Weekly Cannabis Commentary

Author: Sid Rajeev, Iftekhar Mahmud

Cannabis Industry Performance

Source: FRC

Over the past week, there were no significant developments in the Canadian cannabis sector. In the U.S., Green Thumb (OTCQX: GTBIF) launched its cannabis-infused beverage brand ‘Cann’ in Illinois. GTBIF was the only company on our list with positive returns last week.

Valuation

As of April 16, 2021, the Canadian big four LPs are trading at a 97% premium (down WoW from 109%) over their U.S. peers.

the Canadian big four LPs

Source: S&P Capital IQ, FRC 

The following chart shows the average EV/R of the companies we track in both sectors:

Average EV/R (October 2019 – April 2021)

Source: S&P Capital IQ, FRC

Canadian Retail Cannabis Pricing

Source: Online Provincial Cannabis Stores, FRC

The average retail price per gram decreased week-over-week, from $11.32 to $11.29. The chart below shows Canadian retail dried cannabis flower pricing since we initiated price coverage.

Canadian Retail Dried Cannabis Flower Pricing

Source: Online Provincial Cannabis Stores, FRC

Canadian Retail Cannabis Stores

As of April 19, 2021, there are 1,856 retail cannabis stores, a week-over-week increase of 26 stores across Canada. Most of the openings were in Ontario.

Nationwide Store Count

Source: Provincial Websites, FRC

Source: Provincial Websites, FRC

Weekly Psychedelic Commentary

Psychedelic Industry Performance

Source: TMX Money, FRC

Over the past week, PSYK was down 6%. There was no significant news in the industry last week.

Weekly Cannabis Commentary:

Source: https://www.researchfrc.com/weekly-cannabis-commentary-80