Expansion continues in the cannabis patch, with organic footprint growth among many of the leaders in the space, even as the pandemic rages on. That expansion takes different forms for different leading names. But the overall picture remains one of high-ROI assumptions.
We look at several of the most active names in the space here, including: Green Thumb Industries Inc (OTCMKTS:GTBIF), Trulieve Cannabis Corp (OTCMKTS:TCNNF), and Liberty Health Sciences Inc (OTCMKTS:LHSIF). Green Thumb Industries Inc (OTCMKTS:GTBIF) just announced it will open Rise Duncansville, its 47th retail location, on June 30. According to the release, profits from the first day of sales will be donated to Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry. Green Thumb also donated the first day of profits to the Last Prisoners Project when Rise Chambersburg opened in Pennsylvania earlier this month. “We are grateful to create jobs throughout the state as we continue expanding our retail footprint in Pennsylvania during the COVID-19 crisis,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “The team is also honored to partner with the Last Prisoner Project on the important work of redressing the past and continuing harms of unjust laws and policies so that victimless cannabis prisoners can walk free.”
Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals. The company markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was actually also named a Best Workplace 2018 by Crain’s Chicago Business. It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Green Thumb Industries Inc (OTCMKTS:GTBIF) pulled in sales of $138M in its last reported quarterly financials, representing top line growth of 271.9%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($101.8M against $182.5M, respectively).
One key name in the group that deserves some attention is CanaFarma Hemp Products Corp. (CSE:CNFA.CN), a full-service company operating in the hemp industry offering a full range of hemp-related products and services to the consumer wellness market. CanaFarma’s flagship brand is “Yooforic” – ie, like “euphoric”, but with unique spelling – a line of hemp-based CBD-infused products for sale, meeting the highest standards for performance and purity, including gums, tinctures, and creams.
Even more importantly, the company’s model is driven by a unique marketing model that appears to be growing in terms of traction. Trailing sales and growth are quite strong, and CBD segment is increasingly attractive. We would also note that the hemp-sourced CBD market is growing at an 18.4% Compound Annual Growth Rate (2018-2022), which means it is now outpacing medical and recreational marijuana. This makes sense given that CBD has a much larger total addressable market than does marijuana given that it is not an intoxicant and has the potential to become a mainstream household industry.
Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the doors of a record 50th location within the State of Florida opened on Friday, June 26th. In other words, one of the fastest expanding distribution forces in the cannabis space is still powering along on a rapid curve.
According to the release, the Ocala location is Trulieve’s 52nd location in the United States, 50 of which are located in the Company’s home state of Florida. Near downtown Ocala, the dispensary supports the Company’s mission to expand and ensure safe, reliable patient access statewide. It also joins Trulieve’s 49 other dispensaries statewide, including in nearby Gainesville, Lady Lake, and Daytona Beach. At approximately 4,400 square feet and with 10 point-of-sale stations, the dispensary will be the Company’s first in Marion County.
Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.
It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges. The company distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida. If you’re long this stock, then you’re liking how the stock has responded to the announcement. TCNNF shares have been moving higher over the past week overall, pushing about 4% to the upside on above average trading volume. Trulieve Cannabis Corp (OTCMKTS:TCNNF) managed to rope in revenues totaling $129.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 118.5%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($143.5M against $104.7M).
Liberty Health Sciences Inc (OTCMKTS:LHSIF) just announced that it has entered into a licensing agreement with licensed California adult use and medicinal cannabis company HONEY, one of California’s largest full service companies, to supply all of Liberty’s dispensaries with the company’s full assortment of branded products. According to the release, in 2012, HONEY revolutionized the cannabis industry by becoming the first producer in the world to market distilled cannabis oil in vape cartridges. Today, they provide authentic, full spectrum oil in vape cartridges, applicators, and caps to legal dispensaries and delivery services.
Liberty Health Sciences Inc (OTCMKTS:LHSIF) frames itself as a company that engages in the production and distribution of medical cannabis primarily in the State of Florida. It has a strategic partnership with Veterans Cannabis Project to support various research projects focused on the treatment of service related trauma with cannabis derived products; and partnership with AdaViv Inc. to enhance production of cannabis.
The company is headquartered in Toronto, Canada. Liberty Health Sciences was established to own and operate medical marijuana licenses in the United States. To date, the company owns one of 14 licenses issued in the state of Florida as well as 50.1% interest in a provisional processing license and a provisional dispensary license, both in Ohio. Liberty has also made an investment in a provisional medical license in the Commonwealth of Massachusetts.
The stock has suffered a bit of late, with shares of LHSIF taking a hit in recent action, down about -11% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -11%. Liberty Health Sciences Inc (OTCMKTS:LHSIF) generated sales of $17.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 10.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($25M against $25.5M, respectively).
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