The GreenWave Buzz

Summary: The state of California is owed ~$732M in arrears for sales & use, excise and cultivation taxes including penalties and interest. The vast majority (72%) is due from establishments that are out of business. The California Department of Tax and Fee...

Key Points: Trulieve’s recent $113 million refund has prompted other operators to reevaluate their past and future strategies as the punitive 280E tax continues to wreak havoc on the Cannabis industry. We hosted a webinar discussion to help investors better understand...

Key Points The Department of Health and Human Services (HHS) released details of its recommendation to re-schedule cannabis from schedule I to III; Drug Enforcement Agency (DEA) approval is pending but opposition and court proceedings could still delay re-scheduling....

With the progression of individual state regulated markets, entrepreneurs, investors and other industry participants have remained intoxicated by the prospects for federal cannabis reform. These interests have been further inspired by the U.S. Federal Government’s...

Arguably, one of the greatest challenges confronting the U.S. cannabis industry is the continued pressure from a thriving illicit market. Consequently, same-store top line increases have generally been insignificant and near- term consensus revenue growth projections...

Cannabis stocks have advanced sharply since August 29th when the U.S. Department of Health and Human Services announced its recommendation to remove cannabis from a Schedule 1 narcotic to Schedule III. The precise timing of the Drug Enforcement Agency ruling...

Section 280E of the Internal Revenue Code disallows businesses from deducting otherwise ordinary business expenses from gross income associated with the “trafficking” of Schedule I or II substances, as defined by the Controlled Substances Act. Once moved to Schedule...

Herbl, one of California’s largest licensed cannabis distributors is in receivership. Last year it served ~1K retailers and accounted for ~18% (~$700M) of the state’s $3.8B retail sales amount. Other licensees could be at or near a similar breaking point. California...

The announcement last week by the department of Health and Human Services (HHS) that it is now recommending the rescheduling of cannabis from schedule I to III, marks a significant inflection point for federal cannabis reform. The timing of the Drug Enforcement Agency...

Beginning in Q1:23, California cannabis excise tax reporting shifted from distributor to retailer. With this change, the state provides an added layer of transparency in reporting cannabis sales.  Our analysis reveals that prior period revenues (2018-2022) are...

The long-term prospects for industry growth remain compelling as more states legalize cannabis. Near-term fundamentals are hampered by a thriving illicit market, lack of law enforcement, price compression and added costs associated with prohibition most notably, the...

TERRASCEND SETS IN MOTION UP-LISTING TO THE TORONTO STOCK EXCHANGE Last week, Terrascend announced that it filed an application to list its shares on the Toronto Stock Exchange (TSX).  The company indicates that in order to qualify for listing, it will need to...