Weekly Cannabis Commentary

Cannabis Industry Performance

Cannabis Industry Performance

Source: FRC 

Last week, U.S. cannabis stocks outperformed their Canadian peers, amid several positive developments.

  • Mississippi lawmakers have reached an agreement to propose a bill to legalize medical marijuana.
  • The U.S. House of Representatives endorsed cannabis banking reform (SAFE Act) that would let cannabis businesses gain more access to traditional banking services.
  • Amazon (NASDAQ: AMZN) announced its continued support for the federal marijuana reform act, by reinstating employment eligibility for former employees or applicants who were terminated or not considered because of cannabis screenings.
  • Chicago lawmakers voted to lift the cap of seven retail stores per zone.

Valuation

As of September 27, 2021, the Canadian big four LPs were trading at a 48% premium (down from 69% in the previous week) over their U.S. peers. We note that the premium was 94% two months ago.

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: S&P Capital IQ, FRC

The average retail price per gram fell week-over-week from $11.11 to $11.10. 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 27, 2021, there are 2,578 retail cannabis stores, a week-over-week increase of 21 stores across Canada, including 18 in Ontario alone.

Nationwide Store Count

Source: Provincial Websites, FRC

Source: Provincial Websites, FRC 

Weekly Psychedelic Commentary

Psychedelic Industry Performance

Psychedelic Industry Performance of September 27, 2021

Source: TMX Money, FRC

Weekly Cannabis Commentary:

Source:https://www.researchfrc.com/weekly-cannabis-commentary-103