You’re seeing an increase in revenue on your wholesale operation in Massachusetts. What does the cultivation market look like in the state?
The wholesale market looks really strong. The market remains constrained, especially from an adult-use perspective. We’ve had a lot of success in the past couple of months selling to the adult-use dispensaries throughout the state. The market will remain constrained throughout the end of the year. So we expect to see our wholesale numbers continue to ramp – probably not as dramatically as they have over the last couple of months – and stabilize throughout the end of the year.
What’s a pound of wholesale flower going for in Massachusetts?
Right now up to $4,000. We’re averaging $3,800 a pound, even with biomass testing a little bit lower it’s still getting great prices. At least $3,200.
Have you changed your forecast for 2020 in Massachusetts? If so, based on what?
2020 still looks in line with how we were thinking about the world a few months ago.
The real change is that in 2019 we were anticipating adult-use licenses this year. It looks like that timeline will be pushed out to best-case December, but mostly likely early January.
We’re not anticipating a change in 2020, but 2019 is going to look a little different in terms of the timing of adult-use. But we are doing more favorable on wholesale than we anticipated, so that partially offsets what we were expecting on adult-use.