Weekly Cannabis Commentary
Cannabis Industry Performance
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.
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.
The following chart shows the average EV/R of the companies we track in both countries:
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 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.
Weekly Psychedelic Commentary
Psychedelic Industry Performance