Ohio Senator Huffman recently introduced legislation to allow physicians to recommend medical cannabis for any medical condition. The efforts to open the program for Ohio residents to easily get an MMJ card will ultimately expand the current medical program while the lawmakers figure out adult-use legalization.
While Ohioans wait for adult-use legalization the state is making strides to increase the current medical market. Licensed cultivators can apply to double the size of canopy from 25,000 sq. ft. to 50,000 sq. ft. for Level 1 and from 3,000 sq. ft. to 6,000 sq. ft. for Level 2 operators.
The state's Board of Pharmacy approved the licensing of 73 new dispensaries bringing the total to 130 statewide. The additional dispensaries are highly desired in the Buckeye State of nearly 12 million people, with many driving an hour to purchase medical marijuana. Nearly 1,500 applications were filed in November 2021 with the hopes of wining through the lottery process in the coming year.
The group of Ohioans in favor of adult-use legalization have formed the "Coalition to Regulate Marijuana Like Alcohol" to collect enough signatures to advance legalization. The group hopes to collect 133,000 signatures by the end of 2021. If successful the Ohio Legislature would have four months to consider the coalition's initiated statue.
Meanwhile Ohio Republican Senators have introduced an adult-use cannabis legalization bill to the House over the summer. The proposed adult-use legalization would allow the existing Level 1 cultivators to expand their canopy to a max of 100,000 sq. ft. of canopy and the Level 2 cultivators to expand up to 15,000 sq. ft..
October 2021 | Acreage Holdings acquires Green Leaf Gardens LLC cultivation, processing and retail operations in Ohio
July 2021 | Verano acquires Mad River Remedies
July 2021 | Columbia Care acquires four dispensaries from CannAscend for $14.2MM
March 2021 | AYR Strategies acquires cultivator Parma Wellness Center LLC in a $17MM cash deal
October 2020 | GTI announces a manufacturing sale-leaseback for $32.2MM with IIPR
July 2020 | Verdant Creations sells four of its five dispensaries to Cresco Labs
The medical market expansion is underway with the regulators allowing the licensed cultivators to apply for expansion of canopy from 25,000 sq. ft. to 50,000 sq. ft. for Level 1 and from 3,000 sq. ft. to 6,000 sq. ft. for Level 2 operators. The market has been constrained with the limited canopy limits and with and 73 new dispensaries to be issued in the coming year, the expansion is imperative.
Investors have ample opportunity to invest in attractive ROI projects over the next several years as the medical market expands and ultimately transitions to adult-use.
Existing license holders should solidify their market positions and hold on for a fun ride.
*Cultivators are licensed as either Level I, limited to 25K sq.ft., and expansions up to 50K sq.ft. or Level II, limited to 3K sq.ft. with expansions up to 6K sq.ft. The department can then approve Level I and II growers for up to 75K sq.ft. and 9K sq.ft. of expansion, respectively.