Weekly Cannabis Commentary
Author: Sid Rajeev
Cannabis Industry Performance
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.
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.
The following chart shows the average EV/R of the companies we track in both countries:
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 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.
Weekly Psychedelic Commentary
Psychedelic Industry Performance
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.