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Pleasantrees is selling two completely legal dispensaries in Massachusetts — and it looks like the company is practically giving them away.

The Michigan-based cannabis company sent out an email last week asking for someone to take over the leases at two Massachusetts operations: one in Amherst and one in Easthampton. Pleasantrees said it is selling the locations because it wants to focus on Michigan, where the company has five locations.

Green Light Special

The email said no down payment is required, and both businesses are fully stocked and operational. Both businesses are in the early stages and “have shown promising signs of sales growth, but require proper marketing and operational efficiencies.”

Pleantrees said the Amherst location does $100,000-$150,000 a month in revenue, but the rent is $34,901 a month. With the overhead for employees, insurance, security, etc., this location doesn’t look like it’s making much of a profit. It opened in August 2021 directly adjacent to the University of Massachusetts (main campus) and close to Amherst College. So it certainly sounds like a sweet spot with potential.

Not so sweet is the Easthampton location, which makes even less income at around $75,000-$100,000 per month. The rent there is $40,580 a month. This dispensary opened in March 2022 and is located directly across the street from the new River Valley Co-op development. It has a co-located processing license and an additional 10,000 square feet of warehouse space suitable for cannabis or non-cannabis use. But it is not difficult to see that the monthly sales are not much more than the rent.

Massachusetts Slows

The Massachusetts market has slowed significantly since it first opened for business. Cantor Fitzgerald analyst Pablo Zuanic, using Headset data, noted that sales growth in the state has consistently slowed on a year-over-year basis (+1% YoY in 3-22 vs. +7% in 2 -22 and +22% on 1-22). Retail prices, according to official state data, also fell to $9.70/gram on average in the third quarter (-29% YoY) versus $11/gram in the second quarter (down 12% consecutively).

The state has continued to add retail licenses, with 456 licensed retail operators now licensed and another 28 pending. In 2021, there were only 194 marijuana retailers generating more than $1.3 billion in sales. Sales reached $3 billion just eight months later. However, it’s clear from the Pleasantrees field that not everyone is enjoying the green rush.

There are many suggestions as to what happened to the Massachusetts market. Many licenses are made for a lot of competition. The meteoric rise of illegal dispensaries in New York City where the illegal market has been lit up has also been blamed. Plus New Jersey started its legal drawing of adult sales, moving away from traffic.

Any of these—and all of these—could have created the perfect superstorm not named Sandy. Now the question is whether a new operator can make green selling greener at these two locations.

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