. The deal includes two dispensaries, in Reno and Carson City, as well as a 10,000 square foot cultivation and production facility, also in Reno. The transaction will be completed with $5.6 million in cash and the rest in Verano shares. Verano’s portfolio now includes nearly 80 operational dispensaries and 10 cultivation sites across 11 states.
•The Colorado Department of Public Safety released a comprehensive report detailing the effects of cannabis legalization since it went into effect in 2014. The 200-page document, which compiled data from numerous state and federal agencies, found that Colorado dispensaries totaled nearly $2.2 billion in sales last year, generating $387.5 million in 2020 tax revenue. Cannabis arrests are down 68% through 2019, from 13,225 to 4,290 annually, though racial disparities remain present. Cannabis use rose over the period, from 13.4% of adults reporting use in the last month in 2014 to 19% doing so in 2019. Use rates among minors were essentially unchanged, with 20.6% reporting use in the last month in 2019, up from 19.4% in 2017.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.