Marijuana Business Factbook 2019

193 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Wholesale Cultivators | Chapter 3 MJBIZDAILY.COM • Connecticut : In late 2018, state regulators doubled the number of allowable medical marijuana dispensaries in response to patient counts surpassing the 30,000 mark, boosted in part by a significant increase in the number of qualifying conditions. While the law allows for up to 10 cultivation licenses, the state currently is staying with the four licensed growers, which likely will see a significant boost to their bottom lines given the increase in patient counts and access to dispensaries. • Rhode Island: The state, which requires vertical integration from its dispensaries but allows stand-alone cultivation, added chronic pain as a qualifying condition in 2018 and began providing reciprocity to out-of-state patients, boosting patient counts and sales. Adult-use sales were under consideration by lawmakers with strong support from the governor, but the measure did not pass this year. Cultivators may face more competition rather than more opportunity from a budget proposal by lawmakers that would license six more vertically integrated dispensaries ― effectively increasing the amount of cultivation allowed in the state. • Maryland, Ohio & Pennsylvania: Sales have been strong in the early days of each of these markets where the number of cultivation licenses is limited. Maryland posted sales of nearly $100 million during the first year of operation and is considering adding four cultivation licenses in spring 2019. Ohio sales are off to a strong start with rapid increases in patient counts after an early 2019 launch, but patients are currently hampered by high prices and limited access to dispensaries. Pennsylvania’s first-year sales exceeded $130 million, bolstered by more than 80,000 patients with more growth expected. • Michigan: Medical marijuana sales in Michigan ― the second-largest MMJ market in the nation ― are slowly transitioning to a new regulatory system that should greatly benefit cultivators that manage to secure a license in the state. Adult-use legalization passed in November 2018, with sales likely to begin in 2020 once final rules have been developed. Michigan offers sales to out-of-state medical marijuana card holders and has benefited from Ohio patients willing to risk taking MMJ across borders as they wait for regional dispensaries to open and prices to come down in their own state. Wholesale cultivation is allowed in all recreational markets. Market forces that have affected more mature adult-use states ― Colorado, Oregon and Washington state, in particular ― have not yet hit newer markets, such as: • Massachusetts: Adult-use sales began in November 2018, bringing in more than $50 million within the first five months. Massachusetts benefits from a large in-state population as well as proximity to other states on the Eastern Seaboard, where it is the first to legalize marijuana for adult use. • Nevada: Sales have been much stronger than expected, with medical and recreational sales bringing in more than half a billion dollars in 2018. The highly competitive environment is seeing strong outside investment from well-capitalized multistate operators, generating fears that small operations will be squeezed out. But the market is expected to continue to grow, benefiting significantly from tourism.