Market share trends in Florida (TCNNF, LHSIF/AYRWF, CURLF, GTBIF, CCHWF)
The Florida Office of Medical Marijuana Use (OMMU) releases updated cannabis data every Friday.
For the week ending January 7th, the number of qualified patients in Florida’s medical marijuana program grew 0.7% WoW to 462,562 qualified patients with active ID cards. THC in mgs sold fell -11.4% WoW to 127.1 million mgs, CBD in mgs sold fell -7.9% WoW to 3.2 million mgs, and flower in oz. sold fell -0.6% WoW to 47,643 oz. sold.
Curaleaf and Trulieve are starting 2021 strong on the news of Democrats winning the Senate, with the former approved for three dispensaries and the latter for two last week.
Florida’s medical marijuana marketplace has strong potential – the state’s medical marijuana program still has a runway for population penetration, 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.
Canopy Growth plans to open nine retail stores across Ontario in January (CGC, STZ)
CGC is a Hedgeye Cannabis Best Idea LONG.
Tokyo Smoke, Canopy Growth’s award-winning retail brand, announced the planned opening of 9 brick-and-mortar retail franchised cannabis locations across Ontario throughout January. Following a robust storefront expansion in 2020, the announcement demonstrates how Canopy focuses on Ontario as a primary market for expansion.
“Ontario is the largest market in the country for legal recreational cannabis, and it’s where the Tokyo Smoke brand was built – we’re excited to bring our education-first approach to cannabis retail to key communities and regions across the province,” said Lacey Norton, Head of Retail for Tokyo Smoke.
Tokyo Smoke’s retail expansion into Ontario will bring the number of Tokyo Smoke retail cannabis stores in the province to 22 and 35 across Canada by the end of January. Tokyo Smoke’s growing retail footprint also includes 6 locations in Alberta and 7 in Manitoba.
The province has a population of 14.7M people, or roughly 40% of the Canadian population. As of the most recent Health Canada data, Ontario made up 31.1% of October’s total retail sales. Meanwhile, Alberta has a population of 4.4M people or roughly 12% of Canada’s population – its sales made up 20.9% of the nation’s total legal sale. The province's unit growth will provide operators with a retail presence there (CGC, HITIF, FFLWF) with an expansion opportunity and, hopefully, help curtail the illicit market.
On the news of the Democrats winning control of the Senate following the Georgia runoff elections, Canopy Growth CEO, David Klein, said, “What we really need is some combination of SAFE Banking, a revised Cole memorandum, and reclassification by the executive branch, all of which … probably happens in the next six-to-eight months anyway. We're pretty confident we'll be operating in the U.S. a year from now. So, we feel pretty good about that." The company has clear visibility into the U.S. market through its investment in TRSSF and ACRHF
Subversive Capital Acquisition Corp. upsizes previously announced private placement (SBVCF)
SBVCF/TPCO is on the Hedgeye Cannabis LONG Bias List.
Subversive Capital Acquisition Corp., a special purpose acquisition company, announced the upsize of its previously announced private placement of subscription receipts and non-voting shares of its wholly-owned subsidiary. The non-brokered private placement resulted in aggregate equity commitments of approximately US $63 million, compared to $36.5 million announced previously – an upsize of more than 70%, in connection with the proposed transaction according to which SCAC will acquire, directly or indirectly, all of the equity of CMG Partners, Inc. ("Caliva") and Left Coast Ventures, Inc. ("Left Coast Ventures") to form TPCO Holding Corp. ("The Parent Company").
Michael Auerbach, SCAC's Chairman, said, "The private placement reflects investor confidence in The Parent Company. Current investors in Caliva, LCV, and Subversive LPs doubled down on their support. We are also honored to have artists like Rihanna, Meek Mill, Yo Gotti, and DJ Khaled supporting The Parent Company with their investments. We have the unique opportunity to consolidate the California market, the largest cannabis economy in the world today… The Democratic Senate majority gives us further confidence we will see a major regulatory shift on the federal level in the next 12-24 months, which enables us to expand our impactful cannabis brands across the United States. The Parent Company is positioned to capitalize on "The Perfect Storm" and is the first cannabis company built for the post-prohibition era."
SCAC anticipates that the Transaction will close on or around January 15, 2021, subject to customary closing conditions.
