Month: December 2021

Germany Legalizing Marijuana

Germany is set to legalize marijuana for adult use by enacting drug reform when the new government coalition officially enters office. Legalization efforts have been promoted in Germany for several years, but they are finally a reality in the aftermath of the 2021 German federal election. What effect could the legalization of recreational cannabis have on the global cannabis industry? And which international cannabis operators are best positioned to enter the German cannabis market?

To learn more about the plans for Germany legalizing marijuana, keep reading this blog.

Germany’s New Government Plans to Legalize Cannabis for Adult Use

Germany has a new governing coalition: the Social Democratic Party of Germany (SDP), the Free Democratic Party (FDP), and the Greens. Once that coalition takes power, one of the first dominoes to fall will be the end of the country’s prohibition against recreational cannabis with the creation of a regulated cannabis market. It became clear in early November that the new regime would be legalizing marijuana for adult use. Now that move is set to become official with the incoming governing coalition formally agreeing to implement a cannabis legalization measure once they take power. An announcement was made in late November to trumpet the release of a 118-page plan addressing the logistics of legalizing cannabis and controlling its distribution through licensed dispensaries.

In the agreement, the incoming parties emphasized that steps were being taken to ensure that minors are protected against any dangers that might be posed by marijuana use. With that in mind, the legalization plans call for quality control measures for marijuana cultivation, as well as regulations that would prevent contaminated marijuana from being sold on the legal market. Moreover, there will be substantial restrictions on advertising for cannabis products so that cannabis companies cannot target minors. After a period of four (4) years, Germany’s joint government will review the program to make sure that legalization has not created adverse social impacts.

Other related policies that are expected to be put in place by the new government in Germany include the establishment of public services that allow individuals to have their illegal drugs tested for contamination. Anyone who brings their narcotics to one of these drug-checking locations will be able to do so without having to worry about being placed under arrest and charged with a crime.

The Future of the German Cannabis Market

What does the future hold for the German cannabis market? At present, medical marijuana is already legal in Germany. Additionally, the country has already decriminalized the possession of small amounts of marijuana for personal use.

Although there has been some opposition to legalization of recreational marijuana from German police unions and other groups, the reality is that making cannabis legal for adult use is overwhelmingly popular in Germany. (Cannabis legalization is also extremely popular in the United States, Mexico, and other countries.) Once the recreational marijuana market opens up in Germany, it could create a lot of opportunities for international cannabis operators. For example, industry-leading cannabis company Curaleaf is already looking to expand its reach into Europe with its global arm, Curaleaf International.

Contact Scythian Cannabis Real Estate

Scythian Real Estate is a privately held cannabis fund that works with sophisticated cannabis operators who need help securing financing and/or expanding into new cannabis markets. Email us today for additional information.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

Record Cannabis Revenues for Curaleaf in Q3 2021

Cannabis company Curaleaf has reported another all-time high for cannabis revenues in a single quarter. The multi-state cannabis operator saw its cannabis sales exceed $300 million during the third quarter of 2021, while also showing significant growth in terms of earnings before interest, taxes, and depreciation (EBITDA). Curaleaf’s continued financial success is representative of broader success for the U.S. cannabis industry, particularly with more and more states looking to legalize marijuana for recreational use.

To learn more about the record cannabis revenues for Curaleaf in Q3 2021, keep reading this blog.

Curaleaf Financial Results Show All-Time High for Quarterly Cannabis Revenues

Curaleaf, an international cannabis company, has released its financial and operating results for Q3 2021. According to the data, Curaleaf had third quarter revenues of more than $317 million. This was a small increase over second quarter revenues, and a significant increase of 74% over the third quarter of 2020. The gross profits on Curaleaf’s cannabis sales in the third quarter were more than $144 million.

Projections for the rest of the year are strong, with the company currently on track to reach $1.2 billion in annual revenues. This is within the range of Curaleaf’s annual revenue guidance, which was between $1.2 billion and $1.3 billion.

Curaleaf Expanding Operations into New State Cannabis Markets

Curaleaf Executive Chairman Boris Jordan reflected on the past few months and said that the company has succeeded in large part by “prioritizing growth and gaining market share.” Curaleaf Chief Executive Officer Joe Bayern echoed that sentiment by noting that the company is in excellent position for long-term growth due to the strategic development of its retail and wholesale presence in a number of burgeoning state cannabis markets.

In October, Curaleaf announced the acquisition of Los Suenos Farms in Pueblo County, Colorado, giving the company another source for cannabis cultivation and bringing Curaleaf’s total cultivation capacity to roughly 4.4 million square feet. Other major deals in the second quarter included an agreement to acquire vertically integrated multi-state cannabis operator Tryke Companies, which cultivates and supplies cannabis to dispensaries in Arizona, Nevada, and Utah. The Tryke deal, in particular, will boost Curaleaf’s cash flow and profit margins since Tryke operates Reef dispensaries in multiple cannabis markets.

Other third quarter highlights for Curaleaf included the following:

Opened cannabis dispensaries in New Jersey and Maine. Curaleaf now has a total of 109 retail marijuana locations in the United States.
Introduced the Select Squeeze brand beverage enhancer in the Michigan, New Jersey, and New York markets. The in-house branded product is infused with THC.
Launched the Cliq by Select premium vape system, an in-house branded product with a proprietary pod. The vape product is now available in several markets, including Arizona, California, Nevada, and Oregon.

Contact Scythian Cannabis Real Estate

Scythian Real Estate is a privately held cannabis real estate fund with numerous properties throughout the U.S. One of Scythian’s partners is Curaleaf, which has several dispensaries operating under the name Grassroots Cannabis. If you are a cannabis company looking to expand operations into new state markets, Scythian can assist you. Send us an email today.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.