KEY POINTS: While the nature, extent and timing of U.S. cannabis policy reform remains in limbo, a federal excise tax is inevitable and with that (if not before) the elimination of the 280E tax burden. The Democrats suggest a 25% excise tax (Cannabis Administration...

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...

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...

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...

  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...

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...

  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...

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...

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...