by The Real Dirt | Oct 11, 2021 | Blog, Business, Cannabis Business, Cannabis News, Industry News, Legalization
One of the country’s largest marijuana companies has officially purchased one of the country’s largest outdoor marijuana growing operations.
Curaleaf, a publicly shared marijuana corporation with business holdings throughout America and Europe, just announced that it has finalized the acquisition of Los Sueños Farms, Colorado’s largest outdoor marijuana growing operation. The purchase, worth a reported $67 million in cash, stock and assumed debt, was first announced in May, but didn’t close until this month, according to Curaleaf.
Two Pueblo dispensary licenses previously held by Los Sueños were included in the deal.
Under the agreement, 61 percent of the sale price will be paid in Curaleaf shares, 29 percent in cash and 10 percent in acquired debt. According to Curaleaf, Los Sueños founder Bob DeGabrielle will continue to oversee the farm and “take responsibility” for the company’s wholesale and retail operations.
Located in Pueblo County, Los Sueños’ outdoor marijuana cultivation comprises 66 acres of land with an additional 1,800 plants grown in an on-site greenhouse facility. Los Sueños originally agreed to an acquisition offer from Shwazze, then named Medicine Man Technologies, in 2019. However, Schwazze terminated the deal in 2020 for undisclosed reasons.
Los Sueõs joins over 130 dispensaries and growing operations across 23 states currently owned by Curaleaf, as well as a handful of infused-product brands, including Blue Kudu, a Colorado edibles maker purchased in 2020 for an undisclosed amount. Curaleaf also launched Select Cannabis, a line of vaporizer products and edibles, in Colorado earlier this year — after acquiring the original Select brand in Oregon.
by The Real Dirt | Sep 30, 2021 | Blog, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Industry News, Legalization, Politics
The news this week that a small Massachusetts town is charging more than $1.3 million in “impact fees” to the three cannabis companies operating within its city limits has reopened the debate over the true impact of cannabis businesses on local communities.
In a recently filed lawsuit
, the cannabis retailer Stem
revealed that the city of Haverhill, Massachusetts, is charging its three cannabis businesses a total of $1.3 million in annual impact fees—and $866,930 of that total is earmarked for the town’s police department.
Those impact fees are being charged despite the fact that myths about cannabis businesses boosting crime have been debunked time and time again. In fact, there’s evidence that cannabis legalization can actually improve local crime clearance rates.
Even as they operate as positive law-abiding forces in their communities, cannabis companies still have to combat the negative stereotypes perpetuated by America’s War on Drugs.
Without any evidence of negative community impact, we’re left to wonder why some towns and cities are allowed to charge cannabis businesses for additional policing.
Cannabiz impact in Massachusetts
Massachusetts’ legalization law allows local communities to charge impact fees that are “reasonably related to the costs imposed upon the municipality by the operation of the marijuana establishment.”
Unlike most other legal states, Massachusetts law forces cannabis companies to sign Host Community Agreements (HCAs) with the town in which they operate. This gives local communities enormous leverage over cannabis companies—which encourages them to tax the daylights out of the local weed stores.
Many Bay State towns use HCAs to create their own mitigation fees based on how they imagine cannabis businesses will impact their townships.
The law was put in place in 2018, when there was little data about the impact of cannabis companies on rates of local substance abuse, intoxicated driving, and crime.
by The Real Dirt | Sep 3, 2021 | 420 Culture & Travel, 420 News, Blog, Business, Cannabis Business, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization
BOSTON — The Massachusetts Cannabis Control Commission this week released numbers revealing sales of recreational marijuana has topped $2 billion dollars in the first three years of legalization.
The first Massachusetts recreational cannabis dispensaries opened for business in November 2018.
Despite the COVID-19 pandemic, which has negatively impacted other businesses, cannabis sales remains strong.
At Seed Recreational Dispensary in Jamaica Plain, which opened in March 2021, Assistant General Manager Bobby Driscoll is not surprised.
“I’m not surprised. It is definitely moving a little quicker than I think some of us in the industry had anticipated,” Driscoll said. “I think it was something we were waiting for, for a long time. A lot of people sacrificed a lot to get us to this point.”
Driscoll anticipates demand will remain strong, even as new dispensaries are approved and open for business.