New Mexico

insights

November 9, 2021
Notable Players

A Deeper Look At This State

Regulatory Framework

New Mexico lawmakers advanced marijuana legalization as the House and Senate approved the bill and now awaiting the Governor's signature. Like other states have implemented, social equity, social justice and equitable opportunities for New Mexican farmers and other small businesses will be a component to the licenses issued.

Applications for production licenses and microbusinesses will be accepted by September 1, 2021, and all license applications by Jan. 1, 2022.



Notable Market Activity

March 2019 | Vireo acquires Red Barn which operates two dispensaries in addition to cultivation/processing

What's the Play?

This robust medical state has potential more than 5% patient popultions, with MSOs now that adult-use has been legalized. While there are only 35 medical awarded licenses, each operator is allowed unlimited retail locations. Cultivation licenses in the Land of Enchantment are unique in that they are capped by plant count, whereas most states work on a maximum square footage of canopy. Lawmakers are expected to law out the adult-use licensing rules and regs by July 2021 with legal adult-use sales scheduled to begin by April 2022.

Local operators should look to generate as much profitability with a first mover advantage and otherwise take the organizational steps required to maximize value in a future sale.

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

~2.1MM

Annual Tourists

~
40
MM

Medicinal Legalization

2007

Adult-Use Legalization

2021

First Adult-Use Sales

Pending

MMJ Patients

~124K

Monthly Revenue

~$23MM

Cultivation Cap

1,750 Plants

Cultivation Licenses

35/35 (Issued/Limit)*

Retail Licenses

35/35 (Issued/Limit)*

Retail License Cap per Operator

Unlimited

Vertical Integration

Required

Delivery

Allowed

MMJ Qualifications

Less Restrictive

State Population / # Retail Licenses

Accepts Out of State MMJ

Yes

MMJ Patients / # Retail Licenses

~3K

*35 vertically integrated businesses that are each allowed to open unlimited storefronts.

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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