Weekly Cannabis Commentary

Author: Sid Rajeev

Cannabis Industry Performance

Cannabis Industry Performance

Source: FRC

Last week, Canadian cannabis stocks outperformed their U.S. peers. Statistics Canada reported record cannabis sales for May of $313M, up 68% YoY. We note that U.S. cannabis stocks had outperformed in the previous four weeks.

Valuation
As of July 26, 2021, the Canadian big four LPs were trading at a 94% premium (up from 89% in the previous week) over their U.S. peers. We continue to believe the valuation gap will diminish as the U.S. moves closer to federal legalization.

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 fell week-over-week from $11.21 to $11.19. 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 July 26, 2021, there are 2,351 retail cannabis stores, a week-over-week increase of 14 stores across Canada, including six in Ontario, and four in Alberta.

Nationwide Store Count

Source: Provincial Websites, FRC

Source: Provincial Websites, FRC

Weekly Psychedelic Commentary

Psychedelic Industry Performance

Psychedelic Industry Performance

Source: TMX Money, FRC

Last week, Braxia Scientific Corp (CSE: BRAX) announced they secured insurance coverage from Medavie Blue Cross to provide fully covered ketamine treatments to individuals suffering from depression and related disorders. We believe insurance coverage is an indication of the growing acceptance of psychedelics.

Weekly Cannabis Commentary:

Source:https://www.researchfrc.com/weekly-cannabis-commentary-94