Over the past ten years, the legal cannabis market in North America has advanced significantly. Another 20 states have joined the movement since Colorado made history by legalizing recreational marijuana in 2012, and several more may soon do the same.
On November 21, New York took a monumental step in establishing a legal and lucrative marketplace for recreational marijuana by issuing its first 36 dispensary licenses. The majority of the businesses are owned by people who have been disproportionately impacted by the drug war, while others are run by nonprofit organizations. The licenses approved by the state's Cannabis Control Board were the first of 175 that the state intends to issue, with many of the first round reserved for applicants with prior cannabis-related convictions.
Even though the licensing program was being challenged in court, the state Cannabis Control Board voted to give licenses to 28 entrepreneurs and eight nonprofits. This will complete a supply chain from seed to sale, which should allow legal sales to start in the state.
The goal of the licensing process was to help the state reach its goal of giving people from underserved areas priority for jobs in the legal cannabis industry. Even though people of all races used marijuana at about the same rate, marijuana prohibition in New York and the rest of the country mostly brought Black and Latino people into the criminal justice system.
In March of 2018, New York made it legal for adults to use cannabis for fun. This meant that each person could have up to three ounces of weed or 24 grams of concentrate. Officials say that sales will start in stores before the end of 2022.
In the first round, businesses and organizations competed for 175 licenses, which let operators open up to three dispensaries. Most of them, about 150, are expected to go to businesses that the state will help open by renting them turnkey spaces and giving them loans to cover the cost of getting their storefronts ready. The last 25 licenses are set aside for organizations that help people in need.
The number of cannabis products available on the market is growing as more states legalize marijuana for recreational purposes. The three-pillar business plan of Flora Growth Corp. (NASDAQ:FLGC), a next-generation cannabis firm with a focus on commercial wholesale, consumer brands, and life sciences, makes it unique in the market. For the diverse applications of cannabis and other plant-based products, Flora Growth creates a wide variety of brands and services. The business has operations in multiple countries and diversified revenue streams.
Flora Growth Reports Another Record Quarter
Flora Growth has continued to achieve positive revenue growth in 2022. On November 28, the company reported Q3 2022 revenue of US$10.8 million, a 414% increase from the previous year and $25.7 million in revenue for the first nine months of 2022, which represents an increase of 510% year-over-year (YoY). The revenue increase is primarily attributed to acquired brands, JustCBD and Vessel.
Flora Growth also increased its gross profit by approximately 703% YoY to approximately $5.0 million.
“The third quarter of 2022 was another exciting quarter for Flora as we continued to lay the foundation of our business for the long-term,” said Flora Growth Chairman and CEO Luis Merchan. “During the quarter, we exported products to several new markets, including distribution of our Colombian grown dried flower to Switzerland and the Czech Republic, as well as CBD isolate to the United States. Our global distribution network, coupled with our high-quality Colombian flower and derivatives, leave Flora well positioned to capitalize on the evolving global cannabis landscape.”
Additionally, Flora Growth reaffirmed that it is on track to generate $35 to 45 million in revenue in 2022.
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