December 20, 2022
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 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.

Notable Market Activity

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

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What's the Play?

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.

Market Snapshot

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By The Numbers



21+ Population


Annual Tourists


Medicinal Legalization


Adult-Use Legalization


First Adult-Use Sales


MMJ Patients


Monthly Revenue


Cultivation Cap

13,800 Plants*

Cultivation Licenses

1,059/No Limit (Operational/Limit)

Retail Licenses

917/No Limit (Operational/Limit)

Retail License Cap per Operator

No Limit

Vertical Integration




MMJ Qualifications

Less Restrictive

Adult Population/ # Retail Licenses


Accepts Out of State MMJ


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

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Los Angeles
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