The Bengal Bite 🐯 | The Momentum of Cannabis | August 14, 2020
Cannabis companies continue to exceed expectations as numerous operators reported a significant increase in sales for the month of July, and this week several of the publicly-listed Multi-State Operators (MSOs) announced impressive Q2 results that exceeded estimates of even the most optimistic equity analysts.
These results point to a promising second half of the year and suggest the “momentum of cannabis” is continuing to build in 2020.
The Bengal Capital Team
Legal cannabis provides a bright spot in a bleak economy
Since the arrival of the pandemic, cannabis sales are up as consumers turn to marijuana for stress relief and recreation. Furthermore, cannabis companies are doubling down on safety by implementing strategies to reduce contact between retailers and customers, including curbside pickup and at-home delivery. Read more about the role cannabis is playing in the economy in Forbes here.
American cannabis operator stocks soar 27% in July
The American Cannabis Operator Index tracks the stocks of some of the largest operators in the American cannabis space. After posting an all-time closing low on March 18th (14.50), the index has recovered and is up more than 150% through mid August (37.97 as of August 12th). Read more about how cannabis companies performed in July in New Cannabis Ventures here.
Illinois' breakout star in a hazy economic landscape - recreational marijuana
Cannabis tax revenues continue to grow. In the first half of 2020, Illinois collected $52 million in tax revenue, which was significantly more than the state’s H1 estimate of $28 million. The tax revenue is a boon for Illinois, which, like other states around the country, has had to reassess its finances because of the pandemic. Read more on Illinois' blow-out quarter in CNN here.
Cannabis lawyer Bob Hoban: Fortune 500 companies fear missing out on weed boom
Bob Hoban, founder of one of the country’s top cannabis law firms - the Hoban Law Group, shares his perspective on the state of the industry. “It’s exciting. It reminds me of that scene from Back to the Future, because [we at Hoban Law Group] come from the future. There’s enormous opportunity.” Read the full interview with Bob Hoban in Green Entrepreneur here.