Weekly Cannabis Commentary

Author: Sid Rajeev

Cannabis Industry Performance

Source: FRC

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.

Valuation

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.

Source: S&P Capital IQ, FRC

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

Canadian Retail Cannabis Pricing

Source: Online Provincial Cannabis Stores, FRC

 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 Dried Cannabis Flower Pricing

Source: Online Provincial Cannabis Stores, FRC

 

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.

Nationwide Store Count

Source: Provincial Websites, FRC

Weekly Psychedelic Commentary

Psychedelic Industry Performance

Weekly Cannabis Commentary:

Source: https://www.researchfrc.com/weekly-cannabis-commentary-90