Weekly Cannabis Commentary

Cannabis Industry Performance

Source: FRC

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

  • Uber (NYSE:UBER) announced plans to allow Ontario users to buy cannabis on its Uber Eats platform. We believe this is a significant development, as this is the first time Uber has listed a cannabis retailer on its app.
  • Statistics Canada reported that cannabis sales grew 0.19% MoM in September. Although growth was modest, September marked another record month of sales in Canada.

Valuation

As of November 22, 2021, the Canadian big four LPs were trading at a 56% premium (down from 75% in the previous week) over their U.S. peers.

Source: S&P Capital IQ, FRC

 

Source: S&P Capital IQ, FRC

 

Source: Online Provincial Cannabis Stores, FRC

 The average retail price per gram was flat WoW.

Source: Online Provincial Cannabis Stores, FRC

Canadian Retail Cannabis Stores

As of November 22, 2021, there are 2,807 retail cannabis stores in Canada, a WoW increase of 33 stores, including 23 in Ontario, five in Alberta, and five in B.C.

Source: Provincial Websites, FRC

Source: Provincial Websites, FRC

Weekly Cannabis Commentary:

Source:https://www.researchfrc.com/weekly-cannabis-commentary-110