Maryland is known for crabs, football, and soon…cannabis.
“Crab cakes and football – that’s what Maryland does!”
That quote is from Wedding Crashers, the 2005 comedy starring Vince Vaughn and Owen Wilson – it’s a line that fans of the Maryland Terrapins and Baltimore Ravens still like to share after a big win.
Over the last year, there have been rumors that a Wedding Crashers 2 may be in the works.
If there is a sequel and that line is included, I’d like to offer a suggestion.
It should be updated to say, “Crab cakes, cannabis, and football – that’s what Maryland does!”
Because in its first year of medical cannabis sales in 2017, Maryland recorded more first-year sales than Illinois, New York, and Massachusetts.
Sales have also steadily increased each year:
2018: $109 million
2019: $252 million
2020: $450 million (estimate from the Maryland Medical Cannabis Commission)
If Maryland (6.04 million residents) legalizes recreational sales in the next three years, research firm BDS Analytics projects that it could be a $1 billion market by 2024. For perspective, Florida (21.48 million residents) sold $1.2 billion in cannabis last year
That’s a cannabis cash cow, and I know of one company that’s working to grab the biggest slice of those sales.
It already has the #1 market share in the state based on licensed operations and recently completed an acquisition (plus several other transactions) to build an even more dominant position.
Supersizing Maryland Operations
Curaleaf Holdings Inc. (OTC: CURLF) is the company with the #1 market share in Maryland by market operations and wants to expand its leading position in the state.
It recently sold its operations with a smaller cultivator and processor to TerrAscend Corp. (OTC: TRSSF) for $27.5 million, as well as its 100% interest in the dispensary Elevate Takoma to PharmaCann.
With the sale of those assets, Curaleaf is focusing on running a larger growing operation through the acquisition of Maryland Compassionate Care and Wellness, which runs a cultivation and processing facility in Taneytown and a dispensary in Gaithersburg.
“Overall, the Maryland market continues to see impressive growth with over 115,000 certified cannabis patients. The actions we are taking aim to further strengthen Curaleaf’s position as a leading cannabis operator in Maryland as well as reaffirm our commitment to best serving our customers across the state,” Curaleaf CEO Joseph Lusardi said in a press release.
This is all part of Curaleaf’s plan to become the “Coca-Cola of Cannabis.”
Curaleaf will be everywhere its customers are while making sure that it has the top brands in each state.
Make sure to check out Executive Director Don Yocham’s Deep Dive into Curaleaf where he discusses exactly how much higher he expects the stock price to climb. Watch that here.
All the best,
Partner, RADD Capital
Before You Go: In the latest episode of In the Green, Norton Singhavon, the CEO of GTEC Holdings (OTC: GGTTF), was asked to share what cannabis stock he would buy right now if he couldn’t buy his own. Norton told us that he would buy Icanic Brands (OTC: ICNAF). So we have provided a free S.W.O.T. analysis of Icanic for all of our members that shows the strengths, weaknesses, opportunities, and threats with Icanic. Your free access is available here.
June 02 2021