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Cannabis Stocks Chart Of The Week: Will Debt Maturities Trip Up The Big 10 MSOs?

Nine of the ten largest debt raises ever completed for U.S. Cultivation & Retail companies were closed in 2021 and, to a much lesser extent, YTD 2022. Over $3.8B of debt was sold over this period, far more than in any similar period in U.S. Cannabis history. Investors should be paying close attention to the efforts of MSOs to extend or refinance their upcoming debt maturities.


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CA Cultivation Tax Elimination, Meaningfully Eases Pricing Pressures And Likely Drives Consolidation

July 6, 2022: Last week, California’s onerous cultivation tax ($161/lb.) was officially eliminated. While far from solving all the issues for California operators, the tax change meaningfully reduces the break-even threshold for growers and particularly those with the biggest scale in capacity.