Weekly Cannabis Commentary
Cannabis Industry Performance
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.
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.
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 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.
Weekly Psychedelic Commentary
Psychedelic Industry Performance
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.