You’re reading a copy of this week’s issue of the weekly New Cannabis Ventures, which we’ve been running since October 2015. The newsletter includes unique information to help our readers stay ahead of the curve. as links to the most important of the week. News.
Friends,
Two weeks ago, we suggested that the global cannabis stock index, which was then down 43% in 2022, was likely to fall before the end of the year. It has dropped even further (15.4% later) and is now 52% lower this year. The bullish factors we mentioned at the time remain intact and we are more interested in these lower prices than we were two weeks ago. Despite this, we are clearly in a bearish stock market in general, and our optimism does not help to choose the best time to enter or expand positions in the cannabis sector. The future looks very bright in contrast to price action lately, and we want to discuss how investors should be prepared for future changes.
We expect great market growth in several states. Illinois is currently increasing its dispensary count by more than 100%. Two weeks ago, we mentioned the eastern states in general. Today we want to refine this observation and mention New York and New Jersey, both in transition to adult use, at the top of the list. Virginia may also be included, and there are other states such as Maryland, Ohio, and Pennsylvania that may also legalize adult use. The big conclusion is that investors need to be prepared for strong growth from the top line.
Beyond that, there are other factors that investors should understand. First, raising capital could be a challenge. New operations typically consume cash, and not all cannabis companies are in a strong position right now. Investors should be able to avoid capital increases, as they can now substantially lower the issuer’s share price.
One last area that investors should consider is market positioning. There are some multi-state operators that are already in many states and their ability to expand into new states right now is in question in our opinion. At the same time, there are MSOs with a more concentrated market presence. Smaller MSOs come to mind, such as Ascend Wellness, Jushi and TerrAscend, as well as Planet 13 Holdings. Each of them has new markets, but is also in a position to expand into new markets. California operators also have opportunities for expansion.
We remain uncertain about the timing of the price improvement for cannabis companies, however, as we said two weeks ago: current valuations seem too low. We expect prices to rise as the fundamentals stabilize and improve in the future.
Jushi Holdings Inc. is a national multi-state cannabis company that operates high-end retail locations, premium brands, and state-of-the-art cultivation, processing, and manufacturing facilities. The company’s platform is designed to set the new standard for a modern and sophisticated cannabis experience.
In recent news and a major victory for medical patients, their families and caregivers across Pennsylvania, Jushi, along with other state operators, can now immediately replace previously withdrawn products, thanks to the court order that goes lift the suspension of the precautionary measures imposed above. . Jushi is one of the few full-scale retail suppliers in Pennsylvania.
Get up to date by visiting the Jushi Holdings investor board that we hold on your behalf as a client of New Cannabis Ventures. Click the blue Follow Business button to stay up to date.
Exclusives
Michigan cannabis sales fell 4% sequentially in May, but rose 25% year-over-year to $ 186.4 million. While medical sales fell nearly 48% year-on-year to $ 23.3 million, adult sales soared 56% to $ 163.2 million.
New Jersey launched its adult cannabis sales on April 21 with strong sales. In the first month, consumers bought $ 24.2 million at 12 dispensaries approved for selling adult cannabis. Eight public companies are approved for adult sales in the state of the garden. BDSA predicts that New Jersey adult sales will drive the state to become one of the fastest growing cannabis markets in the country.
Over the past year and a half, Jushi has expanded its operations from a handful of cultivation rooms to 10. And, with a change in regulations, the company brought new genetics to Pennsylvania. In an exclusive interview, founder, chairman and CEO Jim Cacioppo talks about the company’s growth and what the future holds for Jushi.
Private multistate cannabis operator Holistic Industries, which began 12 years ago focusing on limited licensing markets on the East Coast, has been successful in earning merit-based licenses. The company is located in 11 states and Washington, DC. In an exclusive interview, founder and CEO Josh Genderson talks about its past expansion and plans for 2022.
PharmaCann is focusing on lean operations and the conversion of working capital into cash. In an exclusive interview, CEO Brett Novey talked about how PharmaCann expects to compete and where it sees the company’s opportunities.
Earnings
Fire & Flower’s first-quarter revenue fell 4% sequentially to C $ 40.9 million and fell 7% from $ 44.1 million compared to last year. Newly appointed CEO Stéphane Trudel focuses on the next phase of the company’s evolution by growing its Hifyre cannabis consumption technology platform, expanding its Pineapple express delivery service and integrating its wholesale segment and logistics.
High Tide Q2 revenue rose 12% sequentially to C $ 81 million and up 98% from $ 40.9 million a year ago. Chairman and CEO Raj Grover noted that the continued positivity of the company’s EBITDA is a critical point “as we are constantly growing at the same time that many of our publicly and privately listed counterparts are facing challenges fierce and slow down “. The company has 126 stores across Canada and plans to have 150 by the end of the 2022 calendar year.
Offers
Springbig Loyalty and Marketing Platform and Tuatara Capital Acquisitions Corporation completed their previously announced merger in which TCAC has changed its name to SpringBig Holdings, Inc. and began trading on the global Nasdaq market. The company serves more than 1,300 customers with more than 2,400 commercial locations
Tilray Brands says it has revised its agreement with HEXO to improve the terms of its previously published agreements, which include, among other things, an additional discount on the purchase price of Tilray Brands, as well as a reduction in the conversion price according to the HEXO note. . . The deal is expected to close next month. Irwin D. Simon, president and CEO of Tilray Brands, said it will accelerate the company’s operating turnaround and “is an essential next step in improving our capital structure, and we are confident that the synergies made will restore the industry.”
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Sincerely
Alan and Joel
info@newcannabisventures.com
Based in Houston, Alan leverages his experience as the founder of the 420 Investor online community, the first and even largest due diligence platform focused on the stock market shares of the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before focusing on the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as a freelance research analyst after more than two decades in portfolio research and management. . A prolific writer with more than 650 articles published since 2007 in Seeking Alpha, with 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source in the media, such as the NY Times, Wall Street. Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | e-mail
