New Mexico

insights

February 19, 2021
Notable Players

A Deeper Look At This State

Regulatory Framework

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.

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, 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.

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

Medicinal Legalization

2007

Adult-Use Legalization

N/A

MMJ Patients

~102K

Monthly Revenue

~$15MM

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

MMJ Patients / # Retail Licenses

~3K

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

Top Cultivators

Notable Market Activity

Quick sentance is needed or wanted

Quick sentance is needed or wanted

Quick sentance is needed or wanted

Proprietary Sharp Capital Advisors data - compiled using various sources including state and local government data
Shit We Don't Know

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