Colorado is an OG cannabis state, having legalized in 2014. Colorado initially implemented no limits on the number of retail and cultivation licenses. Local operators enjoyed one significant advantage here until 2019 when the state decided to allow public companies and out-of-state operators to enter this previously protected market.
The state began issuing licenses in January 2020 for marijuana hospitality establishments, including tasting rooms, cannabis cafes, and designated consumption areas in hotels. The first recreational marijuana delivery license was awarded to social equity applicant Doobba LLC. Deliveries began August 2021 in partnership with Strawberry Fields dispensaries.
Denver recently approved the city's first social equity license for a marijuana consumption lounge, Tetra Lounge, located in the city's downtown area. Under Denver's regulations, only qualified social equity applicants are eligible to apply for hospitality establishment permits in for the first six years of the program. With two more applications underway, the state will soon see a significant economonic benefit from consumption lounges.
December 2021 | Schwazze completes acquisition of Smoking Gun for $4MM in cash and 100,000 shares of Schwazze stock
November 2021 | Schwazze signs definitive agreement to acquire MCG, LLC (Emerald Fields dispensaries) for $29MM
November 2021 | Columbia Care completes acquisition of Medicine Man for $42MM
October 2021 | PharmaCann announces merger with LivWell
October 2021 | Curaleaf completes acquisition of Los Suenos Farms for $67M
October 2021 | Canopy Growth agrees to buy Wana Brands for $298MM, pending federal cannabis legalization
August 2021 | CFN Enterprises acquires CNP Operating for $35MM
August 2021 | Village Farms International acquired Balanced Health Botanicals for $72MM
September 2020 | Columbia Care acquires The Green Solution
June 2020 | Schwazee acquires Starbuds for $120MM
The Centennial State is the second largest in the U.S., with $2.2B in total sales in 2021. MSOs and other consolidators continue to be on the prowl. The most efficient producers and brands with loyal followers are the most attractive targets. Local operators need to pursue economies of scale or find someone to partner with who can.
With brand recognition solidly on the horizon, don't be surprised to see local Colorado operators take their show on the road.
*There are multiple cultivation license tiers. Tier 1 allows up to 1,800 plants, Tier 2 allows up to 3,600 plants, Tier 3 allows up to 6K plants, Tier 4 allows up to 10,200 plants, and Tier 5 allows up to 13,800 plants.
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