Market share trends in Florida (TCNNF, CURLF)
The Florida Office of Medical Marijuana Use (OMMU) releases updated cannabis data every Friday.
For the week ending July 24th, the number of qualified patients in Florida’s medical marijuana program grew 1.1% WoW, a slight deceleration following two strong weeks of patient growth. Both Trulieve (TCNNF) and Curaleaf (CURLF) added dispensing locations between July 20th – 24th. Trulieve’s new Tarpon Spring storefront brings the company’s footprint to 53 stores in Florida and 55 nationwide. The yearend goal is 68 stores nationwide.
On a 4-week moving average basis, Trulieve continues to control approximately half of the state’s volume in flower (oz) and mgs THC sold with just a 20% market share in retail units.
Curaleaf (CURLF) is on the Hedgeye Cannabis Long Bias List.
Trulieve (TCNNF) is a Hedgeye Cannabis Best Idea Long. For a replay of our Best Idea Long presentation CLICK HERE.
Innovative Industrial Properties (IIPR) adds two more NJ properties to portfolio
Last week, the cannabis REIT company IIPR closed on two sale-leaseback transactions in New Jersey with subsidiaries of Columbia Care Inc. The purchase prices for both properties, an industrial building at ~50,000 sq. ft and a retail location at ~4,000 sq. ft., were approximately $12.4 million, excluding transaction costs. This comes a week after the company purchased a property in Blue Anchor, NJ for a $5.5 million.
We added IIPR to the Hedgeye Cannabis Long Bias List at the end of May. Based in San Diego, Innovative Industrial Properties, Inc. (IIPR) has been the best performing Cannabis-related equity for the past three years, with an average return of 40%. It is up 26.4% YTD.
IIPR is a real estate investment trust focused on the acquisition, ownership, and management of specific industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.
Innovative Industrial Properties (IIPR) is on the Hedgeye Cannabis Long Bias List.
LeafLink raises $250 million in debt financing
LeafLink, a cannabis industry wholesale inventory and ordering platform, made the largest debt financing deal in the industry last week. The marijuana e-commerce platform stated that it plans to use the capital to increase liquidity via their digital supply chain financing solution, LeafLink Financial. This senior secured credit facility with a private commercial lender is a positive sign towards loosening capital markets for cannabis companies, despite sustained banking difficulties brought by federal illegality.
