Notable Players

A Deeper Look At This State

Regulatory Framework

Arizona is the 13th state to legalize adult-use cannabis. The adult-use license application process starts in January 2021 and is available only to vertically integrated medicinal operators. An additional 36 licenses will be available at a later not yet determined date.

95 licensed operators received approval for adult-use sales in January 2021.

Notable Market Activity

March 2021 | Verano announces acquisition of three retail and a cultivation and processing facility

November 2020 | Verano announces acquisition of Alt Med

November 2020 | AYR announces acquisition of Oasis for $81MM

March 2019 | Harvest acquires Arizona Natural Selections


What's the Play?

Arizona boasts a fairly large, established medicinal market that is transitioning to adult-use. Considering patient counts are between three to four percent of the population, opening access to the other 96% of residents and tourism will likely result in near-term supply shortages that will support high wholesale prices. Small players without owned cultivation risk supply shortages over the intermediate term until additional wholesale capacity comes online.

Vertically-integrated Arizona operators and cultivators will have a multi-year window to enjoy robust demand for their products. Operators are rightfully raising capital for expansion, which should be plentiful given these projects' high ROI nature.

Though Harvest has the early advantage in the state, every major MSO with capital is looking to enter this market. We anticipate a lot of transaction activity in the Grand Canyon State for the next 24 months. Small retail operators may want to consider selling to larger players before the impact of supply shortages outweights the perceived uplift from adult-use.

If 300 days of sunshine every year isn't compelling enough, investors and acquirers alike will find this market ripe for money-making opportunities.


Market Snapshot

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

58,380

This Data Point

594/273

By The Numbers

Population

~7.3MM

Medicinal Legalization

2010

Adult-Use Legalization

2021

MMJ Patients

~308K

Monthly Revenue

~$119MM

Cultivation Cap

No Limit

Cultivation Licenses

143/143 (Issued/Limit)

Retail Licenses

143/143 (Issued/Limit)

Retail License Cap per Operator

18

Vertical Integration

Required

Delivery

Allowed

MMJ Qualifications

Less Restrictive

State Population / # Retail Licenses

~56K

Annual Tourists

~
47
MM

Accepts Out of State MMJ

No

MMJ Patients / # Retail Licenses

Top Cultivators

Notable Market Activity

Quick sentance is needed or wanted

Quick sentance is needed or wanted

Quick sentance is needed or wanted

Proprietary Sharp Capital Advisors data - compiled using various sources including state and local government data
Shit We Don't Know

Have a tip about this state? Let us know!