Cannabis Briefs for February 22, 2022February 22, 2022
•Virginia’s state Senate approved a bill that would move up the start date of adult-use cannabis sales from 2024 to September of this year. The bill still needs to clear the state House of Representatives and be signed by governor Glenn Youngkin but, as written, the bill would allow certain medical cannabis providers to open their doors to the general public beginning September 15, until the full market launches as planned in January 2024. The bill also fills out the full regulatory framework for legalization, a necessity after lawmakers last year legalized simple possession without working out the full details.
•Toronto-based Cronos Group reported earnings for the three months ending September 30, in which net revenue rose 30% sequentially to $20.4 million. Of that figure, $2.1 million came from the U.S. while $18.3 million came from the rest of the world. The company’s adjusted EBITDA improved slightly to a loss of $46.8 million. Like many Canadian producers, Cronos is working on a reorganization to streamline costs, which it expects to deliver $20 million to $25 million in savings this year.
•New York governor Kathy Hochul signed a bill that will allow hemp farmers in the state to grow, process, and distribute recreational cannabis. The bill is intended to help on two fronts: to build up supply in advance of the launch of recreational sales and to advance the program’s social equity goals. As part of the second goal, the measure includes language for providing mentorship to minority farmers. The Office of Cannabis Management (OCM) now expects licensing to begin around October of this year, based on recent comments from OCM executive director Chris Alexander at a Cornell University law program webinar.
•Monthly cannabis sales in Canada rose 8.5% in December to a record high of C$382.4 million ($300m). As usual, Ontario contributed the bulk of those sales with C$155 million ($122m). Alberta logged C$65.7 million ($52m), Quebec C$55.6 million ($44m), and British Columbia C$52.3 million ($41m), with other provinces making up the remainder. Market research firm Hifyre IQ estimated that 46.7% of sales went to flower, 23.3% went to pre-rolled joints, and 14.3% were for vape products.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.