Florida’s repeal of its smokable marijuana ban should greatly benefit the Canada-listed U.S. cannabis stocks we’ve dug up
SmallCapPower | March 12, 2019: Back in late January, Florida governor Ron DeSantis requested that Florida legislators repeal a ban on smokable marijuana for medical purposes. If lawmakers do not act by March 15, the governor said that he would remove the appeal filed by the previous governor, Rick Scott, who has upheld the ban on smokable flower. Last Thursday, the Florida senate moved forward with a bill to repeal the States’ ban on smokable cannabis. The senate passed Bill SB 182 and it will now head to the Florida House of Representatives. It is expected that the Bill will pass in the House this week, sending it back to Governor DeSantis to sign into law by the March 15 deadline. According to BDS Analytics, the Florida medical cannabis market is expected to grow from ~US$0.5B in 2018 to ~US$1.7B in 2022. Today we have weeded out four Canada-listed, U.S. cannabis stocks that could benefit from smokable flower in Florida.
*Share prices as at close March 8, 2019, data obtained from S&P Capital IQ
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Trulieve Cannabis Corp. (CSE:TRUL) – $15.50
Cannabis
Trulieve is a “seed-to-sale” operation in the state of Florida, with plans to acquire additional facilities outside of Florida in 2019. The Company operates a 507,000 sq. ft. facility, yielding 19,500 kg annually. Additionally, Trulieve has expansion plans to add another 127,500 sq. ft., which the Company estimates will increase production by 10,215 kg. TRUL also has a network of 24 dispensaries selling branded products, with a total of 125 stock keeping units (SKUs) and over 137,000 unique patients. The Company plans to have 30 dispensaries by the end of Q1/19. Cannabis is currently only legal for medical use in Florida.
- Number Dispensaries in Florida: 30
- Market Cap: $1,746.6 Million
- YTD Return: 40.9%
- 30-Day Average Volume: 252,000
- 90-Day Average Volume: 230,000
Liberty Health Sciences Inc. (CSE:LHS) -$1.01
Cannabis
Liberty Health Sciences is a cannabis company that focuses on acquisitions of U.S. based medical cannabis companies. LHS is one of the few licensed producersnd sellers of medical cannabis in Florida, and recently has invested in a licensed producer in Massachusetts. The Company’s production facility in Florida is 25,000 sq. ft. and produces 1,600 kg of cannabis annually. On February 13, the Company announced the opening of its new dispensary in North Miami, bringing its total number of dispensaries in Miami to two, with a total of nine in the State of Florida.
- Number Dispensaries in Florida: 9
- Market Cap: $345.9 Million
- YTD Return: 9.8%
- 30-Day Average Volume: 1,393,000
- 90-Day Average Volume: 1,541,000
Curaleaf Holdings, Inc. (CSE:CURA) – $8.43
Cannabis
Curaleaf Holdings is an integrated medical and wellness cannabis operator in the U.S. It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles. As of December 2018, the Company operates a network of 34 dispensaries, 12 cultivation sites, and 10 processing sites in 12 states.
- Number Dispensaries in Florida: 22
- Market Cap: $3,857.8 Million
- YTD Return: 30.5%
- 30-Day Average Volume: 541,000
- 90-Day Average Volume: 467,000
iAnthus Capital Holdings, Inc. (CSE:IAN) – $6.70
Cannabis
iAnthus Capital Holdings is a cannabis-focused company operating ~275,000 sq. ft. of cultivation and 63 dispensaries across 11 U.S. states. The Company’s primary asset, GrowHealthy, operates a 200,000 sq. ft. facility and is scheduled to open 15 additional dispensaries in 2019, and is on tract to operate 30 by the end of 2020. In August, the Company announced a US$8.1M investment to expand the Company’s Lake Wales facility. The expansion will increase capacity to 11,689 sq. ft. and includes a 500 sq. ft. mock dispensary used for staff training. On October 18, 2018, the Company announced its acquisition of MPX Bioceutical in a deal worth $835 million. The Company currently has three operational locations in Florida and hopes to have 20 by the end of 2019.
- Number Dispensaries in Florida: 3
- Market Cap: $1,020.5 Million
- YTD Return: 21.8%
- 30-Day Average Volume: 763,000
- 90-Day Average Volume: 439,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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