Weekly Cannabis Commentary

Cannabis Industry Performance

Cannabis Industry Performance

Source: FRC

Last week, both Canadian and U.S. cannabis stocks fell despite some positive news for the sector:

  • California approved Bill 45, which would allow CBD to be added to food, beverages, and cosmetic products.
  • In Maine, recreational cannabis sales hit a record high in August, totalling $10.2M. The state began recreational sales only one year ago, and sales have increased each month since then.

Valuation

As of September 13, 2021, the Canadian big four LPs were trading at an 83% premium (up from 78% in the previous week) over their U.S. peers.

The Canadian big four LPs

Source: S&P Capital IQ, FRC

The following chart shows the average EV/R of the companies we track in both countries:

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 $11.13 to $11.12. 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 13, 2021, there are 2,524 retail cannabis stores, a week-over-week increase of 11 stores across Canada, including 10 in Ontario, and one in Manitoba.

Nationwide Store Count  (YoY)

Nationwide Store Count  (YoY)

Source: Provincial Websites, FRC

Weekly Psychedelic Commentary

Source: Provincial Websites, FRC

Psychedelic Industry Performance

Psychedelic Industry Performance

Source: TMX Money, FRC

Weekly Cannabis Commentary:

Source:https://www.researchfrc.com/weekly-cannabis-commentary-101