The state of Colorado released its marijuana tax revenues for August which implies total monthly sales of $228.9 (+11% MoM; 33% YoY) with medical marijuana revenues at $43.6M (+3% MoM; 41% YoY) and recreational use ~$185.3M (+13%MoM; 31%YoY). We estimate that the average cardholder spend in the month ticked up to ~$520 from ~$510 in July ($355 Aug’19). The …

• GreenWave Buzz
• September 13, 2020

August 5, 2020 This week, the State of Colorado released its medical marijuana cardholder statistics for May and June. The average number of cardholders declined from ~86K in H1:19 to ~82K in H1:20 while the average patient $ spend/month increased to $400 from $313 with a notable uptick in April just as the COVID-19 pandemic began its assault on the …

• GreenWave Buzz
• August 5, 2020

The complexities of the U.S. cannabis industry have been exacerbated by the consequences of states operating within the confines of closed economies defined by their own interpretations of legitimacy under the shadow of existing federal laws. These variations of standards from one state to another carry inherent uncertainties for businesses and investors with respect to how the industry will operate …

• GreenWave Buzz
• July 29, 2020

Many cannabis businesses are struggling, though not all the blame resides in faulty management decisions. In this edition of “The GreenWave Buzz,” we highlight the added costs of federal prohibition and discuss other risk factors that may cause near term volatility for both public and private valuations, giving particular attention to the tax burden associated with Section 280E of the IRS code.

• GreenWave Buzz
• January 27, 2020

The continuing trend of individual state approvals of cannabis use along with the recent end of prohibition in Canada have sparked a heightened level of interest in the U.S. Cannabis industry among a larger and more sophisticated pool of investors. This interest has been further inspired by the U.S. Federal Government’s continued reluctance to aggressively interfere with individual state permissions despite early on threats by the Trump Administration’s Department of Justice led by the recently dismissed Attorney General Jeff Sessions. We continue to believe that the rescission of federal cannabis prohibitions is inevitable, the question is when. Given the confluence of reform measures at both the state and federal levels we are optimistic that a first step for meaningful change to federal policy could come as early as next year with the passage of The STATES Act (a bipartisan bill providing state protections under the Tenth Amendment).

• GreenWave Buzz
• November 1, 2018