Weekly Cannabis Commentary

Author: Sid Rajeev

Cannabis Industry Performance

Cannabis Industry Performance

Source: FRC

Last week, both Canadian and U.S. cannabis stocks retreated despite some positive sector-related developments.

  • Cronos Group (TSX: CRON) announced that they purchased an option to acquire a 10.5% stake in U.S. cannabis company PharmaCann (“PharmaCann”) for $110M. PharmaCann operates six production facilities, and 23 dispensaries across six states in the U.S.
  • Quebec’s government-run cannabis store operator, the Société Quebecoise du Cannabis (SQDC), posted annual sales of $537M for FY2021 (YE: March 2021), a major increase of 72% YoY. We maintain our belief that Canadian cannabis operators will see increased revenue growth as more retail stores are opened across the country.


As of June 14, 2021, the Canadian big four LPs are trading at a 120% premium (up from 106% in the prior week) over their U.S. peers. We continue to believe this valuation gap will diminish as the U.S. moves closer to legalization. 

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

Average EV/R

Source: S&P Capital IQ, FRC

The average retail price per gram decreased week-over-week from $11.25 to $11.24. The chart below shows the Canadian retail dried cannabis flower pricing trend:


Canadian Retail Dried Cannabis Flower Pricing

Source: Online Provincial Cannabis Stores, FRC

Canadian Retail Cannabis Stores

As of June 14, 2021, there are 2,136 retail cannabis stores, a week-over-week increase of four stores across Canada, including three in AB, and one in B.C.

Nationwide Store Count

Source: Provincial Websites, FRC

Source: Provincial Websites, FRC

Weekly Psychedelic Commentary

 Psychedelic Industry Performance

Source: TMX Money, FRC

Weekly Cannabis Commentary:

Source: https://www.researchfrc.com/weekly-cannabis-commentary-88