Record Cannabis Revenues for Curaleaf in Q3 2021

Curaleaf Q3 2021 Cannabis Revenues
Curaleaf Q3 2021 Cannabis Revenues

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.


Columbia Care Has Record Q3 2021 Cannabis Revenues

Columbia Care Q3 2021 Cannabis Revenues
Columbia Care Q3 2021 Cannabis Revenues

Cannabis company Columbia Care had record Q3 2021 cannabis revenues, with third quarter revenues topping $132 million. The company recently released its financial and operating results to the public, and the numbers are staggering. In addition to more than $132 million in quarterly revenues from medical marijuana sales, Columbia Care also posted an adjusted gross profit of more than $64 million. The promising financial figures bode well for the cannabis operator going forward, as well as for the cannabis industry as a whole.

To learn more about Columbia Care’s record quarterly results, keep reading this blog.

Columbia Care Posts Record Quarterly Revenue for Cannabis Sales

Columbia Care, one of the country’s largest and most successful multi-state cannabis operators, recently released its quarterly economic report. The data shows that the company posted an all-time record for a single quarter during Q3 2021, with $132.3 million in cannabis revenues. This represented a substantial 144% increase over the third quarter of 2020, and a 21% increase over the second quarter in 2021.

These were the company’s top cannabis markets in terms of revenue during the third quarter:

  • California: Columbia Care upgraded its cultivation facilities in California to increase capacity and yield, as well as the quality of marijuana production in the state.
  • Colorado: Columbia Care saw harvesting in Trinidad set records for grams per cannabis plant and THC levels.
  • Massachusetts: Columbia Care had record wholesale revenues in the state, with a major boost coming from the start of adult use sales at the Boston Cannabist dispensary.
  • Ohio: Columbia Care had record retail transaction volume in the state, fueled in part by the expansion of Columbia Care brand flower to more than 90% of Ohio dispensaries.
  • Pennsylvania: Cannabis revenues at Pennsylvania dispensaries were up approximately 85% over the third quarter of 2021. The company also plans to introduce Columbia Care brand flower and other products to PA dispensaries in the fourth quarter.

Columbia Care Projects All-Time High for Annual Cannabis Revenues in 2021

Given the steady increase in revenues during the first three quarters of 2021, Columbia Care now projects to hit nearly $500 million in total cannabis revenues for the entire year. After the quarterly financial results were revealed, the company provided revised guidance to show projected annual revenues of between $470 million and $485 million.

Nicholas Vita, the CEO of Columbia Care, said that the company expects to have strong growth in the months ahead as they continue to execute on a nationwide strategy that includes opening new dispensaries and rolling out new cannabis products. Vita noted that Columbia Care opened dispensaries in New Jersey and Missouri during the third quarter, as well as converting existing Columbia Care locations to Cannabist retail stores.

Future Looks Bright for Cannabis Industry Leader Columbia Care in 2022 and Beyond

Columbia Care is an industry leader in providing medical marijuana to qualifying patients throughout the United States. The company is dedicated to increasing the health and wellness of individuals by emphasizing individualized medical care and treatment involving high-quality cannabis, which is offered through in-house brands such as ClaraCeed, EleCeed, Medical Cannabis, and TheraCeed. Columbia Care operates in several states, with 39 current cannabis licenses in 15 different markets. The company also has 63 facilities that are utilized for either cannabis operation/distribution or development of new cannabis products.

Columbia Care is well positioned to scale in a number of lucrative cannabis markets, including New Jersey, New York, and Virginia. CEO Nicholas Vita observed that October saw the company complete “the largest single-day national flower brand launch in the history of the industry.”

Contact Scythian Real Estate Today

Scythian Real Estate is a privately held cannabis fund that has partnered with a number of major cannabis operators, including Columbia Care. Scythian’s relationship with Columbia Care extends to more than a dozen dispensaries operating under The Green Solution (TGS) and for which Scythian provided financing through sale-leaseback deals.

For more information about Scythian Real Estate, send an email.


Record High for Colorado Cannabis Cultivation in 2020

Colorado Cannabis Cultivation
Colorado Cannabis Cultivation

Retail sales of cannabis are at an all-time high in many states where marijuana has been legalized for adult use, and Colorado cannabis cultivators responded to the increased demand for recreational marijuana by growing a record amount of cannabis in 2020. As flower, concentrates, edibles, and other recreational marijuana products continue to sell extremely well at dispensaries in 2021, the expectation is that cannabis cultivators will need to produce even more product for Colorado’s adult-use market.

To learn more about the effect of recreational marijuana retail sales on Colorado cannabis cultivators, keep reading this blog.

Colorado Cannabis Market Thriving with Increased Sales of Flower, Concentrates, and Edibles

Data recently released by the Colorado Department of Revenue shows that major cannabis operators approved for cultivation in Colorado grew approximately 1.8 million pounds of cannabis in 2020. This represented a sizable 24% increase over the total amount of cannabis grown in 2019. Moreover, those 1.8 million pounds of cannabis came from roughly 3.7 million plants.

According to the Department of Revenue report, more than two-thirds of all cannabis produced in Colorado last year was eventually sold on the adult-use marijuana market. Data indicates that 72% of retail sales were for recreational marijuana, while the remaining 28% of sales were for medical marijuana. The vast majority of cannabis concentrates (85%), edibles (89%), and infused products (87%) were sold on the adult-use market. These sales figures align with the recent trend in cannabis licenses in Colorado: the number of adult-use licenses issued to dispensaries rose by nearly 2% last year, while the number of medical marijuana licenses declined slightly.

Colorado Cannabis Cultivators Growing Marijuana for Retail Market at Record Pace

The increase in cannabis cultivation in Colorado was a direct result of the surge in demand for legal marijuana, particularly adult-use marijuana. The total revenue generated by all cannabis sales in Colorado during 2020 was $2.19 billion, which was substantially higher than the $1.79 billion in cannabis revenues generated during 2019. So far in 2021, the numbers are even higher: over the first six (6) months, total marijuana sales eclipsed $1.35 billion.

Additionally, the increased demand for cannabis on the retail market has led to a shorter seed-to-sale time: it took just 126 days for cannabis to go from a cultivation site to a dispensary last year. This was six fewer days than it took, on average, in 2017.

Contact Denver-Based Scythian Real Estate Today

Scythian Real Estate is a privately held cannabis fund that works with major cannabis operators like The Green Solution, Columbia Care, and Schwazze. For more information about Scythian Real Estate, send an email.


California Sets Record for Cannabis Tax Revenues

California Cannabis Revenues
California Cannabis Revenues

California state officials revealed data showing that recreational cannabis tax revenues for the most recent fiscal year set a new all-time record. During the fiscal year, which ran from July 2020 through June 2021, sales from adult-use marijuana at dispensaries located throughout the state generated more than $800 million in tax revenues. The incredible success of the California recreational marijuana market bodes well for the future of the cannabis industry not just on the West Coast, but across the United States.

To learn more about California’s promising cannabis economy, keep reading this blog.

California Cannabis Market Generating Record Revenues

The California Legislative Analyst’s Office (LAO), which is tasked with providing fiscal advice to the California Legislature, recently released a report showing that adult-use marijuana tax revenues for the 2020-2021 fiscal year totaled approximately $817 million. This represented a whopping 55% year-over-year increase when compared to the previous fiscal year. Moreover, the combined excise and cultivation tax revenue collected from cannabis operators during the fiscal year’s 4th quarter, which ended in June, exceeded $210 million. This was the single-largest quarter in the history of California’s legal cannabis market. Beyond that, these numbers, which are merely estimates, could rise when the official sales figures are tallied by the California Department of Tax and Fee Administration.

The booming cannabis market in California is representative of the strong sales in other states where cannabis has been legalized for recreational use. Remarkably, the retail cannabis market in California and other states has thrived despite the adverse effects of the COVID-19 pandemic on just about every other aspect of the economy. While many retail businesses were forced to shutter their doors and lay off workers due to struggling sales numbers, the cannabis industry saw a rise in sales revenues as more and more consumers looked for ways to relax during the pandemic.

How Does California Collect Taxes from Retail Marijuana Sales?

The California LAO report accounts for two types of taxes on adult-use marijuana:

  1. A cultivation tax on cannabis that is grown and cultivated to be sold on the retail market later.
  2. An excise tax on retail cannabis sold at state-licensed dispensaries.

One type of cannabis tax that is missing from this data is sales taxes that are collected at the point of sale. Additionally, depending on the municipality, certain California cities and towns also collect additional taxes from retail dispensaries.

Importantly, several California municipalities are expected to issue marijuana business licenses over the next few years. For example, Red Bluff, Chico, Redwood City, Fresno, and Costa Mesa have pending retail licenses in late 2021 and early 2022. Additionally, West Sacramento, San Jose, Visalia, San Bernardino, and Long Beach are likely to issue retail marijuana licenses in 2023.

Contact Scythian Real Estate for Information on Cannabis Operator Financing

Scythian Real Estate is a privately held cannabis real estate fund with properties throughout the United States. If you are a cannabis operator looking to expand your operations into California or anywhere else where cannabis is legal, Scythian can help. Send us an email today.


Annual Cannabis Sales to Hit $43 Billion by 2025

Retail Cannabis Sales
Retail Cannabis Sales

The legal cannabis market is booming throughout the United States, and it appears that the industry is going to continue to thrive in the years ahead. A recent economic study found that annual retail sales of marijuana will eclipse $43 billion by 2025. These financial projections, along with optimism about federal legalization efforts, have cannabis companies and their investors excited about what the future holds for the industry in general.

To learn more, keep reading this blog.

Study: Retail Cannabis Market Will Remain Strong

New Frontier Data, a company that specializes in cannabis market research, has released an economic analysis that projects retail sales of both adult-use marijuana and medical marijuana to reach an astonishing figure in just a few years. According to the study, the legal cannabis market in the U.S. will get even stronger as more and more states look to pass their own legalization laws. By 2025, the study indicates, annual sales of cannabis at retail dispensaries in the United States will be around $43 billion. To put that number in perspective, total combined sales of adult-use marijuana and medical use marijuana were roughly $20 billion in 2020.

In the current climate, roughly two-thirds of all retail marijuana transactions involve recreational marijuana and related products, and the New Frontier Data research shows that the majority of retail cannabis sales will continue to involve adult-use marijuana. Still, sales of medical cannabis sales should remain strong, particularly as more and more people look for alternative ways to relieve pain and cope with debilitating medical conditions and diseases.

State Cannabis Markets Are Thriving

The legal marijuana market has hit historic levels in 2021, with each new month seeing retail cannabis sales in states across the country set a new all-time record. For example, Colorado recently recorded a new quarterly high for adult-use cannabis sales.

In addition to sales surging in states with established cannabis markets, several more states are likely to generate millions of dollars in cannabis revenues in the coming months when their own markets are established. As many as 10 new state markets are expected to be activated over the next two years. This includes burgeoning cannabis markets in both New York and New Jersey, where state lawmakers have finally begun implementing the framework for legal sales of recreational marijuana by licensed cannabis operators. These markets could be vital to the success of the cannabis industry generally, especially since market research forecasts that more than 40% of cannabis demand in the U.S. will be met by legal transactions in regulated cannabis markets by 2025.

Is Federal Legalization of Cannabis on the Horizon?

All indications are that federal legalization of cannabis for recreational use is on the horizon. Lawmakers in the United States Congress have been working hard to get bipartisan approval in both the House and the Senate for national legalization, and the expectation among cannabis industry insiders is that it is probably only a matter of time before certain obstacles and regulatory issues are overcome. The recent enthusiasm for legal cannabis at the federal level has coincided with the strong growth of cannabis markets in states where either recreational marijuana or medical marijuana is already legal, suggesting that some legislators may see an opportunity for additional tax revenues at a time when government spending has become a major talking point for the upcoming 2022 election. The fact that state and local cannabis markets thrived during the COVID-19 pandemic may also be a factor in the support for national cannabis reform measures.

Contact Scythian Cannabis Real Estate

Scythian Real Estate is a privately held cannabis fund that assists cannabis operators who are interested in securing financing. Email us today for additional information.


50% of Americans Have Tried Marijuana

Marijuana Use
Marijuana Use

A nationwide poll shows that approximately 50% of Americans have tried marijuana at least once. The results of the poll confirmed what many cannabis industry observers have long known: that cannabis use is becoming more and more popular, particularly among younger adults. What does the increased acceptance of marijuana use mean for the future of marijuana legalization efforts? Keep reading this blog to learn more.

Gallup Poll: Roughly Half of All Americans Report Using Marijuana At Least Once

A recent poll conducted by Gallup, the company known for large-scale public opinion surveys, found that 49% of U.S. adults have used marijuana. The poll asked respondents whether they had “ever happened to try marijuana,” and nearly half of respondents answered “yes.”

Voters in several states passed marijuana legalization measures in the 2020 election, and additional states like New Mexico, New York, and Virginia have also legalized marijuana for recreational use in 2021. These new cannabis laws have passed at the same time that cannabis use has become more accepted, and the Gallup survey results are just another indication of how normalized and mainstream marijuana is these days. Whereas earlier versions of the Gallup poll found support for cannabis legalization holding steady at roughly 30%, there was a noticeable surge in support in the most recent poll.

The numbers also show a noticeable difference between young adults and older adults when it comes to marijuana use. While roughly 50% of Millennials, Gen X, and Baby Boomers responded that they have “experimented” with marijuana, that number drops considerably to just 19% among people who were born before 1946. It is also worth noting that marijuana use by men (16%) is nearly twice as high as marijuana use by women (9%).

Regular Cannabis Use Also on Rise Among U.S. Adults

Although there are nearly as many people who have tried marijuana as those who have not, the number of individuals who “actively” smoke marijuana is significantly lower. According to the Gallup poll, 12% of adults in the United States use cannabis on a regular basis. However, this still represents an increase over earlier polls: in 2013, just 7% of Americans answered “yes” when asked if they routinely use cannabis. Additionally, Gallup observed that the percentage of American adults who admit to smoking marijuana in 2021 is nearly as high as the percentage of American adults who admit to smoking cigarettes.

It is also possible that some survey respondents answered “no” when asked whether they actively smoke cannabis because they use cannabis through alternative methods of consumption like vaping or cannabis edibles. Both of these methods have become very popular as consumers grow more sophisticated and educated about cannabis potency and THC levels.

Overwhelming Support for Legalization of Cannabis for Adult Use

The results of the 2021 Gallup poll match the results of a Gallup survey conducted in 2020. That earlier survey showed overwhelming support for cannabis reform measures to legalize marijuana for recreational use: 68% of respondents indicated that they were in favor of cannabis legalization, the highest number ever recorded. The disparity between cannabis use (roughly 50%) and support for cannabis legalization (68%) suggests that many Americans don’t need to have tried marijuana in order to back legalization efforts. It also bodes well for future attempts to legalize cannabis, particularly as more states look to either put cannabis reform measures on the ballot in 2022 or pass legalization bills directly through the legislature.

Contact Scythian Cannabis Real Estate

Are you a cannabis operator looking to secure financing as you expand into a new cannabis market or attempt to bolster your existing operations? Scythian Real Estate is a privately held cannabis fund that can assist you. Email us today.


Columbia Care Q2 2021 Sets Record for Quarterly Cannabis Revenues

Columbia Care Q2 2021 Cannabis Revenues
Columbia Care Q2 2021 Cannabis Revenues

Cannabis company Columbia Care has reported another record quarter for cannabis revenues. For the second quarter that ended on June 30, 2021, Columbia Care generated roughly $110 million. The company’s success continues a trend that pre-dates the COVID-19 pandemic, and there is no indication that the positive results will slow down anytime soon. What does the future hold for the cannabis industry generally, and for Columbia Care in particular? Keep reading this blog to find out.

Columbia Care Generates $110 Million in Cannabis Revenues in Second Quarter 2021

According to financial and operating results reported to investors on August 12, Columbia Care generated $109.7 million in cannabis revenues during the second quarter of 2021. This was a 19% increase over revenues from the first quarter of 2021, and a staggering 232% increase over revenues from the second quarter of 2020.

Nicholas Vita, the CEO of Columbia Care, said that the cannabis company’s strong financial results are evidence of its commitment to expanding and scaling in different markets throughout the U.S., including California, Colorado, and Pennsylvania. Vita noted that Columbia Care increased its overall wholesale activity in “new and maturing markets” to strengthen the company’s national portfolio of cannabis properties. Vita also emphasized the recent acquisition of Green Leaf Medical, which was officially completed during the second quarter.

Columbia Care also continued a major rollout of its Cannabist retail storefront. The company currently has five (5) Cannabist dispensaries that sell company-branded cannabis products directly to consumers, as well as related in-house brands and products like Plant Sugar edibles, Seed & Strain flower, Triple Seven flower, and Amber and Platinum Label CBD.

Columbia Care Dispensaries Show Strong Results in California, Colorado, Massachusetts, Ohio, and Pennsylvania

The quarterly financial results from Q2 2021 indicate that the top five (5) markets for Columbia Care were California, Colorado, Massachusetts, Ohio, and Pennsylvania. This should not be surprising, since most of these are mature cannabis markets in which Columbia Care has a strong retail presence.

Columbia Care also posted impressive quarterly financial results in the following states:

  • Arizona: Columbia Care showed 54% growth in Arizona cannabis revenues when compared to Q2 2020, with the higher revenues fueled by competitors’ flower shortage that led to increased demand for the company’s Seed & Strain flower brand.
  • Florida: Columbia Care focused on expanding its in-house product lines, including edibles and other cannabis products. The result was a 46% increase in Florida cannabis revenues over the previous quarter, and a 335% year-over-year increase when compared to Q2 2020.
  • Illinois: Columbia Care launched several new cannabis products in Illinois, including Seed & Strain vapes and Triple Seven flower, which increased foot traffic to the Cannabist Villa Park dispensary.
  • New Jersey: The company’s NJ cultivation facility completed its first harvest, which will provide cannabis products to medical marijuana patients via wholesale partnerships. Columbia Care also continued development of Cannabist dispensaries located in Deptford and Hamilton Township.
  • New York: Columbia Care received preliminary approval to start operations at a cannabis cultivation facility located in Long Island, NY. The company also began the process of adding four (4) more medical marijuana dispensaries in New York.
  • Virginia: Columbia Care continued its active pursuit of five (5) retail dispensaries in Virginia, which would give the company a total of 12 dispensaries in the state.

Not only is Columbia Care succeeding in the current climate that is favorable to cannabis legalization, but there is also plenty of optimism among cannabis industry insiders about what the future holds for the company. Columbia Care CEO Nicholas Vita pointed toward the many states that have recently legalized marijuana for recreational use, including New Jersey, New York, and Virginia. Vita said that as these states transition to adult use, Columbia Care will have more opportunities than ever before to reach new cannabis markets.

Contact Denver-Based Scythian Real Estate for Information About Cannabis Property Financing

Columbia Care is a leading cannabis operator in Colorado, where the company has a number of The Green Solution (TGS) dispensaries. The Green Solution, and by extension Columbia Care, has an established relationship with Scythian Real Estate, a privately held cannabis real estate fund with more than a dozen properties currently serving as TGS dispensaries.

For more information about Scythian Real Estate, send an email today.


Curaleaf Has Record Second Quarter 2021 for Cannabis Revenues

Curaleaf Q2 2021 Cannabis Revenues
Curaleaf Q2 2021 Cannabis Revenues

Cannabis company Curaleaf had a record second quarter 2021 for cannabis revenues. Curaleaf recently released its financial and operating results for Q2 2021, and the results show that the global business generated more than $300 million from cannabis operations over a three-month period. This represented a significant increase in returns for Curaleaf over the previous quarter, as well as a continuation of an upward trend dating back to last year.

What does Curaleaf’s continued success mean for the cannabis industry in general Keep reading to find out.

Curaleaf Generated Record $312 Million in Cannabis Revenues During Q2 2021

Curaleaf’s official financial results for the recent quarter ending on June 30 confirmed the company’s status as one of the world’s largest providers of cannabis products for consumers in both the United States and Europe. Those results were revealed to investors, as well as the public, in a company earnings call on August 9. Curaleaf achieved more than $312 million in cannabis revenues during the second quarter, with U.S. operations accounting for $307 million of that total. This was a 20% increase over Q1 2021, and a remarkable 166% increase over total revenues of $117 million in the second quarter of 2020.

Some of Curaleaf’s most notable domestic business transactions during the second quarter included the following:

  • Acquiring Los Suenos, a 66-acre outdoor grow facility located in Colorado.
  • Opening new cannabis dispensaries in Illinois, Maine, New Jersey, and Pennsylvania.
  • Launching a strategic partnership with Rolling Stone, including a specific focus on Curaleaf’s Select brand.

Cannabis Industry Excited About the Curaleaf’s Future

Boris Jordan, Curaleaf’s executive chairman, said that the company’s future is bright in no small part because it has “a strong foundation” that includes expansion into burgeoning cannabis markets in New York, New Jersey, and Connecticut. According to Jordan, these new adult-use markets in the Eastern U.S. offer up to $8 billion in “annual addressable market opportunity” for Curaleaf.

Joe Bayern, the Chief Executive Officer of Curaleaf, said that the company’s record second quarter results are a strong indicator of its position as an industry leader for both cannabis cultivation and distribution. Bayern added that Curaleaf’s “strategic investments in innovation and technology will deliver processing advantages and consumer-focused product differentiation” to fuel company growth in the years ahead.

Curaleaf International Gives Cannabis Company Strong Presence in European Market

During Q2 2021, Curaleaf also completed its acquisition of EMMAC, the largest vertically integrated cannabis business in Europe. Additionally, the company established Curaleaf International in the second quarter, which should provide further opportunities for financial growth. Curaleaf Executive Chairman Boris Jordan noted that Curaleaf’s entry into the Greater European cannabis market gives the company access to “a potential market size twice that of the United States.”

Contact Scythian Cannabis Real Estate Today

Curaleaf is one of the largest and most successful cannabis companies in the United States, with 108 dispensaries in 23 states, as well as 22 cannabis cultivation sites and more than 30 cannabis processing sites. One of Curaleaf’s partners is Scythian Real Estate, which works with many of the country’s most sophisticated cannabis operators. Scythian leases the properties for three (3) dispensaries operated by Curaleaf through Grassroots Cannabis in North Dakota and Pennsylvania.

If you are a cannabis operator interested in expanding into a new cannabis market, contact Scythian today.


Colorado Cannabis Sales Set Record in Q1 2021

Colorado Cannabis Sales
Colorado Cannabis Sales

Colorado continues to set new records when it comes to cannabis sales. Data maintained by the state government shows that marijuana sales in Colorado surpassed $560 million during the first three months of 2021, marking a quarterly high. The staggering success of legal cannabis bodes well for cannabis dispensaries and operators Colorado, as well as the cannabis industry more generally. Keep reading this blog to learn more.

Recreational & Medical Marijuana Sales Hit Record Highs in Colorado

Sales data from the first quarter of 2021 shows that cannabis is more popular than ever in Colorado. Dispensaries that sell recreational marijuana reported more than $560 million in sales in January, February, and March of this year. The cannabis sales figures come from the Colorado Department of Revenue, which tracks retail sales through tax revenues collected from dispensaries. (While the state keeps track of both recreational and medical cannabis sales, it does not monitor sales figures for cannabis accessories or related products such as pipes and grinders.)

In March of 2021, dispensaries reported approximately $207 million in cannabis sales. These sales came with three different taxes imposed by the state:

  1. Sales Tax: There is a 2.9% sales tax on any recreational or medical cannabis sold in dispensaries.
  2. Retail Tax: Colorado imposes a heavy 15% tax on the front-end for cannabis operators who sell adult-use cannabis in dispensaries.
  3. Retail Excise Tax: There is also a 15% tax paid directly by the businesses, which is similar to the tax typically imposed on goods like gas, alcohol, and cigarettes.

Cannabis Sales Generate Tax Revenues to Fund Colorado Government Programs

The remarkable surge in Colorado cannabis sales during the COVID-19 pandemic merely continued an upward trend that has been clear since adult-use cannabis became legal in 2014. Since that official beginning to the legal Colorado cannabis market, the state has generated more than $1.7 billion in tax revenue from dispensary sales.

The popularity of cannabis among Colorado residents and tourists has pumped money back into Colorado: the state uses cannabis tax revenues to fund the public school system, health care, police departments, important infrastructure projects, and other state and local government programs in need of financing. Under laws established by Colorado legislators when marijuana was first made legal in 2014, the state must place at least 71% of all cannabis sales tax revenues into a Marijuana Tax Cash Fund, and this fund is then used for many of these government programs. Another 12% of sales tax revenues must be used exclusively for the Colorado Public School Fund, and the remaining 17% goes into a General Fund to support health care, human services, and the state’s correctional system.

Contact Scythian Cannabis Real Estate for Information on Sale-Leaseback Deals

Scythian Real Estate is a Denver-based cannabis real estate fund that helps sophisticated cannabis operators get needed financing through sale-leaseback transactions. Scythian works with large cannabis companies across the U.S., including operators with a presence in the nation’s most mature cannabis market in Colorado. If you are a cannabis company interested in adding capital, email Scythian today.


Amazon Changes Its Workplace Cannabis Policy

Amazon Cannabis Testing Policy
Amazon Cannabis Testing Policy

Amazon has one of the largest workforces in the entire country, with more and more warehouses and shipping centers popping up in every state as demand for convenient deliveries continues to grow. For years, Amazon’s workers were required to take random drug tests to screen for cannabis use. This cannabis policy has begun to seem outdated recently, especially as many states have legalized marijuana for recreational use. Now Amazon has finally adapted by changing its policy and ceasing testing for cannabis use in most workplace roles.

Do Amazon’s changes to its workplace cannabis policy suggest more significant changes on the horizon for federal cannabis law? And what could this mean for the cannabis industry? Keep reading this blog to learn more.

Amazon Will No Longer Test Workers for Marijuana Use

Amazon recently announced that it will be altering its corporate drug testing rules for most of the company’s workers. As a result of the changes, workers in non-transportation roles with Amazon will no longer be screened for marijuana use. This will not only have an impact on people currently working for Amazon, but it will also affect individuals who apply for Amazon jobs since they will no longer be required to pass a drug test before being hired.

There are still a few exceptions to the modified cannabis testing policy at Amazon. For example, the retail giant will still conduct random checks of workers to ensure that no one is impaired by drugs or alcohol while working on the job – especially when impairment could place other workers, or members of the public, at risk of injury. Additionally, Amazon will still conduct drug tests when there is an on-the-job accident.

Amazon Expresses Support for Federal Cannabis Legalization with the MORE Act

While several states, including Alabama, New Mexico, and Virginia, have legalized adult-use cannabis in the aftermath of the 2020 election, the legalization of cannabis at the federal level has not yet happened due to strong opposition from most Republican lawmakers in the U.S. Senate. However, there appears to be momentum for federal legalization efforts, with a majority of the public voicing support for an end to the criminalization of marijuana possession and use.

Amazon has now joined the chorus of people, businesses, and other institutions that are calling for legalization. In addition to changing its employee drug testing policies, the business behemoth has publicly expressed support for the Marijuana Opportunity Reinvestment and Expungement Act of 2021. That proposed legislation, also known as the MORE Act, was recently reintroduced for consideration by the U.S. House of Representatives. The bill would amend the Controlled Substances Act (CSA) and remove marijuana from the list of federally banned substances. Beyond that, the proposed law would potentially allow individuals currently serving prison sentences for cannabis offenses to be resentenced.

After Amazon issued an official announcement about its support for the MORE Act, the deputy director of the National Organization for the Reform of Marijuana Laws (NORML) issued a statement for the non-profit advocacy group. Paul Armentano, speaking on behalf of NORML, said that drug screenings of applicants for employment are a “discriminatory” remnant of the past that have no place in a country where marijuana is now legal for either recreational or medical use almost everywhere.

Contact Denver-Based Scythian Cannabis Real Estate

Scythian Real Estate is a Denver-based cannabis real estate fund that works with sophisticated cannabis operators in Colorado, Pennsylvania, North Dakota, and across the United States. If you are a cannabis company looking for capital or other assistance with your operations, send us an email.