Notable Players
No MSOs currently

A Deeper Look At This State

Regulatory Framework

Montana imposes a 20% tax on adult-use sales and a 4% tax on medical cannabis sales, so the state could see more than $50 million annually from cannabis-derived revenues. The figures released by the state revenue department show Montana is nearing the $10 million mark in tax revenue from recreational and medical marijuana sales. The legislature’s final framework allocated the first $6 million toward the HEART fund proposed by Gov. Greg Gianforte, a new substance use disorder treatment and addiction recovery program.

HB 701, the main bill that established the current legal framework for adult-use, established a tiered canopy system. Adult-use growers with a Tier 1 license can have up to 1,000 square feet of canopy, Tier 2 licenses allow up to 2,500 square feet, Tier 3 allows up to 5,000 square feet and so on.

HB 701 says an adult-use grower can only increase their license one tier at a time, and only if they show they are using the full amount of canopy they already have and are selling the marijuana they’re already producing.

HB 2095 was signed in early 2023 which extended the ban on new medical cannabis businesses to August 2026. Prior to the new legislation, the moratorium on new businesses was set to expire on August 1, 2024.

HB 128 was signed in May 2023 which extended restrictions on who regulators can accept new license applications from to July 1, 2025. The law states that regulators may only "accept applications from and issue licenses to former medical marijuana licensees that were licensed by or had an application pending with the department of public health and human services on November 3, 2020 and are in good standing with the department".

Notable Market Activity

March 2022 | Bloom Montana announced an investment from Altmore Capital for $11MM

What's the Play?

Although Montana is the 43rd populous state, it enjoys a three percent patient population, which is amongst the highest in the nation.

The broad license structure creates an environment that benefits consumers and challenges operators. The highest value is likely to be created by dispensaries with strategic locations and their own supply chain.

Given the moratorium on new applications, its hard for new operators to enter the market any time soon. Retailers who are able to reach adventure seekers flocking to Big Sky and Yellowstone stand the best chance of success in this small market.

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

~1.1MM

21+ Population

~0.8MM

Annual Tourists

~
13
MM

Medicinal Legalization

2004

Adult-Use Legalization

2020

First Adult-Use Sales

2022

MMJ Patients

~37K

Monthly Revenue

~$28.7MM

Cultivation Cap

120K Sq.Ft.*

Cultivation Licenses

330/No Limit (Operational/Limit)

Retail Licenses

418/No Limit (Operational/Limit)

Retail License Cap per Operator

No Limit

Vertical Integration

Allowed

Delivery

Allowed

MMJ Qualifications

Less Restrictive

Adult Population/ # Retail Licenses

~1.9K

Accepts Out of State MMJ

Yes

MMJ Patients / # Retail Licenses

* A Tier 1 canopy license allows for a canopy of up to 1K sq.ft. at one registered premises. A minimum of 500 sq.ft. must be equipped for cultivation. A Tier 2 canopy license allows for a canopy of up to 2,500 sq.ft. at up to two registered premises. A minimum of 1,100 sq.ft. must be equipped for cultivation. A Tier 3 canopy license allows for a canopy of up to 5,000 sq.ft. at up to three registered premises. A minimum of 2,600 sq.ft. must be equipped for cultivation. A Tier 4 canopy license allows for a canopy of up to 7,500 sq.ft. at up to four registered premises. A minimum of 5,100 sq.ft. must be equipped for cultivation. A Tier 5 canopy license allows for a canopy of up to 10,000 sq.ft. at up to five registered premises. A minimum of 7,750 sq.ft. must be equipped for cultivation. A Tier 6 canopy license allows for a canopy of up to 13,000 sq.ft. at up to five registered premises. A minimum of 10,250 sq.ft. must be equipped for cultivation. A Tier 7 canopy license allows for a canopy of up to 15,000 sq.ft. at up to five registered premises. A minimum of 13,250 sq.ft. must be equipped for cultivation. A Tier 8 canopy license allows for a canopy of up to 17,500 sq.ft. at up to five registered premises. A minimum of 15,250 sq.ft. must be equipped for cultivation. A Tier 9 canopy license allows for a canopy of up to 20,000 sq.ft. at up to six registered premises. A minimum of 17,775 sq.ft. must be equipped for cultivation.

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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