Notable Players

A Deeper Look At This State

Regulatory Framework

Adult-use marijuana legislation failed to pass in Maryland in 2021. However, Maryland voters will likely get a chance to pass cannabis legislation via a voter referendum in 2022, according to House Speaker Adrienne A. Jones (D).

Although licensing fees are among the highest in the nation, the opportunity is well worth the price tag. Maryland has been slowly rolling out more retail licenses as operators must go through a rigid process wherein the regulatory body governs all supply chain aspects.

Each operator is limited to one retail license; MSOs have evaded the limit by utilizing management agreements wherein MSOs pay annual fees to state-licensed dispensary owners in return for their operations and P&Ls. Consequently, additional rules were adopted in 2019 to limit management service agreements or common ownership to four licenses in total. In 2021, regulators announced medical cannabis licenses and registrations would be handled through the state's general licensing portal, potentially moving things along faster.

Notable Market Activity

August 2021 | Cresco acquires dispensary Blair Wellness Center

November 2020 | TerrAscend acquires HMS Health from Curaleaf

September 2020 | 4Front sells three dispensaries to Ethos

July 2019 | Curaleaf acquires Grass Roots which includes Maryland footprint

What's the Play?

Maryland enjoys a robust medical market with substantial revenues and limited licenses. Patient counts have proliferated, resulting in annualized retail sales over $500MM in the medical market.  

MSOs will continue to invest in this market, as license limits allow for handsome profits. Financial investors should be comfortable deploying capital behind solid operators in the state.

New Jersey's adult-use legislation will be a catalyst for many states in New England. As a result, expect Maryland to accelerate the process to expand its medical program and work towards adult-use once COVID is contained.

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

~6.1MM

Annual Tourists

~
41
MM

Medicinal Legalization

2014

Adult-Use Legalization

N/A

First Adult-Use Sales

N/A

MMJ Patients

~128K

Monthly Revenue

~$46MM

Cultivation Cap

No Limit

Cultivation Licenses

21/21 (Issued/Limit)

Retail Licenses

102/102 (Issued/Limit)

Retail License Cap per Operator

4

Vertical Integration

Allowed

Delivery

Allowed

MMJ Qualifications

Less Restrictive

State Population / # Retail Licenses

Accepts Out of State MMJ

No

MMJ Patients / # Retail Licenses

~1K

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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