Trulieve (TCNNF) share unlock Friday (7/25)
Back in December 2019, Trulieve extended its lockup agreement on 11,205,960 subordinate voting shares held by the company's founders. Initially, they were set to be released on January 25, 2020, but they were then locked up to May 15, 2020. The remaining 54,047,133 super-voting shares were set to stay under lockup restrictions until July 25, 2020.
The share unlock extension came on the heels of a widely criticized short-seller report by Grizzly Research (unrelated to Grizzle) on December 17, 2020.
Below is an exchange between Grizzle and Trulieve CEO Kim Rivers from an interview earlier this week:
SCOTT WILLIS, GRIZZLE INTERVIEW: "Okay, great. This has been really helpful. Before we go, I just want to ask you one question on the mind of all the investors. I see this a lot on Twitter and social media. You have a share unlock coming up. I'm just curious, kind of how do you think about share unlocks? Because I know you guys have pushed it in the past, which is generally just saying you're very confident in the future of the company. So, I mean, is this just kind of for you a non-event because you're operating through it? Or how do you think about — how should investors think about share unlocks with Trulieve?"
KIM RIVERS, TRULIEVE CEO: "Yeah. Sure. So, I mean, I think that look — I've said publicly, and I will continue to say that, and I think I've shown over time. Right? I'm investing in the company, so I'm a buyer, and I'm not a seller, and that will continue to hold. I think that when you look at the history of particularly the boards — so when you look at the Trulieve unlocks, really the vast majority of shares are held by insider board members that are remaining board members. And so, you know, I would just overlay the specifics, and it's different from company to company. I think it's important for folks to be aware of it. Right? And I think it's important for folks to understand who those holders are and, you know, potential motivations. But I mean, I think that overall, what I can say is that, you know, look, this is a — and I believe a once in a lifetime industry opportunity for us to all participate in. And, you know, I think that we've operated well. I think we're going to continue to operate well. The best is yet to come. As far as we're concerned, in the Trulieve story and, you know, we just look forward to future growth. So, you know, it is what it is to a certain extent. But I think that we've shown that there's going to be you know, it's's been very managed in the past. I don't think that there's any, you know, any reason to think that it couldn't be managed regardless of whether there's an official lockup or not. Right? In the future. So, that's what I would say."
Truelive is a Hedgeye Cannabis Best Idea Long. For a replay for our Trulieve presentation CLICK HERE
With the completed acquisition of Grassroots, Curaleaf (CURLF) becomes the world's largest cannabis company.
Yesterday, Curaleaf announced the completed acquisition of Grassroots. Curaleaf is now the world's largest cannabis company by revenue and the most diversified vertically integrated cannabis company in the United States, the world's largest cannabis market. The transaction expands Curaleaf's presence from 18 to 23 states, with the combined company having affiliated operations spanning over 135 dispensary licenses, 88 operational dispensary locations, over 30 processing facilities, and 22 cultivation sites with 1.6 million square feet of current cultivation capacity. Curaleaf's expanded geographic dispensary presence now offers access to medical or adult-use cannabis to more than 192 million people or roughly two-thirds of the United States population.
Curaleaf is on the Hedgeye Cannabis Long Bias List.
Survey shows trends in cannabis usage in the age of COVID
A survey conducted by CivicScience, between April 18, 2020 – July 17, 2020, found that at least 1 In 6 American adults responded to use cannabis at least a few times each year. Gen Z (18 – 24) has the highest usage, which bodes well for the longer-term prospects. The caveat to that is the daily usage of cannabis is higher among the 25 to 54 cohort.
