Cannabis Briefs for May 17, 2022May 17, 2022
•Recreational cannabis sales in Michigan experienced a huge upswing in April as they grew to nearly $168 million for the month. That’s a month-over-month improvement of more than $45 million from March’s total of $121.2 million and sets the all-time single-month record by more than $20 million. Last month, Michigan consumers spent $84.7 million on flower, $34.6 million on vape cartridges, $19.8 million on edibles, $12.7 million on shake and trim, and $11.8 million on concentrates, with other smaller categories making up the rest. Most impressively, this sales record coincides with an all-time low on the price of cannabis, which has fallen amid increased supply to just over $2,100 a pound. An additional $27 million of cannabis was sold in the state’s medical market in the month of April.
•California cannabis player Glass House Brands has entered agreements to acquire three more dispensaries in the Golden State. Two of them come from the Natural Healing Center chain and are located in Lemoore and Morro Bay, California. Glass House will pay $22.6 million for them, split into $5.7 million cash and the rest in shares. The two stores had revenue of $15.3 million from April 2021 through March 2022. The third store, located in Turlock, California, is still under construction and is expected to open in the third quarter of the year. Calculation and payment of consideration will occur at the end of its sixth full quarter of operations, pegged at six times its annualized EBITDA in that quarter. Glass House went public last year via a merger with SPAC company Mercer Park.
•Tallahassee, Florida-based Trulieve reported results for the quarter ended in March, in which revenue was up 4% sequentially to $318.3 million. The company achieved gross profit of $178.2 million, up approximately $46 million from the previous quarter. It logged a net loss of $32 million, which excludes $17.2 million of non-recurring charges associated with its acquisition of Harvest Health and Recreation. Trulieve is now present in 11 states, with 30% of its retail locations located outside Florida.
•Twenty-four U.S. senators signed a letter calling on congressional leaders to pass the SAFE Banking Act. The bill would open banking and other financial services to the cannabis industry. The bipartisan group of senators, led by Jeff Merkley and Jacky Rosen, are asking that the provisions be included in the America Competes Act. The SAFE Banking Act has previously passed in the House of Representatives; it now has 42 co-sponsors in the Senate.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.