Florida-based MSO Trulieve has snapped up three more operational dispensaries in the northeast with its latest acquisition of Pennsylvania’s Keystone Shops in a $60 million deal. Solidifying the northeast as the place where the race for would-be market share is fierce.
‘The land grab is underway’
colonies states like New York and New Jersey recently legalizing adult-use cannabis, standalone retailers in the region have become “the belle of the ball,” said Steve Schain, senior counsel at cannabis law firm Hoban Law Group, in the Philadelphia Inquirer. “The land grab is underway.”
Strong medical earnings
Trulieve’s sales doubled in December and the company could overtake competitor Green Thumb if it meets its sales projections to grow by 60%, reports Barron’s. Most of those earnings came from its 70 existing medical cannabis dispensaries in Florida, signaling strong potential in the adult-use market (serving Florida man).
Trulieve already gained a presence in the state last September with its acquisitions of PurePenn and Keystone Relief Centers, which operates as Solevo Wellness. According to the Inquirer, medical sales in the state totalled $910 million in 2020.
Is Penn next for adult-use?
The acquisition could also signal adult-use legalization is on the horizon for Pennsylvania, the fifth most-populous state in the US — but don’t hold your breath. While there’s tons of M&A activity in the state and a recent poll shows 59% of registered voters support legalization, both the Republican-controlled House and Senate have warned it is not a priority at this time. (That kind of sounds like President Biden’s line…)