Maryland Cannabis Trends.
Maryland reported monthly cannabis sales in September came in at ~$38M compared to ~$40M the previous month which indicates a 4.2% decline MoM and a 12.8% YoY decline. The interesting reason why the Marland cannabis market is down nearly 13% from the previous year is that price per product is down 22.2% from last year while the number of products sold compared to last year was up 12%. All told, Maryland is a growth market in terms of unit growth but pricing pressure is causing this market to see declining top-line sales compared to last year.
Leafly Hits Quad 4.
Leafly Holdings (LFLY), which operates a website to provide consumers information about where to buy cannabis, is slashing 21% of its workforce -- 56 jobs -- as part of a cost-cutting plan. The reduction in headcount is expected to lower 2023 annual cash operating costs by $16M. The company will take one-time cash restructuring charge ~$500K this quarter due to the layoffs. Leafly also announced preliminary Q3 results. It sees revenue of ~$11.8M, an ~8% increase from the prior-year period, and adjusted EBITDA loss is expected to be between ~$(6M) and ~$(5M). We will have more on this at a later date.
Green Thumb Launching In Convenience Stores.
Green Thumb Industries Inc. (GTBIF) is a Hedgeye Cannabis Best Idea Long.
Green Thumb (GTBIF) announced yesterday plans to expand its medical retail footprint in Florida through a lease agreement with Circle K, the global convenience store retailer. Starting in 2023, Green Thumb plans to launch its test and learn phase of the rollout with approximately ten “RISE Express” (which GTBIF owns) branded dispensaries adjacent to Circle K stores in various Florida locations. Through the exclusive agreement, Green Thumb can lease space from Circle K in Florida, where the retailer currently operates approximately 600 locations. “The opening of RISE Express stores at Circle K locations is a game-changer. Convenience is a strong channel in retail, and people want more access to cannabis,” said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. “The new RISE Express model is a huge step forward in making it easier and more efficient for patients to purchase high-quality cannabis as part of their everyday routine when stopping by their local convenience store.”
