STIRRING THE POT IN CALIFORNIA: CANNABIS SALES OVERSTATED BY $6 BILLION (2018-2022)

Jul 27, 2023

Beginning in Q1:23, California cannabis excise tax reporting shifted from distributor to retailer. With this change, the state provides an added layer of transparency in reporting cannabis sales.  Our analysis reveals that prior period revenues (2018-2022) are significantly lower by ~$6 Billion (or ~40%), than many industry observers and analysts (including us) have previously reported.  Accordingly, investors should carefully consider this reset when evaluating potential cannabis opportunities based in California.

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