Cannabis Briefs for January 31, 2023

•New York-based Ascend Wellness is acquiring the Maryland assets of Devi Holdings. Devi owns and operates four dispensaries in the state’s medical market under the names Nature’s Medicines and True Wellness. The deal is valued at $19 million, with $12 million paid in cash and $7 million in Ascend shares. The move will bring Ascend’s operations to a seventh state, joining New Jersey, Illinois, and Pennsylvania, among others. “We considered this transaction worthy given the attractive valuation, existing run rate sales of $17 million, and $3 million of real estate included in the transaction,” said Dan Neville, CFO and interim co-CEO of Ascend.

•New York State’s Office of Cannabis Management (OCM) issued another 30 licenses for recreational retail locations. That brings the number of licenses awarded up to 66, though 64 of those remain pending as only two adult-use dispensaries have opened so far, both in Manhattan. Of the new batch the OCM issued, 16 were for New York City.

•Miami, Florida-based Ayr Wellness canceled its planned acquisition of Chicago-based Dispensary 33. Originally announced in November 2021, the deal would have seen Ayr pay $55 million for Dispensary 33’s assets and two Chicago retail locations. “The cannabis market has changed significantly in the 15 months since we agreed to acquire Dispensary 33. Both parties have acknowledged this reality and engaged in good faith dialogue as we came to the mutual decision to terminate the proposed arrangement,” said David Goubert, president of Ayr.

•California’s Department of Cannabis Control (DCC) is exploring the legal grounds for interstate cannabis commerce. In a letter sent to the state Attorney’s General office seeking its opinion on the viability of such a development, the DCC notes that recent legislation has removed state-level restrictions on interstate cannabis commerce, making the only remaining roadblock the federal Controlled Substances Act, which prohibits the practice. The letter further states that the DCC’s own opinion is that the state is not put in legal jeopardy by allowing business with licensees in other states: “Under the U.S. Constitution’s anti-commandeering principle, the Controlled Substances Act could not criminalize the State’s legalization and regulation of commercial cannabis activity with out-of-state licensees.” The state Attorney General’s opinion is not yet public, but this could mark a significant step toward a true national cannabis market.

Tagged : Ayr Wellness, cannabis, Devi, Dispensary 33, Nature's Medicines, True Wellness

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