The Canada-listed U.S. cannabis stocks we’ve dug up seem to be overlooked by the market yet have operations that span across multiple legal cannabis states
SmallCapPower | September 5, 2019: MSOs, or Multi-State Operators, are cannabis companies with operations that span across multiple legal cannabis states in the U.S. Generally, these entities are structured as holding companies with separate state subsidiaries that hold state licenses for seed-to-sale activities. Although these companies are not permitted to bring cannabis and cannabis-derived products across state lines, MSOs can share intellectual property, equipment, branding, and employees across state lines. With U.S. cannabis regulations expected to loosen over time, operating in multiple states can be advantageous in achieving rapid growth. Today, we have identified four potentially overlooked U.S. cannabis stocks, MSOs with a strong footprint in the United States.
*Share prices as at August 30, 2019, data obtained from S&P Capital IQ
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4Front Ventures Corp. (CSE:FFNT) – $0.71
Cannabis
4Front Ventures is a MSO that owns, operates or manages six cultivation and production facilities and 11 retail facilities across eight states. FFNT has developed two >50,000 square-foot indoor cultivation facilities in Washington with yields of more than 300 g/sq. ft. In Washington, 4Front operates one of the largest cannabis product manufacturing facilities in the world, where it produces some of its top-selling brands of flower, edibles, and oil-based products.
- Market Cap: $376.9M
- 30-Day Return: -34.4%
- 90-Day Return: -42.3%
- Average 90-Day Trading Volume: 130,000
Columbia Care (NEO:CCHW) – $5.50
Cannabis
Columbia Care is one of the biggest MSOs in terms of market cap in the medical cannabis industry. As of 2018, the Company owns 54 facilities and operates with 35 licenses in 15 jurisdictions in the U.S, EU and Puerto Rico. The Company’s current cultivation facilities allow for 730,000 sq. ft. of cultivation and potential to produce. This allows for 125,000 kg of annual flower. On May 14, 2019, the Company announced the start of its research study with Westmed Medical Group to test the safety and efficacy of precisely-formulated, cannabis-based medicines being used to treat rheumatologic patients. The Company announced a study with the Center for Discovery on November 14, 2018, to examine the use of cannabis-derived medicines to treating epilepsy.
- Market Cap: $1,187.3M
- 30-Day Return: -13.5%
- 90-Day Return: -21.6%
- Average 90-Day Trading Volume: 13,000
SLANG Worldwide Inc. (CSE:SLNG) – $1.03
Cannabis
SLANG focuses on acquiring and developing market-proven regional brands and developing new brands to help meet the changing needs of cannabis users globally. The Company sells products at more than 2,600 stores across Arizona, California, Colorado, Florida, Oregon, Maine, Massachusetts, Michigan, Nevada, New Mexico, Vermont, Canada, Puerto Rico and Jamaica. On July 22, SLANG announced that it will be entering the European Union, starting with Greece, through a partnership with Global Cannabis Corp.
- Market Cap: $247.5M
- 30-Day Return: -22.3%
- 90-Day Return: -43.3%
- Average 90-Day Trading Volume: 467,000
Cansortium Inc. (CSE:TIUM.U) – $1.18
Cannabis
Cansortium is a U.S.-based vertically integrated multi-state operator (MSO), with licenses to cultivate and sell medical cannabis in Florida, Canada, Texas, Pennsylvania, and Puerto Rico. Consortium’s focus is on medical markets in the U.S. and adult-use in Canada. The Company currently operates 14 dispensaries in Florida with plans to open an additional 16 by the end of 2019, bringing the total dispensaries in the state to 30. In May 2019, the Company received a Canadian cultivation license and currently has ~20,000 sq. ft of cultivation operation in Grimsby, Ontario, with plans to increase to 120,000 sq. ft. On August 29, 2019, Cansortium reported Q2/19 financials results, highlighted by $6.1M in revenue, an 11% increase QoQ, along with an Adjusted EBITDA loss of $2.6M.
- Market Cap: $236.0M
- 30-Day Return: -30.4%
- 90-Day Return: -54.0%
- Average 90-Day Trading Volume: 83,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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