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CA Cannabis License Update

Cannabis Real Estate Loans, Cannabis Real Estate Lenders

  • As expected, the launch of California’s adult-use marijuana program has brought significantly increased demand in marijuana products among consumers, and to meet that demand, regulators are working to approve temporary licenses across the supply chain.

  • The State has been converting black market/grey market operators at an increasing rate. Of all cultivation licenses issued thus far, 55% are in 3 counties, 20% in Humboldt (majority outdoor ), 14% Mendocino (majority outdoor) and 22% Santa Barbara ( majority outdoor/mixed-light).

  • Nearly one in every two retail/dispensary/delivery licenses (49%) are located in just three counties: Los Angeles (28%), Alameda (11%), and San Francisco (10%).

  • Nearly one in every two manufacturing licenses (48%) are located in three counties: Alameda (19%), Los Angeles (15%), and Riverside (10%).

  • The State estimates it will need to issue approximately 55,000-65,000 licenses ( across all types, but cultivation being the lion-share) to reach 70%+ regulated cannabis sales/all sales in the state, it is currently 30%- 99.9% via medical sales. What we are seeing is that "medical patients" are becoming recreational patients, so there will have to be a retrace and conversion of the current $3 B medical sales market to recreational first. We are predicting a major contraction of medical sales by year-end, but recreational sales will absorb the conversion ending net positive regulate sales if license issuance can maintain steam.

  • Cultivation licenses: 782% growth rate (from 349 to 3,077 licenses)

  • Distributor licenses: 248% growth rate (from 176 to 613 licenses)

  • Delivery licenses: 219% growth rate (from 52 to 166 licenses)

  • Manufacturing licenses: 126% growth rate (from 302 to 682 licenses)

  • Retail licenses: 126% growth rate (from 137 to 309 licenses)

  • Microbusiness licenses: 126% growth rate (from 57 to 129 licenses)

  • Dispensary licenses: 99% growth rate (from 184 to 366 licenses)

  • Testing licenses: 80% growth rate (from 15 to 27 licenses)

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