Weekly Cannabis Commentary

 

Cannabis Industry Performance

Source: FRC

Last week, U.S. cannabis stocks outperformed their Canadian peers (-4% vs -12%).

Key sector developments below (positive):

➢In Illinois, sales of recreational cannabis increased 0.6% MoM to US$132M in March.

Illinois Monthly Recreational Cannabis Sales

Source: New Cannabis Ventures

➢ The Delaware House of Representatives passed a cannabis legalization bill last week. The bill now moves on to the Senate for further deliberations.

➢ In a larger reform bill tabled for deliberations this week, Senator Patty Murray is pushing for including the SAFE Banking Act.

Valuation

The top Canadian LPs are trading at a 16% premium (previously 19%) over their U.S. peers.

Source: S&P Capital IQ / FRC

 

Average EV/R

Source: S&P Capital IQ / FRC

Canadian Retail Cannabis Stores

Currently, there are 3,262 retail cannabis stores in Canada, an increase of seven stores WoW, including seven in Ontario, one in B.C., and one closure in Alberta.

Nationwide Store Count

Source: Provincial Websites, FRC

 

Source: Provincial Websites, FRC