Connecticut

insights

August 18, 2022
Notable Players

A Deeper Look At This State

Regulatory Framework

Governor Ned Lamont signed SB 1201 on June 22, 2021, officially legalizing recreational marijuana. A compromise agreement gives social equity applicants priority status in obtaining cultivation and retail licenses.

Recreational adult-use retail is not expected to open till late 2022. Moreover, a prospective adult-use cannabis operator must make a "good-faith effort" to enter into a labor peace agreement with a union before receiving its final license.

Under the agreement, local jurisdictions could prohibit retail sales through zoning ordinances, but residents could petition for a local referendum on the issue.

Notable Market Activity

November 2021 | Verano completed the acquisition of Willow Brook Wellness, LLC as well as entered into definitive agreements to acquire Caring Nature, LLC and Connecticut Pharmaceutical Solutions, Inc.

July 2020 | Curaleaf acquires Arrow Alternative Care Dispensaries

January 2019 | GTI acquires Advanced Grow Labs

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What's the Play?

With adult-use sales on the horizon, this market could quickly generate $250MM in sales in the first full year and $725MM in the fourth year.

Major MSOs have already entered this state through acquisitions and will benefit from first-mover-advantage. The Constitution State enjoys an attractive population density with a limited license regulatory framework. Look for the regulatory framework to expand, allowing for more patients and revenue while the northeast continues its march towards full legalization thanks to pressure from adult-use neighbors Massachusetts and New Jersey.

Once the state goes through the lottery process and issues those new adult-use licenses, there will be a demand of capital needed to build out the market. The capitalized and experienced operators should look to team up with license winners to get a foothold in the state.

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

~3.6MM

21+ Population

~2.44MM

Annual Tourists

~
7
MM

Medicinal Legalization

2012

Adult-Use Legalization

2021

First Adult-Use Sales

Pending

MMJ Patients

~60K

Monthly Revenue

~$15MM

Cultivation Cap

No Limit

Cultivation Licenses

4/21 (Operational/Limit)

Retail Licenses

18/18 (Operational/Limit)

Retail License Cap per Operator

No Limit

Vertical Integration

Allowed

Delivery

Not Allowed

MMJ Qualifications

Less Restrictive

Adult Population/ # Retail Licenses

Accepts Out of State MMJ

No

MMJ Patients / # Retail Licenses

~3.5K

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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Shit We Don't Know

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