Our States

Nevada

Nevada allows anyone 21 years and older, or 18 years and older with a valid medical marijuana card including those issued from another state, to purchase cannabis legally. With a population of 3.1 million people and a vibrant tourist industry (according to the LVCVA Research Center, the state saw over 42 million visitors in 2019), Nevada continues to see year over year cannabis sales growth. Even though tourism dropped 55% in 2020 due to the pandemic, cannabis sales continued to grow as the Nevada Department of Taxation estimated 2020 sales were 10.5% higher than 2019, and Q4 2020 saw a 26% increase compared to the same period in 2019. BDS Analytics projects the NV market will grow to $1.0 billion in annual sales in 2021 and $1.2 billion in 2022 compared to $786 million in 2020.

On March 12, 2021 Vencanna announced its intention to merge with The Cannavative Group LLC (“Cannavative”). In addition to a 10,000 SF pharma-grade manufacturing facility, Cannavative has over 14,000 SF of canopy with significant ability to expand on the current site. Their products are renowned in Nevada; a multiple cup winner with sales in over 80% of the state’s dispensaries and retail outlets. It is anticipated that the transaction will close in the summer of 2021.  

Ohio

Ohio, a limited license state, currently has 33 provisional cultivation licenses (19 Level I and 14 Level II), 48 provisional processor licenses, and 57 provisional dispensary licenses. According to the Ohio Board of Pharmacy, there is currently 170,000 registered patients and state sales in 2020 exceeded $220.0 million, significantly outpacing 2019’s sales of $56 million. Annualizing the most recent monthly sales would equate to over $300.0 million.  The Ohio Department of Commerce may increase the allowable cultivation area by up to 3x if demand warrants.  With close to 12 million people, Ohio is the seventh most populous state in the United States.

Vencanna currently holds $5.4 million in investments in Galenas LLC (“Galenas”) through two convertible debentures. Galenas is a Level II cultivator located in Akron, Ohio. They are the only organic certified licensed cultivator in the state. Galenas’ 10,000 square foot facility won Architect Newspaper’s 2019 Best Green Building Award, describing the facility as a “pharmaceutical-grade environment that meets highly technical specifications.” Their patient focused, high quality craft product commands top tier pricing and is sold in all 52 dispensaries in the state. Vencanna may convert its investments into approximately 45% interest in Galenas. The debentures mature July 1 and Aug 1, 2021.  

New Jersey

With only 12 vertical licenses currently approved, New Jersey is one of the most limited licensed states in the United States (each license allows for up to 3 retail locations). In August 2019, the state held their third licensing round consisting of 4 vertical licenses (allows 1 dispensary), 5 cultivation licenses, and 15 dispensary licenses. These applications were under a court stay due to legal challenges. On Feb. 18, 2021 the New Jersey appellate court ruled in favor of the state and lifted the stay on issuing the licenses associated with the August 2019 applications. While timing of when the licenses will be awarded is unknown, the application process is no longer being held up. This is all the more important given that on February 22, 2021, New Jersey legalized adult use cannabis. New Jersey is the 11th largest state with a population of 8.9 million people.  

Vencanna holds a 60% interest in a cultivation application and a 54% interest in a dispensary application.