- Oregon recreational marijuana companies are experiencing the best market conditions in years
- Chalice’s acquisition of Homegrown dispensaries expands company’s retail stores in Oregon from 7 to 12
- CEO says company has ability to significantly increase vertical margin revenue
Business is booming for cannabis companies in Oregon, with a recent Oregon Liquor Control Commission (“OLCC”) study reporting that cannabis production has increased 78% since 2019, while the amount of cannabis sold has skyrocketed by 150% (https://cnw.fm/diFeI). That is welcome news to Chalice Brands (CSE: CHAL) (OTCQB: CHALF), as the company recently announced an acquisition that brought a chain of five Oregon-based retail dispensaries under the Chalice umbrella (https://cnw.fm/KYYkz).
“Oregon recreational marijuana companies are experiencing the best market conditions in years, with demand far outpacing supply because of the COVID-19 pandemic and more consumers forgoing the illicit market in favor of legal retailers,” reported a recent MJBizDaily article (https://cnw.fm/j7A1m). The report also noted another key point from the OLCC report: The amount of cannabis harvested in 2020 increased by 37% versus 2019, and the OLCC could issue up to 100 more producer licenses by April.
Oregon is the third-largest cannabis market in per capita consumption in the country, reporting $275 annual cannabis spend per capita (https://cnw.fm/vHX5K). The state boasts 16.5 dispensaries per 100,000 residents, offers a stable cultivation and supply chain, and has an optimal climate for growing best-in-class cannabis. Chalice’s acquisition of the Homegrown dispensaries, previously owned by SMS Ventures LLC and located in Portland, Salem and Albany, expands the company’s retail stores from 7 to 12 locations in the state of Oregon.
“We have been diligently searching for the appropriate footprint expansion for our retail business in Oregon that represented the right fit and to be in a position to fund the acquisition,” said Chalice Brands president and CEO Jeff Yapp. “Homegrown’s culture aligns perfectly within ours and provides an exceptional geographic compatibility with Chalice and offers an expansion into parts of Oregon in which Chalice does not operate currently.
“We have the ability to significantly increase vertical margin revenue through the distribution of our existing edibles and extraction manufacturing as well as our own grow,” Yapp continued. “Homegrown is a well-run retail operation with a very dedicated team at all five stores that we will continue to rely on as we go forward.”
Chalice Brands is a premier consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, with seven dispensaries in Portland, Oregon. The Company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Chalice operates nationally through Fifth and Root and has operations in Oregon and California.
For more information, visit the company’s website at www.ChaliceBrandsLtd.com.
NOTE TO INVESTORS: The latest news and updates relating to CHALF are available in the company’s newsroom at https://cnw.fm/CHAL
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