Market share trends in Florida (TCNNF, CURLF, GTBIF, CCHWF, LHSIF)

The Florida Office of Medical Marijuana Use (OMMU) releases updated cannabis data every Friday.

For the week ending October 15th, the number of qualified patients in Florida’s medical marijuana program grew 0.9% WoW or 44.1% YTD to 430,823 qualified patients with active ID cards. Demand weakened slightly, with THC in mgs sold declining -0.5% WoW to 123.1 million mgs. CBD in mgs sold grew 8.5% WoW to 3.6 million mgs, while flower in oz. sold fell -6.8% WoW to 44,754 oz. sold following a record week. Trulieve and One Plant were both approved for new dispensary locations, bringing the statewide total to 284 approved dispensing locations.

On a 12WMA, Trulieve’s THC in mgs sold per dispensing location declined by -49 bps – Liberty Health Sciences (LHSIF) continued its three-week decline, falling -176 bps. In terms of flower on a 12WMA, Trulieve gained 29 bps, while Curaleaf and GrowHealthy gained by 416 bps and 324 bps, respectively. On a 4WMA, Trulieve maintains a disproportionate market share, with 50.7% share of mgs THC sold, 36.0% of mgs CBD sold, and 52.8% of oz. in flower sold, at just 21.8% share of dispensing locations. 

Florida’s medical marijuana marketplace is still in early stages with strong potential – the state’s medical marijuana program has yet to reach 2% of the population, edibles were just introduced to the market in August, and there’s a broad range of qualifying medical conditions, notably ‘severe and chronic pain.’ The rising tide that is patient volume growth lifts all ships.

Cannabis Insights | Florida market data (TCNNF), ancillary draws capital, and a positive NJ poll - Slide1

Cannabis Insights | Florida market data (TCNNF), ancillary draws capital, and a positive NJ poll - Slide2

Cannabis Insights | Florida market data (TCNNF), ancillary draws capital, and a positive NJ poll - Slide3

New equity fund focusing on ancillary cannabis businesses raises $102M

Pennsylvania-based Intrinsic Capital Partners announced that it had raised $102 million for its growth equity fund that invests in life science and technology businesses focused on the legal cannabis and hemp industries.  The firm’s advisory board includes veteran executives who bring decades of experience in healthcare, technology, consumer marketing, and regulatory affairs: Bob McComb (former CEO of Liz Claiborne, Inc.), Minnie Baylor-Henry (former Director, DDMAC, of the FDA), Bob Sheroff (former Global Head of Supply Chain across multiple divisions within Johnson & Johnson), and Bob Miller, Ph.D. (former SVP of Gilead Sciences).

“While developing our investment thesis and fund strategy, it became clear to us that many of these businesses would benefit from more than just capital,” commented Cornelius Merlini, one of the three founders of Intrinsic. “So, we built a top team of advisors who have scaled valuable businesses and are able to provide our portfolio companies with strategic advice, mentoring, operational support, and regulatory know-how,” Merlini added.

To date, Intrinsic has committed $65 million to four portfolio company investments, including ACT Laboratories, Inc. (lab testing for cannabis), Treez, Inc. (POS software for marijuana retailers), Hound Labs, Inc. (marijuana and alcohol breathalyzer technology), and Elemental Brands, Inc. (hemp-derived consumer healthcare products). The Intrinsic team expects to invest in two or three more companies with this first fund.

It’s the first fund of its kind to target the underserved ancillary cannabis and hemp businesses. Their entry highlights the growing investor interest in the space and the overall industry's capital scarcity.

Another NJ poll projects marijuana legalization passing

In a new poll released last Friday by the Stockton University Polling Institute, NJ voters supported the marijuana legalization referendum on the ballot by an approximate 3:1 margin. When asked whether they “support or oppose a constitutional amendment legalizing marijuana in New Jersey,” likely NJ voters were 66% in favor and 23% in opposition. This follows a different poll released last week by Fairleigh Dickinson University which found NJ voters approving of marijuana legalization by a 2:1 margin. Last month, a poll conducted by law firm Brach Eichler found that 65% of likely voters favored the policy change.

The Stockton University poll indicated how support for the amendment to legalize steadily decreases with age. Among 18-29-year-old respondents, 88% said they supported it. Among 30-49 year-olds, 76% supported. With 50-64 year-olds, 60% supported, and with the 65 and older cohort, 52% did.

So far, polling is looking highly favorable for legalization passing NJ.  Passage in NJ would be the most significant win out of the five states with legalization on the ballot this November.  In terms of legalization momentum, NJ passing is widely anticipated to initiate a domino effect in the Northeastern corridor, galvanizing other state governments to legalize recreational usage.