Weekly Cannabis Commentary
Author: Sid Rajeev
Cannabis Industry Performance
Last week, cannabis stocks across the U.S. and Canada gained strength. U.S. cannabis stocks outperformed their Canadian counterparts on the back of more favourable news. Rhode Island approved a bill to legalize adult-use cannabis, while Curaleaf (CSE: CURA) and Trulieve (CSE: TRUL) expanded their store presence across the nation. In Canada, Organigram Holdings (TSX: OGI) announced plans to raise $500M.
As of June 28, 2021, the Canadian big four LPs were trading at a 128% premium (down from 135% in previous week) over their U.S. peers. The valuation gap diminished due to more favorable developments in the U.S.
The following chart shows the average EV/R of the companies we track in both countries:
Canadian Retail Cannabis Pricing
The average retail price per gram remained unchanged week-over-week. The chart below shows the Canadian retail dried cannabis flower pricing trend:
Canadian Retail Cannabis Stores
As of June 28, 2021, there are 2,196 retail cannabis stores, a week-over-week increase of 36 stores across Canada, including 29 in ON.
Weekly Psychedelic Commentary
Psychedelic Industry Performance