Weekly Cannabis Commentary

Cannabis Industry Performance

Source: FRC

 Last week, Canadian cannabis stocks outperformed U.S. cannabis stocks. We believe the recent report published by Hifyre, indicating cannabis retail sales growth of 36% YoY in August, and closing of HEXO’s (TSX: HEXO) $925M acquisition of Redecan, supported Canadian stocks last week. 

Valuation

As of September 7, 2021, the Canadian big four LPs were trading at a 78% premium (up from 72% in the previous week) over their U.S. peers. Note that valuations of cannabis companies (in both countries) have been on a declining trend since February 2021. Over the six months, U.S. stocks have declined less than their Canadian peers.

Source: S&P Capital IQ, FRC

Average EV/R

Source: S&P Capital IQ, FRC

Canadian Retail Cannabis Pricing

Source: Online Provincial Cannabis Stores, FRC

The average retail price per gram fell week-over-week from $11.14 to $11.13. The chart below shows the Canadian retail dried cannabis flower pricing trend:

Canadian Retail Dried Cannabis Flower Pricing

Source: Online Provincial Cannabis Stores, FRC

Canadian Retail Cannabis Stores

As of September 7, 2021, there are 2,513 retail cannabis stores, a week-over-week increase of 34 stores across Canada, including 24 in Ontario, four in Alberta, four in B.C., and two in Saskatchewan.

Nationwide Store Count

Weekly Psychedelic Commentary

Psychedelic Industry Performance

Source: TMX Money, FRC

Last week, the U.S. Drug Enforcement Agency (DEA) announced their intentions to increase psilocybin production significantly for research and clinical trial purposes. We believe this is a promising development for the sector as it shows that the DEA is seriously considering psychedelics as an emerging therapeutic field.

Weekly Cannabis Commentary:

Source:https://www.researchfrc.com/weekly-cannabis-commentary-100