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CHICAGO--(BUSINESS WIRE)--PRESS RELEASE--Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ), a vertically integrated, multi-state operator and the number one U.S. wholesaler of branded cannabis products, today released its financial results for the three months ended March 31, 2022. All financial information presented in this release is reported in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) and in U.S. dollars.
First Quarter 2022 Financial Highlights
First quarter revenue of $214 million, up 20% year-over-yearGross profit excluding fair value mark-up for acquired inventory of $113 million, or 53% of revenue, an increase of 29% year-over-yearFirst quarter adjusted EBITDA of $51 million, or 24% of revenue, an increase of 45% year-over-yearWholesale revenue of $95 million, maintained position as #1 seller of branded cannabis products in U.S. with leading share in the flower, concentrates, and vape categoriesRetail revenue increased 44% year-over-year, to $119 million, or $2.5 million per average store open in the quarter and same-store-sales increased 9% year-over-yearEnded the quarter with $179 million of cash on handOpened four new retail stores, three in Florida and one in Pennsylvania, bringing the company’s total retail footprint to 50Launched branded product portfolio in Florida, including High Supply, Good News® Remedi and Sunnyside* ChewsManagement Commentary
"Q1 was a solid quarter for the Cresco Labs team in a challenging environment for all consumer product categories. While our 10-state footprint saw a cumulative sequential contraction of 4.5%, we held or took market share in most of our states and outperformed the markets with our 2% decline. We understand that an emerging industry’s growth trajectory is rarely linear, especially a highly regulated industry with a fragmented state-by-state structure, conflicting federal and state laws, and the addition of general macro pressures. Notwithstanding, we continue to execute with a clear and focused strategy to obtain market leadership with a portfolio of cannabis brands consumers love and a plan to get them on as many shelves as possible. The strategy remains constant, and the Columbia Care acquisition announced in the quarter simply fits these stated priorities hand-in-glove. We are pairing the best consumer brands with a broad, deep and strategic footprint,” said Charles Bachtell, co-founder and CEO of Cresco Labs.
“The first quarter showed the resilience and strength of the business we have built over the past few years. We remain focused on playing the long game and building a business that will be a lasting leader in the cannabis industry under any regulatory outcome. The compliance-focused foundation of both Cresco Labs and Columbia Care is helping ensure a smooth progression towards deal approval through a reasonable and manageable regulatory process. We recently crossed our first milestone by passing the federal HSR review process on May 16 and we do not expect state regulatory approvals to be an issue for our closing timeline,” Bachtell concluded.
This proliferation of CBD consumers, and of increasing CBD use among existing consumers, is in part driven by the growing availability of CBD products. Most consumers have encountered hemp and CBD products at pharmacies, grocery stores, specialty stores and even gas stations. But which channels are consumers turning to most often?
Brightfield Group anticipates consumers will purchase nearly $2.24 billion of CBD products through online channels in this calendar year. That is expected to more than double by 2026 to $4.8 billion.Knowing where consumers purchase CBD products can inform hemp growers on which distribution partner to work with to maximize the odds of selling through their year’s supply. For example, if you mainly manufacture CBD for vape cartridges, it would not be ideal to partner with an online-only distribution business.
Let’s dive into Brightfield Group’s U.S. CBD distribution channel data to learn about the American CBD consumer.
Online Dominates, But Not Everywhere
Even before the COVID-19 pandemic saw us hermit ourselves away from one another, the ease of online delivery was already overtaking our lives. The same holds true for CBD products, with online channels such as CBD marketplaces and brand websites making up the plurality of total projected CBD sales for 2022. Brightfield Group anticipates consumers will purchase nearly $2.24 billion of CBD products through online channels this calendar year. That is expected to more than double by 2026 to $4.8 billion.
But not all product types are bringing in the most revenue from online sales. While Americans are fine with consuming CBD purchased through e-commerce channels, they prefer to obtain pet CBD products from pet stores—$261.6 million of pet CBD products are projected to be sold through pet stores in 2022, compared to $95.6 million purchased online. This trend is expected to maintain through Brightfield’s forecast period, with pet stores accounting for $394 million of pet CBD sales in 2026, compared to $166 million through online sellers.
BERKELEY, Calif., May 18, 2022 /PRNewswire/ -- PRESS RELEASE -- Steep Hill has announced that the company's licensee partner, Steep Hill Michigan, a Cannabis Regulatory Agency (CRA) licensed medical and adult-use/recreational cannabis safety compliance testing facility, has earned ISO/IEC 17025:2017 accreditation, an International Standard recognized by governments and industry participants as the standard of excellence for the technical requirements and operational competence of a quality laboratory management system. The accreditation was validated by Perry Johnson Laboratory Accreditation (PJLA), a Michigan-based ISO assessment and validation.
Steep Hill Michigan CEO, Dr. Jeffrey Kittendorf, said in making the announcement, "Achieving ISO 17025 accreditation is a critical milestone for our operation in Michigan. This accreditation underscores our team's commitment to quality management and continual improvement. It assures our customers that testing performed by Steep Hill Michigan is rigorous and accurate, thereby instilling consumer confidence that products tested by Steep Hill Michigan fully meet all safety requirements."
Testing cannabis is a state requirement and verifies that medicinal and adult-use products are safe for consumption and free from harmful levels of contaminants. Steep Hill Michigan, located on the west side of Ann Arbor provides full-service compliance and research and development testing for Michigan caregivers, cultivators and processors. Its team is committed to providing excellent customer service, quick turnaround times and reliable results. First-time customers can receive up to $100 discount on their first full compliance test until Dec. 31, 2022.
NORWOOD, Mass., May 18, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- MariMed Inc., a multi-state cannabis operator focused on improving lives every day, announced today it had been awarded a provisional dispensary license (PDL) by the Ohio Board of Pharmacy.
MariMed won this license in the Ohio lottery process. The license allows the company to develop a medical dispensary in Tiffin, Ohio, located south of Toledo and home to the University of Bucharest and Tiffin University. Under the Ohio regulations, MariMed must complete the buildout and pass final inspection by February of 2023.
“We are delighted to enter the medical cannabis program in Ohio,” said Bob Fireman, Chief Executive Officer of MariMed. “We intend to seek additional opportunities to expand our cannabis operations in Ohio including the distribution of our award-winning branded products.”
Ohio cannabis regulations allow for a single company to own cultivation, production and up to five retail dispensaries. In keeping with its strategic growth plan, MariMed will over time pursue other cannabis licenses to increase its operational footprint to the maximum allowable by Ohio regulations.
According to the Ohio Department of Commerce, 2021 medical cannabis sales were just over $350 million with 58 dispensaries in a state with a population of nearly 12 million. Ohio’s legal medical cannabis program currently has more than 260,000 registered patients. With robust adult use cannabis programs in neighboring Midwest states of Michigan and Illinois, discussions for an adult use program continue in the Ohio legislature.
WAREHAM, Mass., May 17, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Nature's Medicines announces the opening of a new dispensary in Wareham, Mass., just outside of Cape Cod. The new dispensary, located at 3119 Cranberry Hwy, East Wareham, MA, officially opened to the public on Wednesday, April 6.
The approximately 4,326-square-foot Wareham dispensary offers a large floor plan with open conference spaces to promote an educational experience for new patients to explore all of the options available to them. Also new to the Wareham location is a curated and customer-first shopping experience that eliminates the need to wait in line. Customers can walk the store and examine all of the products displayed in the dispensary. Store leaders will be available to them at any time as well for a one-on-one product explanation before the customer meets with their budtender.
Nature's Medicines is pleased to extend their welcoming hospitality, educational experiences and low prices to the Wareham and Cape Cod area. Of the opening of the Wareham location, Dispensary Manager Jacqueline Robillard said, "We try to create a mature shopping experience where customers can talk with employees at our education hub about different products and their effects. Our menu is quite extensive. We're really happy to be here and we're here to help."
The Wareham location is Nature's Medicines' third recreational dispensary to open in Massachusetts, with two already in business in Uxbridge and Fall River.
After missing a May 1 deadline to begin issuing licenses to entrepreneurs hoping to participate in Vermont’s forthcoming adult-use cannabis market, the state’s Cannabis Control Board awarded its first cultivation license May 16.
Regulators issued the license to an indoor grower in Rutland County, according to a local WCAX report, and Cannabis Control Board Chair James Pepper told the news outlet that dozens more applications are nearing approval.
“We expect to license another handful of people next week,” he said. “You know we can’t issue licenses until we have the staff in place to ensure that we are giving licenses to the right people and have the team in place that can ensure compliance with our regulations.”
Adult-use sales in Vermont are expected to launch Oct. 1.
As 2022 legislative sessions have ended for roughly half of state legislatures in the U.S., adult-use cannabis legalization proposals have remained unfinished business.
Rhode Island is on course to change that.
House and Senate lawmakers sponsoring companion legislation—Senate Bill 2430 and House Bill 7593—that aims to legalized the sale and possession of up to 1 ounces of cannabis for those 21 and older, unveiled a key amendment May 17 that they say will move their efforts forward with committee votes this week and full-chamber votes next week.
While Sen. Joshua Miller and Rep. Scott A. Slater—both Democrats—introduced their legislation March 1, the latest version announced Tuesday includes a provision to provide automatic expungement for previous cannabis convictions. Specifically, those with any prior civil violation, misdemeanor or felony conviction for possession of cannabis that would be decriminalized by the bill would receive expungement free of charge and without a hearing.
In addition, their amendment would push back the launch date for commercial adult-use sales to Dec. 1—two months after originally proposed. Also, their latest proposal would eliminate the current registration fees charged to patients and caregivers in Rhode Island’s medical cannabis program.
Based on committee testimonies and debate since their March 1 introduction, Miller and Slater said they anticipate their underlying legislation and proposed amendment to gain approval in the House Finance and Senate Judiciary committees May 18, before full-floor considerations in each chamber ensue on May 24.
Nebraskans for Medical Marijuana, which is moving forward with a grassroots effort to get two medical cannabis legalization initiatives on the state’s November ballot after losing two of its major donors, has now sued the state to ease its ballot requirements.
The group filed a lawsuit May 16 that seeks to overturn a rule that requires petitioners to gather signatures from a large number of rural counties in the state, according to the Associated Press.
Nebraskans for Medical Marijuana collected the required number of valid signatures to get its medical cannabis legalization measure before voters in the 2020 election, but the Nebraska Supreme Court ultimately ruled that the ballot initiative violated the single-subject rule outlined in the state constitution.
Now, after filing two new medical cannabis initiatives with the Nebraska Secretary of State to get the issue before voters this November, the group must collect roughly 87,000 signatures by July 7.
The Nebraska Constitution requires the signatures to come from at least 5% of registered voters in 38 of the state’s 93 counties, AP reported, which is meant to prevent groups from collecting signatures only in larger cities.
Oklahoma Gov. Kevin Stitt has signed legislation to increase funding for medical cannabis enforcement and crack down on illegal sales in the state.
One of the bills recently signed into law will provide grant funding for county sheriffs to dedicate a full-time deputy to assist with the Oklahoma Medical Marijuana Authority’s (OMMA) compliance visits to medical cannabis operations, according to The Oklahoman.
RELATED: Oklahoma Bill Would Give Cannabis Taxes to Law Enforcement for Inspection Oversight
That legislation’s sponsors said the bill was meant to allow law enforcement officers to help OMMA officials in instances where licensed medical cannabis businesses are unwilling to allow inspectors on their property, which the sponsors said has happened 181 times between April 2021 and February 2022, The Oklahoman reported.
The bill creates a revolving fund that earmarks $5 million annually for county sheriffs to dedicate an officer to the OMMA for one year, according to the news outlet.
FORT LAUDERDALE, Fla., and TORONTO, May 16, 2022 – PRESS RELEASE – Flora Growth Corp., a leading all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, announced the appointment of regulatory veteran Holly Bell as Vice President of Regulatory Affairs. Bell will play a critical role in Flora’s domestic and global expansion strategy and lead government relations in key international markets.
Most recently, Bell was the Florida Department of Agriculture and Consumer Services’ first Director of Cannabis. This agency allowed for the creation of manufacturing, cultivation and sales programs in the state. As the Director of Cannabis, Bell worked with leading regulators throughout the state to create the first commercial hemp program in Florida and develop an extensive educational series on the program. She also advised leading financial institutions on compliance to help them offer banking services to cannabis businesses.
At Flora, Bell will oversee the regulatory strategy supporting the advancement of Flora’s cultivation, distribution and pharmaceutical programs including the company’s regulatory submissions and interactions with government authorities worldwide. Bell will also work to develop and expand curriculum produced in partnership with EdEx that educates university students, companies and governments about the business of cannabis.
“I am excited to be working with Flora, supporting our work on the global stage, by advancing how the world views cannabis as a product and as a medicine,” Bell said. “I’m looking forward to leveraging my experience launching Florida’s hemp program to help Flora improve access to some of the best wellness brands in the world. From our leadership and brand teams to our valued scientists and cultivators, every part of the Flora organization is dedicated to providing safe, legal and accessible cannabis products to consumers globally.”
“Holly’s unique knowledge and understanding of the United States’ regulatory framework will position us to make thoughtful, educated and bold decisions regarding strategic distribution, cultivation and sales plans,” said Luis Merchan, president and CEO of Flora Growth. “We look forward to bringing Holly’s expertise to our growing roster of industry standouts and working closely with governments worldwide to break down the barriers to the cannabis trade.”
Before joining the Flora team, Bell worked as a cannabis consultant across the U.S., helping build the infrastructure for industrial hemp programs. Bell holds a bachelor’s degree in Agricultural Economics from Purdue University and is a tenured consultant with experience working in the entertainment, cannabis and banking spaces.]]>Ohio officials have followed through on plans to more than double the state’s current number of medical cannabis dispensaries, announcing this week that they have approved 70 new retail licenses that were issued through a lottery.
The Ohio Board of Pharmacy, which regulates the state’s medical cannabis dispensaries, announced the license recipients May 16, according to The Cincinnati Enquirer.
The board conducted the lottery earlier this year, the news outlet reported, and then reviewed the applications drawn to ensure they met the business, security and patient care requirements for a license.
A certain number of the new cannabis retail licenses were allocated for each dispensary district, which contain a county or a group of counties, according to the Enquirer.
The full list of provisional license recipients can be viewed on the program’s website.
After a life-changing tragedy struck his family, Narith Panh, chief operating officer (COO) of Utah-based, vertically integrated medical cannabis company Dragonfly Wellness, entered the cannabis industry on a mission to help families find relief through this alternative form of medicine.
Now, more than two years into this journey, Panh shares with Cannabis Business Times what drew him to the industry, lessons learned and some of the company’s biggest accomplishments in celebration of Asian American and Pacific Islander (AAPI) Heritage Month.
Melissa Schiller: How did you get your start in the cannabis industry, and how did it lead to your current role with Dragonfly Wellness?
Narith Panh: I joined Dragonfly about two and a half years ago. What got me into it was an unfortunate accident with my brother. My brother was involved in an auto-pedestrian hit-and-run accident. He was hit by a drunk driver as he was crossing the street at about 40 mph. That has a 90% mortality rate, so we’re really lucky that he survived the accident. Not only did he survive, but he really thrived through it. A big reason that he was able to thrive was that through his entire nine-month recovery, we medicated him on edible cannabis only—not a single pain pill. We still have the original prescriptions in the bottle that they originally gave him.
I was born and raised here in Salt Lake City, so the opioid epidemic is no stranger to me. I’ve lost friends and family to that. I didn’t want my brother to be the next statistic. It’s a very common story: A guy gets into an accident and all of a sudden, he becomes a heroin addict on the street. That’s really crazy to get to that point, but it’s a very common story that many families have to deal with.
One of [my brother’s] friends opened up a GoFundMe account and raised $60,000 from friends, family, complete strangers [and] people in the community. He got featured on the news somehow, and it was just overwhelming. We were fortunate that we had insurance, that the person who hit him had insurance [and that] they found the person. We had most of our medical expenses covered. We had $60,000 and we were like, “We don’t need this money. What do we do with it?” We were looking for somewhere to invest, somewhere to donate, and that’s where Dragonfly came up.
Delaware Democratic Gov. John Carney reaffirmed his opposition to adult-use cannabis legalization but expressed receptiveness for decriminalization on May 16.
His comments came after the Democratic-controlled Delaware General Assembly sent a decriminalization bill to his desk last week with both chambers approving the legislation with three-fifths majorities.
RELATED: Delaware General Assembly Passes Adult-Use Possession Bill
The legislation, House Bill 371, intends to legalize the possession of up to 1 ounce of cannabis for adults 21 and older.
While Carney’s communications director, Emily David Hershman, said last week the governor’s position on cannabis had not changed following that bill’s passage, Carney told ABC-affiliate WMDT on Monday that he agrees with decriminalizing the plant.
“I don’t think it should be a criminal offense but this bill that passed just decriminalizes it. It doesn’t have a regulatory piece that goes with it,” Carney said. “So, we’re looking at the same concerns that I’ve been articulating for some time with respect to public safety and its effect on our young people, and we’ll continue to keep those in mind.”
At the May 14 Emerald Cup, Fig Farms received an award for 1st Place Indoor Flower and won the Indoor Flower Breeder’s Cup, according to a press release.
The California cultivator was founded in 2016 by legacy farmers and breeders Keith and Chloe Healy, per the release.
Animal Face, the Emerald Cup 1st Place Indoor Flower Winner
Animal Face by Fig Farms was named as this year’s 1st place indoor flower at the Emerald Cup.
The 1st place winning Animal Face was hunted from seed, further solidifying the ability Fig Farms has in selecting winning phenotypes. Animal Face’s terpene profile was categorized by the Emerald Cup as “OG & Gas” with tasting notes of gas, kiwi and paint thinner.
Holy Moly!, the Emerald Cup Indoor Flower Breeder’s Cup Winner
Santa Rosa, CA – May 16, 2022 – CannaCraft, a large-scale cannabis manufacturer based in Northern California, is honored to announce their multiple first place award wins in the 18th annual Emerald Cup.
Dubbed as the “Academy Awards of Cannabis,” the prestigious competition of over 50 unique categories took place on Saturday, May 14th, 2022 at The Montalbán Theatre in Hollywood and was broadcast live worldwide on ALTRD.tv.
Farmer and The Felon brand’s “Lemon Sponge Cake” took home the highest honors of the evening, winning not only 1st place in the Sungrown Flower category, but also earning the coveted “Best In Show” distinction.
Sungrown flower is, by the competition’s definition, the “full sun, full term outdoor cultivation of mature cannabis without the use of artificial lighting in the canopy area at any point in time and without the use of a protective structure,” and to grow the superior quality that Farmer and the Felon is known for is extremely challenging, given the myriad of determination factors. The sun, soil, microclimates, and terroir all contribute to bringing about a unique and full expression of the flower along with its entourage effect.
The brand’s “Georgia Pie,” “Double OG Chem,” “92 OG” and “Sticky Buns” strains also finaled in the category, with 3rd, 4th, 8th and 11th place wins, respectively.
CannaCraft’s Care By Design brand was awarded two 1st place wins for its “1:1 Joint and Muscle Cream” in the Topicals – Therapeutic category, and its “1:1 Max” drops in the Tinctures category. The 1:1 Max is currently the most potent CBD product in the California market.
Another spring planting season for California’s legal cannabis growers is a time for optimism, an outlook curbed by a bevy of issues holding back the industry from its full potential.
Operators interviewed by Cannabis Business Times pointed to an ongoing supply glut, ever-changing state regulations and the still-thriving illegal market as obstacles negatively impacting their work this year. Yet, cannabis entrepreneurs continue to stay nimble in their daily functions as they wait for the pendulum to swing the other way.
Full Moon Farms, a small-scale business with three separate properties in Humboldt County, has 2.6 acres of sun- and greenhouse-grown cannabis canopy. Owner Nik Erickson works from a trio of disparate microclimates in growing strains such as Ice Cream Cake and Northern Berry.
Erickson enjoyed a hot sales year in 2020 before backsliding somewhat in 2021 with a declining market share for flower that remains a thorn in the side of California’s licensed cultivators. According to the California Cannabis Industry Association (CCIA), flower sales in March 2021 totaled $207 million, or just above 43% of total sales. In 2022, flower sales totaled about $150 million, or 37% of total sales.
“Farms got stuck sitting on product, which hit the bottom line for smaller operators that don’t have the wiggle room of the bigger, well-financed farms,” says Erickson.
Gaithersburg, Maryland - May 16, 2022 - PRESS RELEASE: JumpLights, Inc., a Maryland-based provider of horticultural lighting solutions, has unveiled the Catalyst Under Canopy Light, an LED lighting system that targets premium flower growth below the canopy. This patent-pending solution increases flower weight by more than 20% and improves the plants’ composition, quality and yield.
The Catalyst Under Canopy Light is designed to improve plant growth where traditional overhead canopy lights cannot – from the bottom up. The innovative design is easy to install, energy-efficient, and compatible with most standard grow racks. It features a highly-transparent lens designed to stay clean, which keeps the light source reliable and consistent.
The Catalyst is available in full-spectrum 260- and 340-watt light versions for 260 or 340 watts per 4x4 area for a recommended 2-bar configuration. The waterproof design features an advanced thermal system to decrease heat in grow rooms and extend the life of the lights.
JumpLights Chief Technical Officer Matteo Del Ninno explains, "The Catalyst under canopy light exemplifies our design ethos – prioritizing performance along with ease of use – to make growing more profitable and enjoyable."
After months of pre-launch testing and research, growers who used the Catalyst saw a vast improvement in crop yield and quality. The results prove that this under-canopy lighting solution is poised to be a leader in the industry.
Leaders in California’s Santa Barbara County are considering a new ordinance that would require a higher level of permit for those looking to grow cannabis in all unincorporated inland areas, according to the Santa Maria Times.
The Planning Commission voted 5-0 on May 11 to recommend that the Board of Supervisors adopt an ordinance amendment proposed by the Planning and Development Department that would require a conditional use permit for all cannabis cultivation applications submitted in Agriculture 2 and Manufacturing zones, the news outlet reported.
Currently, a land use permit is required for most cultivation operations, according to the Santa Maria Times.
RELATED: Civil Grand Jury Recommends Tweaks to Humboldt County’s Cannabis Licensing Process
The amendment would automatically shift applications for land use permits that have not received final approval to applications for conditional use permits, the news outlet reported.
New York’s cannabis regulators plan to host educational workshops this week to provide support for entrepreneurs seeking licenses in the adult-use market.
The Office of Cannabis Management (OCM) will hold two virtual sessions on May 17 and 18 to offer information for those applying for the first round of Conditional Adult-Use Retail Dispensary (CAURD) licenses, according to a Syracuse.com report.
The “Get Ready, Get Set" workshops will focus on the eligibility criteria for applicants who have been negatively impacted by cannabis prohibition and how the organizations that work with those applicants can support them, the news outlet reported.
At 4 p.m. on Tuesday, May 17, the OCM will host a workshop titled “Am I Eligible for a CAURD License? How do I Apply for a Conditional License?” That workshop will be followed by one called “How to Support Individuals with a Cannabis Conviction in Applying for License,” which will be held at 4 p.m. on Wednesday, May 18.
The OCM then plans to hold two “listening series” workshops next week to focus on how to support cannabis cultivation and ensure equity in New York’s adult-use cannabis industry, Syracuse.com reported.
U.S. Sen. Jacky Rosen, D-NV, announced last week that she led a bipartisan group of more than 20 of her colleagues to urge congressional leadership to act on banking reform for the cannabis industry.
A group of 24 senators wrote a letter to Senate and House leaders May 12, encouraging them to include the Secure and Fair Enforcement (SAFE) Banking Act in the final version of the America COMPETES Act.
Federal law currently prohibits financial institutions from providing services to state-legal cannabis businesses, as well as ancillary businesses that serve the industry, forcing these operations to conduct cash-only transactions.
“Because of this federally-imposed barrier, cannabis small businesses are repeatedly targeted by criminal actors and fall victim to cash-related safety risks, including growing incidents of theft, robbery, and violence,” according to the announcement from Rosen’s office. “The SAFE Banking Act would finally allow licensed cannabis businesses operating in states like Nevada to have equal access to banking services.”
The SAFE Banking Act has passed the House six times, most recently in February as a bipartisan amendment to the America COMPETES Act.
