HighRewards’ Post

🌱 Are you holding onto hope for the California cannabis market?🌱 It's a question that many in our industry grapple with. California remains the largest single cannabis market in the US, bringing in ~$5 billion in 2023. Yet, despite its size and potential, many have thrown in the towel, particularly the public MSOs who have divested and run. I’ve never given up hope. But yes, it’s evident that succeeding in California is a lot harder than in other state markets currently popping off. Some industry CEOs argue that vertical integration is the key to success in California, allowing businesses to capture as much margin as possible. Others believe that laser-focused excellence in one aspect of the supply chain—be it cultivation, scaled manufacturing, distribution, brand or retail—is what truly matters. For me, hope reigns, but my professional strategy has evolved. I take a diversified approach in my professional portfolio, making sure to not overindex on California, allocating only a slice of my resources to businesses focused on California. This allows me to keep an eye on hidden winners, stay current in the market, and maintain a comprehensive understanding of the entire industry landscape. California remains a crown jewel, and the folks that are winning here have the tenacity to compete in a near-impossible environment. What’s your take on the future of the California cannabis market? Are you still holding onto hope, or are you looking elsewhere? #CannabisIndustry #CaliforniaCannabis #BusinessStrategy #CannabisMarket #HopeAndOptimism

🌟 Exciting Update on Michigan's Cannabis Industry 🌟 This 4/20 marked a significant milestone for Michigan, with cannabis sales soaring to over $28.5 million, a 32% increase compared to last year's figures. Such growth showcases the robust market dynamics and positions Michigan as a leader in the cannabis industry, outpacing established markets like Colorado and Washington. Let's continue to lead with innovation and community engagement! #CannabisIndustry #MarketGrowth More from Green Market Report

I'm looking forward to Benzinga's CA Cannabis Market Spotlight on the 22nd in Culver City. Hope to see some of you there! Here's the context directly from Benzinga: *Six years after legalization, California's vast cannabis market faces mixed results. *Despite generating over $5.7 billion in taxes, the CA cannabis industry falls short of financial expectations due to oversupply, illicit trade and local bans. *The competitive landscape of California's cannabis sector reveals significant price pressures and a trend toward industry consolidation. *The market remains highly fragmented, with only four brands holding over a 3% share. *The dominance of Multi-State Operators in California is evident, with 14 generating over $150 million annually. #californiabusiness #cannabisindustry #cannabiscommunity

There's no shortage of conversation around the challenges in Michigan's cannabis market, but let's address the real issue: groupthink. When everyone is focusing solely on the negative, we overlook the opportunities that still exist. The industry is evolving, and blindly following the same narrative does more harm than good. 😊 On that note: As of September, California’s market decline in the past three years has left room for Michigan to close the gap with a still-growing retail landscape that’s projected to hit $3.32 billion in sales in 2024, an 8.6% increase from the $3.06 billion in 2023 sales, according to the Michigan Cannabis Regulatory Agency (CRA). Pure Michigan baby! 🐝🍯

Hello Cannabis Fam! I hope all is well. I had a conversation with leadership from Michigan's Cannabis Regulatory Agency (CRA) yesterday, and one of the key topics we discussed was the rapid decline in the price per pound of cannabis in Michigan. The CRA’s response was blunt: "It's only going to get worse." With over 30% more plants in Metrc in September 2024 compared to the same time last year, the surplus is driving prices down even further. A common suggestion to address this issue is to implement a moratorium on new licenses, especially given that Michigan is an unlimited license state. However, due to the nature of our adult-use legislation, this is simply not an option. As a business leader, I encourage others to engage with their legislators to address these challenges. I’m also curious to hear from my friends in other markets across the country. In your experience, does a limited or unlimited license system better support the success, longevity, and diversity of a Cannabis market? What do you think works best? For those of you in Michigan, I highly recommend attending the NCIA Michigan Stakeholder Summit this Thursday, featuring insights from regulators and industry leaders. If you’re interested, I have passes available. You can check out the event details here: https://lnkd.in/eusdShfS #cannabis #cannabisindustry #business #womeninbusiness #michigan #cannabisculture #socialequity #diversity #womeninleadership #ceo #womenincannabis #entrepreneurship

CT Cannabis Changes in Store for 2024...Continued! To supplement my last post, CT H.B. 5524 (relating to municipal bonds and taxes), also contains some important cannabis provisions that CRBs and industry stakeholders need to know. 1) Section 149 Cultivators can obtain a final license and begin growing with only 5,000 square feet of grow space. This is big news, and should provide a life preserver to certain cultivators who had paid the $3M fee but who are struggling to fund the buildout of the currently required 15,000 sq. ft. However, the establishment must have 15,000 sq. ft. built out by 12/31/25, or will have to pay a penalty of $500/day. 2) Requires the SEC to approve or deny, in writing, any Social Equity Plan within 30 days of the date it is submitted. Many cannabis businesses have seen delays in approval of their applications due to delay in the review and approval/rejection of these plans, so this change should help keep the approval process on track and add some measure of predictability for businesses. 3) Requires additional members be appointed to the Social Equity Council by the Black and Puerto Rican Caucuses, and provides for additional oversight of the Executive Director. More updates to come! #CannaBizCT #ShipmanCannabisTeam #CannabisLaw chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://lnkd.in/e3qZwYMX

New Jersey recently surpassed 100 open cannabis retail stores serving both medical and recreational customers. Seems like a slow growing number but this is no small feat. "Despite more than 60% of New Jersey municipalities opting out of having cannabis businesses in their jurisdictions, cannabis businesses have operating licenses in every county, and there is at least one dispensary in 20 of NJ's 21 counties." A couple of friendly reminders: 1. Municipalities may want to "go geezer" and opt out of cannabis businesses, but the professionals driving the cannabis industry's east coast expansion won't let that get in our way. 2. East Coast cannabis "deserts" are a different game. Our geographic locations and more condensed population makes this less of an issue. You can opt out if you want, but most likely it just means making your residents drive 15-20 mins to give another municipality their tax dollars. 3. Jersey strong 💪 See everyone MJ Unpacked!

On our latest sunset sesh, Mike Siebold, Managing Partner at FlowerHire, sits down with Hirsh Jain, Founder of Ananda Strategy. Ananda Strategy advises leading cannabis retailers, brands, technology businesses, and venture capital funds in the United States, Canada, and Western Europe. In the fall of 2023, Mike and Hirsh discussed cannabis industry insights, many of which played out as predicted. This conversation is a follow-up that focuses on the major impact the Ohio and Florida markets will have on the cannabis industry. This is a big election year which means a lot of change is going to happen. Listen to gain key insights, including: 🔸 Why Florida and Ohio will lead the red wave that's about to sweep the country 🔸 Why Ohio adult-use rollout is primed to be successful based on Missouri 🔸 How the distinct cultures within Ohio will cause a ripple effect 🔸 The impact of having both cannabis and abortion on the ballot 🔸 Sales projections and the regulatory climate 🔸 The Biden administration's influence on Florida adult use vote Watch the full interview here ---> https://lnkd.in/ehBbsJ7C #cannabisindustry #cannabislegalization #ohio #florida

Excellent op-ed written by our Director of Government Affairs, Hirsh Jain. You can read the full article by clicking the link below👇 🌱 “California did just $4.9 billion in legal sales in 2022, and was on pace to do far less in 2023. Often mistakenly described in the media as a “$6 billion cannabis market,” California is in fact less than a $5 billion market today (and shrinking). The state has, by far, the lowest per capita sales of any mature cannabis market. If California’s legal market was simply performing on par with Michigan’s or Montana’s, it would be generating a staggering $13 billion in annual sales.“ https://lnkd.in/gdDJbABk

The funny thing is, that drop was before they released their latest set of massive losses - the Nov 6 drop was based on FLA not voting to legalize recreational cannabis. When, that was likely the best thing for Canopy - because, it will cost Wana, Jetty, Acreage, TerrAscend far more to expand in the US than they will ever generate in incremental revenues. Canopy USA is a collection of small and/or money losing companies that will need a lot of new cash to cover current debts and/or try to expand. It operates more as an attempted distraction/source of hope for investors. S&B is about the only solid piece of business they have, likely because Jurgen will not let them anywhere near it. The medical side is doing ok, but it's about half the size of the Aurora medical cannabis business. Much like Aurora, Canopy is awful at the pure consumer side of rec cannabis - awful. Getting completely out of it would likely help the SG&A cost side and maybe get them within a light-year's distance of profitability. The thing is, they've now put the Canopy USA thing into play and they can't get out of it - so they will continue to lose money...lots and lots and lots of it.