Ohio medical cannabis businesses are now on the market to highest bidders
Published November 10, 2020
Ohio medical cannabis businesses have begun changing hands, particularly now that a year-long waiting period for the sale of dispensaries has expired.
According to the Cleveland Business Journal, at least eight licensed businesses have been purchased and another three sales are awaiting approval by state regulators.
Under state law, dispensaries had to wait at least a year after starting operations before selling to another owner. Cultivators and other MMJ business types are under no such restriction.
Ohio medical marijuana sales began in January 2019, and the state approved the first sale of a dispensary on Sept. 1 this year.
Business purchases announced so far in Ohio include:
- Clubhouse dispensary in Elyria was sold to Body and Mind, a publicly traded Canadian company, for $3.1 million.
- Pure Ohio Wellness in Springfield was sold to Standard Wellness, another Ohio company.
- Verdant Creations sold four of its five dispensaries – in Cincinnati, Chillicothe, Marion and Newark – to Illinois-based Cresco Labs.
- Akron-based Klutch Cannabis purchased a grow operation in the same town from Massachusetts-based Calyx Peak Cos.
- Ohio Grown Therapies announced a deal in May 2019 to sell a business in Johnstown to Massachusetts-based Curaleaf, but it’s unclear if the deal ever closed.
Ohio medical marijuana businesses have begun changing hands, especially after a year-long wait period for the sale of dispensaries expired.
Ohio Becomes the Latest State to Report Record Monthly Marijuana Sales
No prizes for guessing why the state’s residents were stocking up on weed.
Joining a growing list of states and even countries that have notched new all-time highs for marijuana sales, Ohio hit a new record in March. During the month, almost $13 million worth of product was sold there, according to state data analyzed by Crain’s Cleveland Business. It was not apparent how much growth this represented from either the previous month, or from March 2019.
As with other geographies posting peak monthly sales in March, Ohio’s new peak is due largely to stay-in-place measures imposed to mitigate the spread of the SARS-CoV-2 coronavirus. The state’s sales particularly jumped in mid-month, just before those widely anticipated measures were announced. In fact, the week of March 16 took the crown for highest weekly revenue in the state’s history, at $3.8 million.
This pattern implies that users were stocking up in case they were later unable to obtain product. Ohio’s dispensaries, however, are still allowed to operate since the state has deemed them to be essential businesses that should remain open.
Image source: Getty Images.
Currently, Ohio permits only the consumption and sale of medical marijuana. This is why its sales figures are routinely topped by other states, such as Oregon, that have legalized both medical and recreational cannabis.
Despite the relatively small size of its market, several publicly traded marijuana companies are active in Ohio. One is Green Thumb Industries (OTC:GTBIF) , which is based in the nearby state of Illinois. Green Thumb is well represented in Ohio, with five of its Rise dispensaries scattered within the state.
Green Thumb stock traded flat on Thursday, lagging behind the gains of the broader equities market.
No prizes for guessing why the state's residents were stocking up on weed.