Mentioned:
American cannabis retailers are starting to break new records for revenue.
What’s happening:
- Multiple different states saw record breaking revenue last month from the sales of both recreational and medical cannabis in the United States of America
By the numbers:
- Michigan based cannabis retailers saw a total of $294.5M USD in sales last month
- Missouri based cannabis retailers brought in $126.1M USD in sales last month
- Maryland based cannabis retailers earned $73M USD in sales last month across both recreational and medical cannabis
Why it matters:
- While many publicly traded cannabis companies have seen their valuations decline dramatically due to a disconnect between expectations of future growth and current levels of profitability, cannabis retail sales are beginning to show meaningful upticks in the United States
Going deeper:
- Ohio just recently rolled out recreational cannabis sales for the first time ever, which has led to publicly listed cannabis companies such as Cresco Labs (CSE: CL), Verano Holdings (CBOE: VRNO) and Green Thumb Industries (CSE: GTII) beginning to expand their network of dispensaries within the state
- Medical cannabis sales still represent a meaningful amount of all revenue generated by cannabis, which notably led Aurora Cannabis (NASDAQ: ACB) to recently launch a new medical CBD lozenge with a pharmaceutical company owned by tobacco giant Phillip Morris
The fine print:
- Cannabis is still not yet federally legal in the United States as it awaits a landmark reclassification from the Drug Enforcement Agency, which has restricted a full scale rollout of retail locations and hampered the ability for many companies to raise more growth capital and even access the traditional banking system in certain states
