This market has massive future potential with very limited current potential. Texas has only three limited-THC licenses serving an extremely scarce patient population. The existing Texas license holders have tried to pivot to CBD, but this has been a struggle as their license provides little strategic moat around out-of-state competitors. These license holders will have to burn through cash to maintain their incumbent position. The state government has said they will not release more licenses unless their patient population is not being satisfied. This leaves the three existing operators with Trulieve-like first-mover advantages, but very limited opportunity in the short run.
Senator Roland Gutierrez (D) introduced 13 bills in efforts to move Texas forward in November 2020. These efforts might be paying off as top legislators, including Governor Greg Abbott (R) have indicated medical marijuana expansion is on the table for 2021. Expansion would make Texas an extremely attractive state and provide an incredible tailwind to the three incumbent operators.
There is no notable activity at this time.
This market is still in its infancy with an extremely restrictive medical marijuana program. With a state population pushing 30m, MSOs have their eye out on regulatory changes and will be racing to apply when the framework is relaxed. Watch for the ruby red state to relax medical conditions or Senator Roland Gutierrez (D) to make strides with his recently introduced legislation before state revenue becomes attractive enough for serious investment or acquisition.