Michigan Cannabis Trends
Michigan sales in the month of November came in at ~$203M, which represents a 2.9% sequential decline. Michigan cannabis sales are up 33.2% YoY due to more access being available to cannabis in the state to their citizens. Unit volumes were only down 0.1% sequentially but up 92.2% YoY. Unit volumes continue to be very strong in the state of Michigan. Sadly, as we have seen in many other states, their pricing power is deteriorating. The average unit price was down 2.8% sequentially and down 30.7% YoY. It does seem like we have seen the worse of the pricing power declining when looking at it on a ROC basis, but we do continue to forecast it lower from here.
Hedgeye Cannabis Monthly Q&A + Industry Trends Call.
CALL DETAILS:
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We are hosting our monthly Q&A and Cannabis Industry Trends Update call for subscribers next Tuesday. We will answer questions regarding our position monitor, our process, and legalization and give an update on our state-by-state cannabis sales tracker.
Please submit your questions in advance to - You can also submit them live during the event, but chances are you will get a better answer from us by sending them in advance!
Trulieve Secures Financing.
Trulieve Cannabis Corp (TCNNF) is a Hedgeye Cannabis Best Idea Long.
Trulieve announced today the closing of a commercial loan secured by a cultivation and manufacturing site in Florida for aggregate gross proceeds of $71.5 million. Trulieve will pay interest at a fixed rate of 7.53% for the duration of the five-year loan. The Company intends to use the net loan proceeds for general corporate purposes. "We are pleased to announce this non-dilutive financing at industry-leading terms, particularly given the current macroeconomic backdrop," said Trulieve Chief Executive Officer, Kim Rivers. "This loan provides Trulieve greater flexibility as we focus on improving cash flow in 2023." It is uncertain what the cannabis space will look like in the coming months/years, but access to capital in the industry is getting much harder.
