Florida Tracker
We have added two valuable columns of data to our tracker. We are now tracking market share using Grams of THC and CBD sold. In order to normalize any outliers, we are comparing the last 4 week average market share to the preceding 4 week average in order to track which way a company is trending. As mentioned in our previous notes, we see Trulieve's market share shrinking by 1.48% in the past few months, with Verano's market share increasing by 1.5%. The state as a whole saw sales go down this week in comparison to last with a 16% decrease in total flower sales.
Green Thumb $217 Million Debt Financing
GTBIF is a Best Idea Long
Green Thumb closed on $217 Million debt financing in senior secured notes. The company will use the proceeds to retire the existing $105 Million senior secured debt due May 2023 and for general purposes as well as growth, AKA acquisitions. CEO Ben Kovler stated: “History has taught us that the winners in new industries are those with the lowest cost of capital and the strongest balance sheets.” The 7% interest rate is an industry-leading rate, and as of 12/31/2020, the company had a cash balance of $84 Million. The financing also allows the company to borrow an additional $33 Million over the next 12 months. 1,459,043 warrants were also issued to sweeten the deal exercisable at $32.68 per share for a period of 60 months from the date of issue. With this new funding, we will likely see some acquisitions come in the near future.
Possible Expansion of Texas Medical Program
For a population of 28.7 Million, Texas has a whopping total of three dispensaries. Texas House gave approval on Thursday to a bill that would expand the state’s medical cannabis program to include those with chronic pain, all cancer patients, and Texans suffering from PTSD. There are only about 3,500 Texans registered with the state to use medical cannabis, although estimates suggest over 2 Million would qualify for the program. Although the bill lessens the penalties for possession and will possibly raise the cap for THC content, it does not address the severe lack of access Texans have to cannabis. The only current public MSO to have a dispensary in the state is CNTMF or Cansortium giving it very strong demand due to the shortage.
