Weekly Cannabis Commentary

Cannabis Industry Performance

Cannabis Industry Performance

Source: FRC

Although shares of both Canadian and U.S. cannabis stocks declined, U.S. stocks outperformed due to the following positive developments:

  • Maine set a monthly recreational cannabis sales record in July, generating US$9.4M, up 45% MoM.
  • A new ruling in Alaska will allow cannabis manufacturers and retailers to start selling edibles at twice the previously permitted potency.
  • Wisconsin introduced a bill to legalize recreational cannabis.
  • Missouri posted record medical cannabis sales in July, generating US$21M, up 28% MoM.

Valuation

As of August 16, 2021, the Canadian LPs were trading at a 69% premium (down from 79% in the previous week) over their U.S. peers.

Source: S&P Capital IQ, FRC

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

Canadian Retail Cannabis Pricing

Source: Online Provincial Cannabis Stores, FRC

 The average retail price per gram fell week-over-week from $11.17 to $11.15. 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 August 16, 2021, there are 2,448 retail cannabis stores, a week-over-week increase of 70 stores across Canada, including 51 in Ontario, and 13 in Saskatchewan.

Nationwide Store Count

Source: Provincial Websites, FRC

Source: Provincial Websites, FRC

Weekly Psychedelic Commentary

Psychedelic Industry Performance

Source: TMX Money, FRC

Last week, Compass Pathways (NASDAQ: CMPS) announced they applied for a new patent to treat stronger forms of depression, while Atai Life Sciences (NASDAQ:ATAI) launched a new subsidiary to treat mental health disorders.

Weekly Cannabis Commentary:

Source:https://www.researchfrc.com/weekly-cannabis-commentary-97