Trulieve, iAnthus receive provisional licenses in Massachusetts
Trulieve Now One Step Closer to Beginning Massachusetts Operations
Back in December of 2018, Trulieve announced they had acquired Life Essence, a seed-to-sale cannabis company with multiple locations under development in Massachusetts.
Earlier today, the company was awarded provisional licenses for:
1 Dispensary in Northampton
1 Cultivation/Manufacturing Facility in Holyoke (70,001 - 80,000 square feet)
Trulieve now awaits for Massachusetts' Cannabis Control Commission to issue them "final licenses", which would enable them to officially begin operations.
After purchasing a 126,000 square foot building in Holyoke for $3.2 million in June 2019, Trulieve entered into a triple-net lease agreement with Innovative Industrial Properties in July. The purchase price for the property was $3.5 million (excluding transaction costs), and Trulieve will be reimbursed up to $40 million for tenant improvements made to the building. As a result of these aforementioned operations, Trulieve expects to bring 200 to 300 new jobs to the city.
In Trulieve's Q1 earnings call, CEO Kim Rivers shared that the outbreak of COVID-19 had delayed construction in Massachusetts, as Governor Baker had ordered nonessential services to cease their operations in late March. Construction companies have since been permitted to go back to work.
Later on in the call, an analyst referenced the company's 2020 guidance wherein Trulieve predicted Massachusetts revenue would account for 20% of company sales, or roughly $80 million. Referencing the uncertainty of timing due to construction and license authorization delays, Trulieve CEO Kim Rivers declared "..we do think that Massachusetts will be meaningfully contributive to both top and bottom line once we're able to get that up and running. So I think it's just a matter of when and how the timing works out."
Shares of Trulieve (OTC: TCNNF, CSE: TRUL) are trading up approximately 15% year-to-date.
iAnthus Receives Provisional License For Dispensary
iAnthus Capital has also been approved for a provisional retail license. Once the company receives a final license, they can begin to commence cannabis sales from their Lowell dispensary. iAnthus currently operates a medical cannabis dispensary in Boston, and a production facility in Holliston.
Earlier this year, iAnthus' Holliston production facility received approval to grow, manufacture, and sell adult-use product on a wholesale basis.
Lastly, prior to eventually voting unanimously to approve iAnthus' provisional retail license, Commissioner Shaleen Title presented the Commission with information regarding an open complaint. Commission Title went on to detail that this complaint alleged iAnthus (doing business as "Mayflower Medicinals") had unlawfully interfered with unionizing efforts. While specific details of the allegation were not given, the Commission proceeded to agree on a motion that stated the entity must disclose the decision of the complaint to the Commission.
If the entity (Mayflower) is found in violation of any law, rule, or regulation - or if asked to comply with terms of decision - they must demonstrate to the Commission they will comply with any consequences rendered as a result of this decision.
Shares of iAnthus (OTC: ITHUF, CSE: IAN) are trading down approximately 80% year-to-date.
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