Weekly Cannabis Commentary

Cannabis Industry Performance

Source: FRC

Last week, U.S. cannabis stocks outperformed their Canadian peers. Several key developments:

  • NY Governor emphasized that the state is committed to implementing its marijuana program as quickly as possible.
  • The Idaho Supreme Court overturned a new law that would have impeded medical marijuana legalization.
  • New Mexico increased the amount medical cannabis consumers can purchase per visit to two ounces per day, up from eight ounces every 90 days.

Valuation

As of August 30, 2021, the Canadian big four LPs were trading at a 72% premium (up from 70% 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:

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 $11.14 to $11.13. 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 30, 2021, there are 2,479 retail cannabis stores, a week-over-week increase of 28 stores across Canada, including 25 in Ontario, two in Alberta, and one in B.C.

Nationwide Store Count

Source: Provincial Websites, FRC

Weekly Psychedelic Commentary

Psychedelic Industry Performance

Source: TMX Money, FRC

Last week, California lawmakers ruled that any attempts to decriminalize psychedelics will have to wait until 2022. However, the lawmakers cited growing evidence of psychedelics’ ability to treat substance abuse, and psychiatric disorders.

Weekly Cannabis Commentary:

Source:https://www.researchfrc.com/weekly-cannabis-commentary-99