The GreenWave Buzz
our proprietary analysis and commentary on what’s relevant in the cannabis space
CASH IS KING – WHICH MSOs ARE MOST EFFICIENT?
KEY POINTS: With 3 years of public disclosures, we are better able to analyze and assess the financial and operational performance of the U.S. Multistate Operators (MSOs). The added costs of prohibition (most notably 280E tax, which, in some cases can trigger...
“MORE” IS LESS BUT BEWARE OF THE SNAKE IN THE “GRASS”
KEY POINTS: The eventual passage of the MORE Act mitigates several operational risks for cannabis businesses that touch the plant. The uncertainty around the timing of federal reform measures keeps valuations vulnerable to the impact of 280E. Most of the Multi-State...
Q ”4:20” and YE 2020 REVIEW
KEY POINTS Now on the cusp of federal reform (timing of which is unknown), the cannabis industry appears at an inflection point with the growth prospects and legitimacy we outlined in 2014 beginning to materialize. Our review of a grouping of publicly traded MSOs for...
”MORE” TAX REQUIRED TO RID THE (IRS) SNAKE IN THE “GRASS”
KEY POINTS: With two full years of public company disclosures, we provide a detail analysis that suggests a minimum federal excise tax of 10% upon the end of federal prohibition. The MORE Act currently includes a 5% excise tax (with a gradual increase to 8% over three...
Regardless of a Blue Wave, Here Comes the Green Wave!
Our inaugural “GeenWave Report” (2014) indicates, “The overall growth in the U.S. legal marijuana industry is substantial and will be fueled by the implementation of additional legalized markets across the country as momentum continues in favor of changes to...
Colorado Cannabis Sales Remain Resilient in September as the Shift from “Consumer” to “Patient “Continues
The state of Colorado’s marijuana tax revenues for September implies total monthly sales of $223.9M (+2% MoM; 44% YoY) with medical marijuana revenues at $46.2M (+10% MoM; 58% YoY) and recreational use ~$177.2M (+1%MoM; 47%YoY). We estimate that the average cardholder...
Buying Low and Selling High in Colorado: August Cannabis Purchasing Trends Continue to Suggest Shift from “Consumer” to “Patient”
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 STATE OF COLORADO: CANNABIS PURCHASING TRENDS SUGGEST A SWITCH FROM “CONSUMER” TO “PATIENT” AS DISPOSABLE INCOME LEVELS LESSEN DURING COVID-19 PANDEMIC
The state of Colorado released its marijuana tax revenues for July which implies total monthly sales of $206.7M (+ 7% MoM; 20% YoY) with medical marijuana revenues at $42.4M (+4% MoM; 42% YoY) and recreational use ~$164.2M (+8% MoM; 16%YoY). We estimate that the...
The State of Colorado: Medical Marijuana Cardholders Spend More Per Month During COVID-19 Pandemic
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...
Clearing the Smoke: Is it Practical For a New State to Legalize Cannabis?
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...
PROHIBITION IS EXPENSIVE: SIT OR GET OFF THE “POT”
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.
A Little More Country, But Getting Ready to Rock and Roll
Welcome to “The GreenWave Buzz”, a periodic briefing intended to provide insights and analysis of various subject matters and business trends effecting the emerging cannabis industry. In this issue, we revisit our initial industry thesis and expectations from 2014,...