Colorado

insights

February 22, 2021
Notable Players

A Deeper Look At This State

Regulatory Framework

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 major advantage here, until 2019, when the state decided to allow public company 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. Additionally, adult-use delivery permits are slated to begin in 2021.

Notable Market Activity

September 2020 | Columbia Care acquires The Green Solution

June 2020 | Schwazee announces acquisition of Starbuds for $120MM

What's the Play?

MSOs and other consolidators continue to be on the prowl. This mature market seems to be finding demand/supply equilibrium with whole-sale flower prices up more than 30% since October 2020. 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 importance on the horizon, don't be surprised to see local Colorado operators take their show on the road.

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

~5.8MM

Medicinal Legalization

2000

Adult-Use Legalization

2014

MMJ Patients

~87K

Monthly Revenue

$200MM

Cultivation Cap

13,800 Plants*

Cultivation Licenses

711/No Limit (Issued/Limit)

Retail Licenses

605/No Limit (Issued/Limit)

Retail License Cap per Operator

No Limit

Vertical Integration

Allowed

Delivery

Allowed

MMJ Qualifications

Less Restrictive

State Population / # Retail Licenses

~10K

MMJ Patients / # Retail Licenses

*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.

Top Cultivators

Notable Market Activity

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

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