Weekly Cannabis Commentary
Cannabis Industry Performance
Last week, both Canadian and U.S. cannabis stocks fell as a result of the overall weakness in equity markets. Key developments in the sector include:
- In September, Illinois’ recreational cannabis sales increased 80% YoY to US$122M.
- Oregon’s regulators recommended that new cultivation licenses be halted as the state is experiencing large declines in cannabis prices due to overproduction. We note that oversupply has impacted both Canadian and U.S. cannabis companies over the past 12 months.
As of October 4, 2021, the Canadian big four LPs were trading at a 40% premium (down from 48% in the previous week) over their U.S. peers.
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 $11.10 to $11.08. The chart below shows the Canadian retail dried cannabis flower pricing trend:
Canadian Retail Cannabis Stores
As of October 4, 2021, there are 2,599 retail cannabis stores, a week-over-week increase of 21 stores across Canada, including 24 in Ontario, and one in Alberta. Four stores closed in B.C.
Weekly Psychedelic Commentary
Psychedelic Industry Performance