Cannabis Briefs for January 24, 2023January 24, 2023
•Cannabis legalization has come to another U.S. territory. U.S. Virgin Islands governor Albert Bryan Jr. signed the law into effect last week, joining protectorates like Guam and the Northern Mariana Islands in allowing recreational possession and consumption. Adult-use cannabis remains outlawed in Puerto Rico and American Samoa. While the Virgin Islands have taken a first step, the regulations remain unfinished, adding time to the typical lag before sales begin, with commissioner for the Department of Licensing and Consumer Affairs Richard Evangelista estimating it will take two years to implement regulations, which have yet to be written, before the law bears fruit.
•New York-based cannabis producer Columbia Care is cutting staff in a bid toward profitability. The company announced it closed four unprofitable retail locations in California and Colorado and consolidated cultivation operations in California, Colorado, and Pennsylvania to improve their contribution to the adjusted EBITDA metric. These changes accompanied a 25% reduction in corporate headcount, which Columbia Care expects to result in a sustained improvement in a decreased cash burn. Columbia Care is in the process of being acquired by Cresco Labs, though that deal, announced last March and valued at $2 billion, has been pushed back and is now scheduled to close this coming March.
•Recreational cannabis sales soared in Michigan during the month of December, rising to a total of $208.3 million, according to a report from the state’s Cannabis Regulatory Agency. That figure was a new record and the first time sales crossed $200 million in one month, good for 32% growth from the same time a year earlier. The leading category was flower, which amounted to $99.3 million in sales last month, followed by vape products with $40.9 million and edibles at $24.6 million. The state now has more than 900 cannabis growers spread across its various license types and 609 retailers.
•Calgary, Alberta-based Decibel Cannabis Company saw strong sales in December, according to data from HiFyre Retail Analytics, which pushed it to the No.-3 ranked licensed producer in Canada. The company’s premium cannabis products, sold under the brands Qwest, Blendcraft, Prairie Records, and General Admission, achieved 6.7% share of the national market. Decibel’s gains were driven by strong performance in the vape and pre-roll categories, in both of which it holds the No.-1 ranking in Canada, at 17.7% and 11.8% market share, respectively.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.
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