George Mancheril, CEO of Bespoke Financial, a Los Angeles commercial lender that works with cannabis companies, said marijuana stands out as one of the only industries where businesses are experiencing deflation. “Every state is its own story, with a different regulatory structure,” said Kevin Bush, chief financial officer for Denver-based Sweet Leaf Madison Capital. Industry officials said marijuana companies in those states are better positioned to weather a downturn than operators in more mature markets such as Colorado, Oregon and Washington state.Ĭannabis businesses in those states face overproduction, falling wholesale prices and stiff competition.Īs a result, a recession could play out differently depending on the state cannabis market. Newer state markets with limited licenses – think Florida, Illinois, Massachusetts, New Jersey and New York – commonly experience relatively higher wholesale cannabis prices and a less competitive landscape. 2, company stock is up 31 per cent.The industry emerged relatively unscathed by the recession.Ĭannabis industry executives point to rising inflation – which tends to curb consumer purchases – as well as the lack of progress in Washington DC for federal marijuana reform. Shares of TerrAscend climbed 3.3 per cent to $10.13 Friday on the Canadian Securities Exchange. With a modern aesthetic, they’re designed to be comfortable to navigate for seniors, patients and first-time visitors. It will also sell products there such as dried flower, vapes, oils, pre-rolls, capsules, tinctures and topicals.Īpothecarium stores are also open in Pennsylvania and northern California. The firm began selling its Kind Tree branded products that are manufactured at the Boonton facility at its premier New Jersey dispensary. Located in the town Boonton, TerrAscend said its been scaling up operations at its 37,000 square foot greenhouse to meet demand in the rapidly growing market. Read more: TerrAscend revenues rise as Pennsylvania market bloomsīut the Toronto-based company is the first to construct a licensed cultivation and manufacturing facility in New Jersey and has only begun recording sales. Adjusted earnings before interest, taxes, depreciation and amortization increased 56 per cent quarter-over-quarter to CAD$17.8 million. With operations concentrated in Pennsylvania and California, TerrAscend reported net sales of CAD$51 million for the three months ended Sept. 19 third quarter report, CEO Ackerman said his company plans on being a major player in the state. TerrAscend recently launched its Kind Tree brand with cannabis products grown and manufacured at the company’s facility in Boonton, New Jersey. Read more: Five state cannabis could add US$9B to American market Read more: New Jersey: The East Coast cannabis tipping point Recreational cannabis sales in New Jersey are projected to hit US$1.8 billion by 2025, according to New Frontier Data. While New Jersey hasn’t yet promised the same, businesses like TerrAscend could have a strong first-mover advantage if the state makes a similar path for established operators. In Arizona, officials say they will allow medical dispensary operators to transition to the state’s incoming adult-use market. 3 to legalize recreational weed, state lawmakers have been pushing to pass legislation to set up a regulated adult-use market before Jan. Just days after New Jersey voters passed a ballot on Nov. Like a handful of companies in the industry, TerrAscend is aiming for a head start in the Garden State before legal adult-use sales are expected to begin sometime next year. “I’m thrilled to open the first of our three Apothecarium retail dispensaries in New Jersey and look forward to providing medical cannabis patients with access to the essential medicine they need,” said TerrAscend CEO Jason Ackerman in a statement. The company is only one of four retail permit holders in the densely populated region. TerrAscend says it expects to open two more Apothecarium dispensaries in northern New Jersey in 2021 upon regulatory approval. While the location will begin serving patients by appointment today, its grand opening is slated for Nov. It is only the 12th medical dispensary that has been granted permits to operate in New Jersey, a state with 8.9 milllion people and over 94,000 registered medical cannabis patients. On Tuesday, the North American cannabis operator said it received the final state permit for its Apothecarium store located in Phillipsburg, an east New Jersey town that borders Pennsylvania along the Delaware River. (CSE: TER) is opening its first dispensary in New Jersey’s under-served medical market and just before the state launches its adult-use program.
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