Since its inception in 2014, Washington state’s cannabis market has become one of the largest and most competitive cannabis markets in the country.
Washington state was one of the first US states to legalize recreational cannabis and establish a regulated market for cannabis products. Washington state has a population of 7.53 million, and at least 14 percent of the adult population has used cannabis in the past month, according to 2016 statistics via the Washington State Department of Health. This makes Washington one of North America’s most important cannabis markets. As the cannabis market matures, companies with established businesses in the state are well-positioned to capitalize on growth in the overall US market.
Cannabis market and prices
Washington’s cannabis market generated revenues of US$1.49 billion in 2017, bringing in US$341 million in excise taxes for the state. The state’s sales are projected to reach US$2.28 billion by 2020, according to New Frontier Data, driven by competitive prices and high-quality products that are expected to lure consumers away from the black market in favor of legal cannabis products.
This INNspired Article is brought to you by:4Front Ventures (CSE:FFNT, OTCQX:CNXXF)Â is well on its way to becoming a leading vertically integrated multi-state cannabis company specializing in boutique cultivation, extraction and manufacturing as well as brand development, distribution and retail.Send me an Investor Kit
A recent study by the Oxford Treatment Center indicates that Washington has some of the cheapest legal cannabis prices in the country, with the average cost of high-quality cannabis pegged at US$232.90 per ounce. That’s compared to Oregon at US$201.75 per ounce, Colorado at US$241.74 per ounce and Massachusetts at US$341 per ounce — the highest price for legal cannabis. Washington also comes in well below the national average of US$326 per ounce.
Signs Washington’s cannabis regulations are evolving
While Oregon’s low price environment is linked to an oversupply problem, in Washington the low prices are viewed as a result of over-regulation. Washington’s state government crafted strict regulations in an effort not to provoke a standoff with federal law enforcement.
Under Washington state marijuana law, licenses are divided into three categories: producers, processors and retailers. Cannabis businesses in the state are permitted to hold both producer and processor licenses, but those growing and/or processing cannabis products cannot hold a retail license.
The state is one of the few in the country to not allow vertical integration. The Washington state law prohibiting vertical integration is tied to laws governing the production and sale of liquor following prohibition, said Rick Garza, agency director of the Washington State Liquor and Cannabis Board (WSLCB), who acknowledged that the regulation may be placing a strain on the cannabis market.
Today, there are 1,054 producer/processor licensed businesses in addition to 151 that are solely licensed for production and 221 licensed processors. However, only 523 cannabis retail shops are in operation across the state, and officials have temporarily stopped issuing any further licenses for retailers, growers and processors.
“The uneven marketplace has forced farms to compete with each other to get their products on to retail shelves, dropping the price of pot down with it,” Lester Black wrote in Seattle-based newspaper The Stranger. Black based his conclusion on a recent report by data firm Headset, which found that the average cost of cannabis product in Washington is less than half of that in California. The firm’s analysts tied that large gap to the wide disparity between the number of producers and retailers in the state. The low price environment has led many of Washington’s cannabis producers to underutilize their canopy space by as much as half in some cases, according to a recent WSLCB survey.
Washington’s cannabis industry leaders have spoken out about the impact over-regulation has had on the market, and recent proposals by regulators make it appear as if those concerns are being heard. The WSLCB and state legislators are considering allowing direct-to-consumer sales at cannabis farms similar to the winery and brewery model — cultivators could open up their properties for tours and sell cannabis products directly to customers. Washington wineries and breweries are also allowed to ship alcohol via mail to in-state customers as well as sell limited products at farmer’s markets.
There is still no indication if a direct-to-consumer cannabis sales model would follow suit, but it is a good sign that regulators are looking to a more open market in the future.
Addressing funding challenges through legislation
With cannabis remaining illegal at the federal level, cannabis businesses operating in legal states like Washington have found it difficult to secure funding. However, legislative amendments at both the state level and the federal level have the potential to open up access to much-needed capital. The Washington State Legislature is considering easing restrictions on cannabis licensees to allow for up to 40 percent of a company’s ownership to be held by out-of-state investors if the businesses permit their employees to unionize. License holders with unionized workforces would also be allowed two additional licenses.
Although a handful of banks and credit unions do serve cannabis license holders in Washington, most banking institutions are wary to work with cannabis companies considering the federal ban on the product. Last summer, Washington and 12 other legal cannabis states sent a letter to US Congress that prompted legislators to grant safe harbor for financial firms serving legally licensed cannabis business in their jurisdictions.
The recent lobbying has led to the re-introduction of the Secure and Fair Enforcement (SAFE) Banking Act in the US Senate with 20 bipartisan co-sponsors. The SAFE Banking Act would protect financial institutions working with state-legal cannabis-related businesses from federal prosecution. The STATES Act of 2019 offers an even broader safety net than SAFE, with an amendment to the Controlled Substances Act that would restrict federal enforcement against state-licensed cannabis businesses or other related enterprises.
Washington state cannabis businesses becoming multi-state operators
While Washington’s legal cannabis framework may have more restrictions than other key US cannabis markets like Colorado and California, the state’s more established cannabis licensees could be well-positioned for success, especially if they adopt a diversified, multi-state operator model.
“Colorado is reactionary. It’s tailored as the problems emerge, while Washington has tried to anticipate problems and structure its regulations in advance,” said Joshua Ashby, cannabis practice chair at the Seattle law firm Lane Powell. Ashby believes this could place Washington cannabis companies at an advantage when they expand their businesses into other states.
Cannex Capital Holdings, now 4Front Ventures (CSE:FFNT,OTCQX:CNXXF) has deep roots in Washington state, where it owns the assets of Northwest Cannabis Solutions, one of the largest brands by market share and one of the most profitable cultivators and processors in the state.
“Washington also sits with Colorado and Oregon as one of the most competitive states in terms of suppliers and cultivator-processors. It’s a very competitive market to operate within. But even with this competition, we’ve continued to be a leader in the Washington market, controlling approximately 9 percent of the wholesale market,” Cannex Capital CEO Anthony Dutton told Investing News Network.
Dutton acknowledged that Washington’s licensing structure doesn’t permit vertical integration, which is why Cannex is adopting a multi-state operator approach to diversify its cannabis portfolio into additional states.
Cannex recently signed a deal to acquire 4Front Holdings, which has vertically integrated operations in multiple states, including Arizona, Illinois, Maryland, Massachusetts and Pennsylvania. 4Front has an established retail and distribution network with cultivation and processing facilities as well as retail dispensaries. Cannex also has plans in its mergers and acquisitions pipeline to expand into Michigan, Arizona, Nevada and California.
Other Washington state cannabis companies becoming multi-state operators include Chemistree Technology (CSE:CHM,OTCQB:CHMJF) and IONIC Brands (CSE:IONC,FRA:1B3). After its success with the Sugarleaf brand in Washington, Chemistree is now expanding into California with a 9.55 acre cultivation facility in Desert Hot Springs. IONIC Brands is the number one vaporizer brand in Washington and has expanded its reach in the west coast through operations in Oregon and California. The company’s recent acquisition of Washington-based Zoots to its portfolio gives IONIC access to markets in Illinois, Colorado and Massachusetts as well.
The cannabis market in Washington, one of the first US jurisdictions to legalize recreational cannabis, continues to mature and open up more opportunities for cannabis business. With a well-regulated framework for cultivation, processing and retail, the state offers an excellent base for established cannabis companies looking to launch their brand into the national spotlight.
This INNSpired article is sponsored by 4Front Ventures (CSE:FFNT,OTCQX:CNXXF). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by 4Front Ventures in order to help investors learn more about the company. 4Front Ventures is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with 4Front Ventures and seek advice from a qualified investment advisor.
Ayurcann Holdings Corp. (CSE: AYUR) (the “Company” or “Ayurcann”) an integrated Canadian extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, announces the granting of stock options and restricted share units.
The Company has announced that it has granted incentive stock options to directors, officers, employees and consultants of the Company to purchase an aggregate of 1,000,100 common shares under the Company’s Stock Option Plan. Each option is exercisable at a price of $0.16 per common share, expires three years from the date of grant and vest six months from the date of the grant.
The Company has also granted restricted share unit grants, pursuant to the Company’s Restricted Share Unit plan, dated April 1, 2021, totaling 1,548,875 to certain eligible participants.
For further information, please contact:
Igal Sudman, Chairman, Chief Executive Officer and Corporate Secretary
Ayurcann Holdings Corp.
About Ayurcann Holdings Corp.:
Ayurcann is a leading post-harvest solution provider with a focus on providing and creating custom processes and pharma grade products for the adult use and medical cannabis industry in Canada. Ayurcann is focused on becoming the partner of choice for leading Canadian cannabis brands by providing best-in-class, proprietary services including ethanol extraction, formulation, product development and custom manufacturing.
Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.
News Provided by GlobeNewswire via QuoteMedia
A planned business merger between two leading cannabis producers hit a small delay this week as a critical vote got moved.
Keep reading to find out more cannabis highlights from the past five days.
Tilray delays critical shareholder meeting
On Thursday (April 15), Tilray (NASDAQ:TLRY) announced it will be postponing its shareholder vote on the fate of its merger with Aphria (NASDAQ:APHA,TSX:APHA). It will take place on April 30 instead of April 16.
Neither cannabis company offered an explanation for the change. Tilray has asked shareholders to participate in this vote regardless of how many shares they may hold. “Tilray stockholders who have not already voted, or wish to change their vote, are strongly encouraged to do so,” the company said.
This news came days after Aphria shareholders overwhelmingly voted in favor of the business transaction, with a total of 99.38 percent of shareholders voting for the deal to continue. Confirmation from Aphria Chairman and CEO Irwin Simon indicated the partnership was en route to being complete.
This past week Aphria also released financial results for the third quarter of its 2021 fiscal year, in which the firm highlights the overall direction of the company with the Tilray deal.
“We expect to have a tremendous runway for long-term sustainable growth as we build upon our existing foundation in Canada and internationally by increasing the scale of our global operations,” Simon said in a statement.
Cannabis retailer celebrates digital trend
Bidding for the piece, named “Non-Fungible Toke“ started at a price of C$4.20. The retailer plans to donate the proceeds to two charities, Second Harvest and Less.
The latter is designed to counter the carbon footprint of blockchain technology, a common criticism drawn against the rise of NFTs and other novel technologies.
As of 11:00 a.m. EST on Friday (April 16), the NFT bid was up to C$169.11.
Cannabis company news
- The Valens Company (TSX:VLNS,OTCQX:VLNCF) issued its financial report for the first quarter of its 2021 fiscal year. In its results, the company highlights a net revenue uptick of 24.7 percent from the previous quarter, resulting in C$20 million for the period.
- Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF) closed a public offering of 5 million subordinate voting shares at a price of C$50 each for total gross proceeds of C$287.5 million. The company celebrated its financial position after an offering in January, which will lead to the pursuit of merger and acquisition targets.
- Australis Capital (CSE:AUSA,OTCQB:AUSAF) appointed Jason Dyck as its new chief science officer and chairman of the firm’s scientific advisory board. Dyck previously served as an executive at Aurora Cannabis (NASDAQ:ACB,TSX:ACB), leading the scientific efforts for the cannabis producer. “I look forward to providing AUSA with advice and direction in its scientific efforts towards bringing innovations to market with immediate and significant commercial appeal,” Dyck said.
- Truss Beverage, a cannabis drinks venture co-owned by Molson Coors Beverage Company (NYSE:TAP,TSX:TPX) and HEXO (NYSE:HEXO,TSX:HEXO), released the details of its new lineup of infused beverages. Six new drinks will become available around the summer and are intended to pair with the season.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Partnerships with Minardi Law , Minorities for Medical Marijuana, CultivatED, and the Georgia Justice Project will include clinics and virtual events across Florida , Georgia , and Massachusetts
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today a series of expungment clinics located throughout south and central Florida as well as virtual events in Georgia and Massachusetts . The clinics are part of the Company’s celebration of the 50 th anniversary of 420.
During the month of April, Minardi Law has hosted expungment clinics and will be hosting two more as follows:
- Releaf Patient Appreciation Day, April 17 th ( Valrico )
- First Annual 4/20 Event ( St. Petersburg Beach )
At these clinics, an attorney will be present to review records and see if someone is eligible for a sealing or expungment of their records. As part of the events, Trulieve will be helping cover the costs for finger prints, legal fees, and court costs.
Trulieve is working with Minorities for Medical Marijuana (“M4MM”) to host a 4/20 Expungement Clinic, part of M4MM’s Project Clean Slate. This event will take place on Saturday, April 24, 2021 , from 9:30am – 4:30pm at Riviera Beach City Hall. Anyone seeking to take place in this event is required to register in advance at http://trulieve.cc/expungementpreregistration .
In addition, Trulieve is sponsoring the First Friday Series , a weekly virtual event from the Georgia Justice Project to help Georgia citizens with record restrictions, and is also sponsoring the Fellowship Presentation and Expungement Clinic being offered through CultivateEd and GBLS on Friday, April 23 from 3:00pm – 4:00pm . You can register for the Massachusetts expungement clinic in advance here: HTTPS://BIT.LY/2Q655KK
“Our mission as a company has always been to improve people’s lives,” said Trulieve CEO Kim Rivers . “We’ve always been dedicated to improving the communities we call home. Partnering with Minardi Law , Minorities for Medical Marijuana, Georgia Justice Project and CultivatED on these clinics was a simple decision for us; we encourage anyone seeking help with the expungement process to attend one of these clinics in your own state to start the process.”
For more information about Trulieve and the April expungment clinics, please visit www.Trulieve.com .
Trulieve is primarily a vertically integrated “seed-to-sale” company in the U.S. and is the first and largest fully licensed medical cannabis company in the State of Florida . Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the State of Florida , as well as directly to patients via home delivery. Trulieve also has operations in California , Massachusetts , Connecticut and Pennsylvania. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF.
To learn more about Trulieve, visit www.Trulieve.com .
SOURCE Trulieve Cannabis Corp.
News Provided by PR Newswire via QuoteMedia
Seth Rogen’s New Cannabis Brand are Now Available at Apothecarium Dispensaries in San Francisco , Berkeley and Capitola
The Apothecarium is offering cannabis from Houseplant, the cannabis lifestyle brand founded by Seth Rogen and Evan Goldberg at its five California dispensaries. The Apothecarium has three San Francisco locations (Castro, SOMA and Marina ) and one each in Berkeley and Capitola (outside of Santa Cruz ).
“With the vast number of dispensaries in California , we put a lot of effort into identifying the right ones that align with Houseplant’s values,” said Seth Rogen , Co-Founder of Houseplant. “The Apothecarium shares the same commitment to creating a strong consumer experience that we pride ourselves on and we are thrilled to bring our three initial strains to their stores in the Bay Area.”
Houseplant is launching with three flower strains, all of which will be available at The Apothecarium, including: Diablo Wind (sativa), Pancake Ice (sativa) and Pink Moon (indica). Like their founder’s groundbreaking film “Pineapple Express”, Houseplant strains are named after weather phenomena. Each strain will be sold in a custom tin.
“We are so proud to be one of the very first dispensaries in California to offer Houseplant to our customers,” said Ryan Hudson , CEO and co-founder of The Apothecarium. “Seth, Evan and everyone at Houseplant love and respect cannabis as much as we do. We simply cannot wait to share their beautiful and delicious flowers with our guests.”
“We’ve been working with the Houseplant team for more than a year and are grateful to have a partner that shares so many of our values, including an emphasis on cannabis education, quality, reform of cannabis laws and beautifully designed, recyclable packaging.”
“Seth has been hands-on during the process, spending time with our store managers to make sure they know the products and how much care has gone into vetting and selecting the best strains. We think our guests are going to love Houseplant.”
About The Apothecarium
The Apothecarium is recognized as one of the nation’s premier cannabis dispensaries, with an emphasis on education via in-depth one-on-one consultations from highly trained cannabis consultants. The company was founded by three first cousins and two family friends in 2011. Our dispensaries are known for providing educational events that are open to the public at no cost — and for welcoming seniors, first-time dispensary visitors, and people with serious medical conditions. The Apothecarium’s flagship San Francisco dispensary was named the best-designed dispensary in the country by Architectural Digest . Patients and customers may order at our dispensaries or online for pickup or delivery at apothecarium.com [apothecarium.com] .
The Apothecarium is committed to giving back to the communities we serve. We have donated more than $400,000 in cash to community groups and nonprofits — plus more than $300,000 worth of in-kind donations.
All Apothecarium dispensaries continue to implement safety measures to protect guests and team members. Protocols include strict social distancing inside and outside the dispensaries, a mask requirement for everyone inside the dispensaries, no contact check-in procedures and ongoing sanitizing throughout the day.
CA Licenses: C10-0000523-LIC; C10-0000522-LIC; C10-0000515-LIC, C10-0000738-LIC, C10-0000706-LIC
News Provided by Canada Newswire via QuoteMedia
MISSISSAUGA, Ontario TheNewswire – April 16, 2021 Sire Bioscience Inc. (CSE:SIRE) (OTC:BLLXF) (FSE:BR1B) (CNSX:SIRE.CN) (“SIRE” or the “Company”) announces that Brian Nugent has resigned as a member of the Company’s board of directors (the “ Board ”). It has been a pleasure and a blessing to have worked with Brian Nugent over the past few years, his business acumen and tremendous experience will certainly be missed, SIRE wishes him nothing but the best in all his future endeavors.
About Sire Bioscience
SIRE is headquartered in Mississauga, Ontario with its wholly owned subsidiary PLANTFUEL® based in Denver, Colorado. SIRE is managed by a group of successful entrepreneurs who have extensive experience in the areas of consumer-packaged goods, manufacturing, logistics, and distribution. SIRE is a CPG life science company focused on the plant-based foods and supplements industry.
For additional information contact:
Sire Bioscience Inc.
Copyright (c) 2021 TheNewswire – All rights reserved.
News Provided by TheNewsWire via QuoteMedia