Historic Day
We will a detailed note out shortly on our thoughts from yesterday Historic Day.
Click Here to view the full draft.
Valens is just so so
We recently tool Valens off the LONG list. The company reported 2Q21 EPS (C$0.05) vs year-ago (C$0.03) FactSet's EPS consensus is (C$0.05). Net Revenue missed at C$18.8M vs FactSet C$21.4M. With reported (A)EBITDA coming in at (C$5.0M) vs FactSet (C$2.5M). The balance sheet is strong, but it should be after another ATM.
Massachusetts Tracker
Massachusetts sales remain strong into the week of 7/2. Sales were $28 Million which is a 87% increase over last year. The annual run rate for Massachusetts is $1.209 Billion which is an increase over last week. The largest players in MA are Curaleaf, Green Thumb, and Ayr.
IL Expanding Licenses
The astounding average annual revenue of $17 Million of a dispensary in Illinois is not going to last much longer. Governor Pritzker is expected to sign the bill which passed May 28th into law today. The law authorizes three lotteries that would more than double the number of dispensaries from the 110 now in operation. The primary lottery would issue 75 licenses that were supposed to be granted last May but have been on hold because of legal challenges and problems with scoring. Another lottery will award 55 dispensary licenses to applicants that received at least 85 percent of the maximum score. A third would award 55 licenses to remaining applicants. The bill will also allow existing owners to move dispensaries to new locations 90 days after the law is enacted. Allowing existing dispensaries to move has been a large political issue because it’s seen as an additional advantage to companies that already had a head start. Cresco and Green Thumb have the largest footprints in the state with 13 and 12 facilities respectively.
