This Vital Cannabis Market Might Turn a New Leaf – New Cannabis Ventures

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Florida, the third largest state with a population of 22 million, has a mature medical cannabis program dominated by publicly traded MSOs. The program has improved after initially limiting its patients exclusively to derivatives of medical cannabis by adding flowers and then foods. Florida puts out weekly data, but it’s not dollar-volume related at all. Latest Report from the Office of Medical Marijuana Use A good example of information type – how many patients and how many units for each licensed company by volume type:

Leading Cannabis Companies in Florida

The leading 4 companies, TruLive, Verano Holdings, CuraLeaf and Air Wellness, hold over 59% of the licensed dispensaries. In the week ending 9/15, they produced 74% of finished products in Florida and about 76% of flower sales in the state.

an unusual program

Florida’s program is unusual in that the marketplace is almost completely vertically integrated, meaning that almost all sales to customers are produced by the dispensary owner. There is very little wholesale activity. As a result, the margin in the state is higher as compared to other states. For example, TruLive and Verano have projected 2023 adjusted EBITDA margins of 34.9% and 36.6%, respectively. This is significantly higher than peers, ranging from 16% (Planet 13 Holdings) to 32.1% (Green Thumb Industries). While we do not strongly predict the margin pressure in Florida that we are seeing in other states, it would decrease rapidly if the state was significantly less vertically integrated. This aspect of their program was upheld by the Florida Supreme Court in May 2021.

Florida Cannabis Data

The state releases unit volumes every week, but it does not share historical growth rates. Florida revealed that it now has 751,311 eligible patients, which is 3.4% of the state’s population, a healthy percentage. This week, the growth rate was 22.0%, a record-low compared to a year ago. At the end of 2021, the annual growth rate was 41.9%. Looking at the data from BDSA Analytics, the dollar volume can be better predicted. In July, sales of $193.8 million grew 27.2%. This was slightly higher than the 24-25% annual growth rate in patients during the month.

A year ago, compared with 22.0% of patients as of 9/15, unit volume of MMJ products increased by 23.6%, sales of flowers increased by only 11.7%. With patient growth strong but slow and companies improving their production capabilities, we think the market can become more competitive even without moving to wholesale.

adult-use can come

We don’t project major problems in Florida, and we also note that the state may move toward legal adult-use and we think it will be good for incumbents. State residents can vote on adult use in 2024 if activists are successful in collecting 900K valid signatures from registered voters.


As one of nine U.S. publicly traded cannabis companies that generate more than $100 million in quarterly revenue, Air Wellness is poised to benefit from new growth from states that turn to adult-use, such as New Jersey and Massachusetts. The company’s stock is significantly lower in YTD and its Q2 results from August came in line with expectations. Founder and CEO Jonathan Sandelman said, “With our core operating footprint, the vast majority of our capital expenditures behind us, and a strong $117 million in cash position on our balance sheet, we believe we can survive this economic season. are well prepared for the environment and emerge stronger on the other side.”

get up to speed on Air Wellness Investor Dashboard Which we maintain on their behalf as a client of New Cannabis Ventures. Click the blue Follow Company button to stay up to date with their progress.


New Cannabis Ventures publishes curated articles as well as exclusive news. Here’s some of the most interesting business content from this week:

Unique

Greenlight, a private multi-state operator, has 23 operational dispensaries and another 15 under construction. The company, which has grown its footprint in a big way by winning licenses, focuses on Midwestern states that are competitive. is usually overlooked, However, the company sees opportunity there as those states prepare to transition to adult use. In an exclusive interview, CEO John Mueller, a serial entrepreneur, talks about the company’s market presence, upcoming ballot initiatives and plans to grow the company.

sales data

michigan cannabis sales sequentially slipped in August. Medicare sales fell 53.9% from a year ago to $18.5 million, down 12.4% sequentially. Adult-use sales rose 50.9% year-over-year to a record $189.4 million, and were up 0.3% sequentially. Sales so far this year are up 26.1% to $1.45 billion.

revenue

Fire & Flower Q2 revenue fell 6% to C$40.7 million from C$43.3 million in the prior-year period. The company reported higher revenue with fewer retail stores but also a Big drop in digital revenue, which weighed on the company’s Q2 results. Newly installed CEO Stephen Trudell has been on the job for just one month out of the reported quarter and has said that the company is “focused on the transformation of our business and strategic opportunities with the goal of delivering positive adjusted EBITDA and free cash flow.” “

High Tide reported Q3 revenue nearly doubling to $95.4 million compared to $48.1 million in the same quarter last year. Sequentially, revenue increased 18%. The company noted that its results came despite a YesThe slowdown in e-commerce sales is being lifted as restrictions related to the pandemic are being lifted. “I’ve Always Tried” under promise and over deliver, This is a value that I consistently place on my team. We set goals and if we don’t meet them we are held accountable as a team. I am pleased to report that based on our latest financial results, we continue to outperform our market targets,” said Raj Grover, President and CEO.


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Based in Houston, Allen leverages his experience as the founder of the online community 420 investors, the first and still the largest Due Diligence platform focused on publicly traded stocks in the cannabis industry. With his extensive network in the cannabis community, Allen is finding new ways to connect the industry and facilitate its sustainable growth. Feather New Cannabis Ventures, he is responsible for content development and strategic alliances. Allen, who began his career on Wall Street in 1986, worked as an independent research analyst after more than two decades in research and portfolio management, before turning his attention to the cannabis industry in early 2013. A prolific author, has published over 650 articles since 2007 looking for alphaWhere he has 70,000 followers, Allen is a frequent speaker at industry conferences and a persistent source For media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Allen: Twitter , Facebook , linkedin , E-mail

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