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.
In March 2022, Denver 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.
May 2023 | Schwazze acquired dispensaries from Smokeys in a $8MM cash and stock deal
March 2023 | JARS Cannabis completed its acquisition of Euflora
October 2022 | Bloomios acquired Infusionz for a purchase price of $24MM in cash
September 2022 | Curaleaf completed its acquisition of Pueblo West Organics for $6MM
November 2021 | Schwazze signed a definitive agreement to acquire MCG, LLC (Emerald Fields dispensaries) for $29MM
November 2021 | High Tide acquired 80% of NuLeaf Naturals for $31M
November 2021 | Columbia Care completed its acquisition of Medicine Man for $42MM
October 2021 | Curaleaf completed its acquisition of Los Suenos Farms for $67M
October 2021 | Canopy Growth agreed to buy Wana Brands for $298MM, pending federal cannabis legalization
August 2021 | CFN Enterprises acquired CNP Operating for $35MM
August 2021 | Village Farms International acquired Balanced Health Botanicals for $72MM
The Centennial State struggled in 2022, with $1.8B in total sales. This compares with $2.2B 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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