The Canada-listed U.S. cannabis stocks we’ve weeded out are likely to benefit from the expected liberalization of US legislation and rising international demand
SmallCapPower | March 15, 2021: With the Democrats now controlling the U.S. Congress as well as the Presidency, pro-cannabis legislation is expected to pass in the near future. There are also 14 states that have currently legalized the recreational use of cannabis and 35 states that have legalized it for medical purposes. That being said, the four US cannabis stocks we have discovered have produced some impressive gains year-to-date and this rally is expected to continue as marijuana demand increases globally.
*Share price data and other metrics as of March 12, 2021
Trulieve Cannabis Corp. (CSE:TRUL) – $61.77
Cannabis
Trulieve is a seed-to-sale operation in the state of Florida, with plans to acquire additional facilities in Massachusetts, California, and Connecticut. The Company claims to be the largest, fully-licensed medical cannabis company in the State of Florida, with over 1.6M sq. ft of cultivation space yielding ~55,000 kg annually. Trulieve is in the process of constructing an additional 72,000 sq. ft, which would increase production capacity by 10,000kg. TRUL also has a network of 37 dispensaries selling branded products, with a total of 240 stock keeping units (SKUs) and over 203,600 patients as of August 31, 2019. Trulieve currently has 76 dispensaries open in Florida and presently has ~50% market share in the Sunshine State.
- Market Cap: $7,614.8M
- YTD-Return: +53.7%
- 7-Day Return: +7.3%
- 30-Day Average Trading Volume: 202,630
Curaleaf Holdings, Inc. (CSE:CURA) – $19.82
Cannabis
Curaleaf is a multi-state cannabis operator (MSO) in the United States. As a vertically integrated, high-growth cannabis operator known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select and Grassroots, provide industry-leading service, product selection and accessibility across the medical and adult-use markets. Curaleaf currently operates in 23 states with 101 dispensaries, 23 cultivation sites and over 30 processing sites, and employs over 3,800 team members across the United States. Curaleaf’s flagship product Select is America’s number one Cannabis Oil Brand. The brand was acquired by Curaleaf in February 2020, and is currently available across 17 states including Arizona, California, Colorado, Connecticut, Florida, Illinois, Maine, Massachusetts, Michigan, Maryland, New York, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, and most recently in Utah.
- Market Cap: $13,561.8M
- YTD-Return: +30.1%
- 7-Day Return: +6.0%
- 30-Day Average Trading Volume: 977,570
Innovative Industrial Properties, Inc. (NYSE:IIPR) – $235.35
Cannabis REITs
Innovative Industrial Properties is a company that engages in the acquisition, ownership, and management of industrial properties that are leased to licenced operators for medical cannabis facilities. The Company operates as a real estate investment trust and is the first and sole real estate company on the New York Stock Exchange that is focused on the U.S. cannabis industry. On March 11, 2021, IIPR announced that it had completed the acquisition of a property in San Marcos, Texas, and entered into a long-term lease with Surterra San Marcos, a subsidiary of Surterra Wellness. Innovative Industrial Properties recently announced Q4/20 results, reporting net revenue of US$37.1 million, a 110% increase from the prior year’s quarter.
- Market Cap: US$5,631.0M
- YTD-Return: +2.9%
- 7-Day Return: +8.5%
- 30-Day Average Trading Volume: 558,320
Cresco Labs Inc. (CSE:CL) – $16.68
Cannabis
Cresco Labs focuses primarily on cultivating medical-grade cannabis, manufacturing medical cannabis products, and distributing products to medical patients and recreational users. Currently, the Company has one of the largest footprints in the U.S., with operations in 9 states, 16 production facilities, 29 retail licenses and 19 operational dispensaries. Cresco recently announced the expiration of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) waiting period for its acquisition of Bulma Wellness, a vertically-integrated CBD operator in Florida, which means Cresco Labs has been cleared to acquire the company by the U.S. Department of Justice and the transaction is expected to close in the second quarter of 2021. Analysts are expecting Cresco Labs to pull in $1 billion in revenue by 2022.
- Market Cap: $5,122.5M
- YTD-Return: +32.9%
- 7-Day Return: +1.0%
- 30-Day Average Trading Volume: 907,980
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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