Florida Tracker
Curaleaf (Long) will report earnings AMC.
Florida companies have been following the same trend they have had for the past few weeks. Trulieve and Surterra have been losing market share as Ayr and Curaleaf gain the most market share. Curaleaf will report earnings today after market close, and we expect to hear excellent top-line numbers from them based on robust sales in Florida this past quarter. Florida makes up 30% of Curaleaf's total revenue. Verano added two dispensary locations this past week, bringing their total FL dispensaries up to 36. Ayr also opened one dispensary location bringing their total to 39.
Leafly IPO
Cannabis website Leafly is in talks to merge with blank-check company Merida Merger Corp in a deal that would value the combined company at more than $530 Million. Leafly is a site where one can learn more about cannabis and find nearby places to purchase it. Leafly offers pickup at certain dispensaries, and customers can also rate the weed they used on the website. The company says it had 220 million annual visitors in 2020, which is up 12% from 2019, thanks to the easing of regulations in some states. The company plans to partly use the proceeds from the deal to invest more into its east coast business. Leafly intends to list on Nasdaq under the symbol LFLY.
Mexican Weed Smuggling
When one hears of Mexican weed smuggling, one assumes that cartels bring over illegal weed to America. However, nowadays, legal weed from the US is illegally transported into Mexico. As a result, the most sought-after premium weed grown in California is heading South illegally and being sold in a booming boutique market across Mexico. Traffickers from California load their suitcases before boarding on planes or walking over the bridge into Mexico. “The demand here for American weed has exploded,” said one dealer in Mexico City, who estimated that 60 percent of the marijuana he sells now comes from California. It’s aspirational for many of my clients. They want to be seen smoking the best stuff, the stuff rappers brag about smoking.” This booming market is made possible by the Mexican government's inaction on legalization despite the supreme court providing their congress an ultimatum on legalizing. I am sure that Mexico will legalize and begin sales of cannabis soon, but one thing is clear, Mexican citizens love Californian weed.
