Weekly Cannabis Commentary

Author: Sid Rajeev, Iftekhar Mahmud

Cannabis Industry Performance

Over the past week, the Horizons Marijuana Life Sciences ETF (TSX: HMMJ / “HMMJ”), the Standard & Poor’s/MX International Cannabis Index (“MCAN”), and the Standard & Poor’s/TSX Cannabis Index (“XCAN”) generated a return of 10%, 10%, and 15%, respectively, as most cannabis stocks rallied due to optimism around the U.S. House’s upcoming voting on ending the federal ban on marijuana.

Valuation of Select Canadian LPs

The following chart shows the average Enterprise Value to Revenue (“EV/R”) of the Canadian cannabis companies that we track.

Average EV/R(October 2019 – November 2020)

Average EV/R(October 2019 - November 2020)

Source: S&P Capital IQ, FRC

Source: S&P Capital IQ, FRC

The average EV/R, as of November 30, 2020, is 16.6x – an increase from 13.5x a week ago. The average EV/R, from October 7, 2019 to date, is 11.67x.

Canadian Retail Cannabis Pricing

Canadian Retail Cannabis Pricing. as for November 30 , 2020

Source: Online Provincial Cannabis Stores, FRC

The average retail price per gram decreased by $0.01 week-over-week to $11.02. The below chart shows Canadian retail dried cannabis flower pricing since we began price coverage.

Canadian Retail Dried Cannabis Flower Pricing

Canadian Retail Cannabis Stores

As of November 30, 2020, there are 1,290 retail cannabis stores a week-over-week increase of nine stores across Canada, including three each in Alberta, B.C., and Ontario

Nationwide Store Count

Nationwide Store Count

Source: Provincial Websites, FRC

Source: Provincial Websites, FRC

Weekly Cannabis Commentary: