While there are only 35 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. Outside of concentrates being restricted to a maximum of 70% THC, there is little regulation on the types of products sold.

New Mexico also enjoys a nearly five percent patient population penetration, creating one of the most robust programs in the States. Adult-use is on the horizon, two cannabis legalization bills were pre-filed in New Mexico in February 2021, less than one week after Gov. Lujan Grisham called for the reforms during her State of the State address.

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

This robust medical state has potential, with MSOs and investors simply waiting on adult-use legalization. The dream might become reality soon enough, as State Senators Daniel Ivey-Soto (D) and Cliff Pirtle (R) pre-filed two cannabis legalization bills in February 2021.

but adult-use legislation will be required to garner the attention of MSOs and investors alike. Until then, local operators should look to generate as much profitability as possible and otherwise take the organizational steps required to maximize value in a future sale.