Massachusetts

insights

February 22, 2021
Notable Players

A Deeper Look At This State

Regulatory Framework

Massachusetts is the oldest adult-use market in New England. Operators have enjoyed their first-mover advantage within this limited license state. While the Cannabis Control Commission feigned strict social equity requirements, major MSOs still found their way into the market, building out the maximum three dispensaries allowed per owner. Operators need to secure Host Community Agreements and satisfy a myriad of other state and local regulatory requirements before licenses are issued, which has slowed market development.

Notable Market Activity

October 2020 | Curaleaf acquires Alternative Therapy Group

February 2020 | Cresco acquires Hope, Heal, Health

January 2020 | STEM joint ventures with Community Growth Partners

What's the Play?

The Bay State is a profitable, limited license state that is highly attractive to MSOs. As a result of the three dispensary limit, most of the MSOs have already reached their maximum retail presence. This regulation results in numerous profitable small businesses with only a few large suitors left.

If you have an opportunity to invest in a Massachusetts operation, you won't regret it. Single store sales are reaching as high as $100MM per year despite the state not deeming cannabis an essential business during the initial COVID lockdown.

If you are an SSO, bide your time, reap the annual earnings rewards, and wait until something changes on the regulatory front to allow for a monetization event.

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

~6.9MM

Medicinal Legalization

2012

Adult-Use Legalization

2018

MMJ Patients

~100K

Monthly Revenue

~$90MM

Cultivation Cap

100K Sq.Ft.

Cultivation Licenses

221/No Limit (Issued/Limit)

Retail Licenses

298/No Limit (Issued/Limit)

Retail License Cap per Operator

3

Vertical Integration

Required

Delivery

Allowed

MMJ Qualifications

Less Restrictive

State Population / # Retail Licenses

~82K

MMJ Patients / # Retail Licenses

*The commission created 11 tiers of cultivation licenses based on square feet, ranging from up to 5K sq.ft (Tier 1) to up to 100K sq.ft. (Tier 11). Once a cultivator has sold 85% or more of its product in the past six months, it can apply to expand. Cultivators may also reduce production. Oh and the state can issue craft grow licenses, yippie.

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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