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One of the biggest surprises of the 2020 US general election is related to the number of conservative states that passed legislation to legalize medical and/or recreational cannabis.
The Green Rush in the US is starting to accelerate as states like Arizona and New York pass measures to legalize recreational cannabis. Texas is a state that we have been highly focused on and is a cannabis market to be aware of. Over the long-term, we expect conservative states to follow Texas as it relates to the cannabis industry and are bullish on this trend.
Texas is one of the largest contributors to the United States’ gross domestic product (GDP) and we expect other states to follow its lead. Over the next year, we expect the US cannabis industry to reach an inflection point and find the increase in activity in Texas to be an important indicator as it relates to the current trend.
Parallel is Capitalizing on Texas’ Cannabis Market
Earlier this week, Parallel, one of the largest privately-held US multi-state cannabis operators (MSOs), announced a $25 million investment in a 63,000 square-foot state-of-the art cannabis cultivation, production and retail facility in Texas. This investment represents an important development for Texas and we believe that legalization in the Lone Star State is not too far away.
Parallel is backed by a management team that has a proven track record of execution in the US cannabis industry and we are favorable on how it is positioning itself to be an early mover on the Texas cannabis market. The investment improves the company’s satisfaction with the increasing demand for medical cannabis products in Texas and will monitor how the management team is able to capitalize on this opportunity.
As part of the development, Parallel also reported to be bringing its goodblend™ retail brand to Texas. This will be the second state to be introduced to the company’s brand (first was Pennsylvania) and we will monitor how it gains traction when launched. Going forward, Parallel plans to evaluate opportunities to roll-out the brand in markets that it is levered to and we are favorable on the growth prospects that are associated with the rollout strategy.
William “Beau” Wrigley Jr., is the Chairman and CEO of Parallel and we are favorable to the resources that he brings to the operation. Beau’s family has a proven track record of creating leading brands and we are favorable to the experience and network that is supporting the cannabis business.
In 2015, Texas created the Texas Compassionate Use Program to provide medical cannabis to qualifying patients. Parallel’s goodblend retail brand provides patients access to premium cannabis products that are cultivated and produced in Texas to ensure the most consistent patient experience. Parallel was the first cannabis operator in Texas to offer patients medical cannabis in gummy and lozenge formats and we are favorable to the success that it has already had in the Lone Star State.
A Pre-IPO Company to be Aware of
Parallel recently announced plans to become a public company through a definitive business combination agreement with Ceres Acquisition Corp. (NEO: CERE.U) (OTCQX: CERAF), a special purpose acquisition corporation (SPAC). Currently, Parallel has ongoing operations in four medical and recreational markets in Florida, Texas, Massachusetts, and Nevada. Parallel also has a license under its goodblend Pennsylvania brand for vertically integrated operations and up to six retail locations.
Subject to regulatory approval, Parallel will enter the Illinois cannabis market via the acquisition of six Windy City Cannabis licenses. The company owns a diverse portfolio of premium proprietary and licensed consumer brands and products and operates approx. 50 locations across the country.
Through its wholly-owned Parallel Biosciences subsidiary, the company conducts advanced cannabis science in its facilities in Massachusetts, Florida, Texas and a facility in Budapest, Hungary through an exclusive license and partnership. We are favorable on the geographic diversity of the markets and the parts of the cannabis value chain that Parallel is focused on.
If you are interested in learning more about Parallel and the Texas Cannabis Market, please send an email to support@technical420.com with the subject “Parallel” to be added to our distribution list.
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