Tuesday, January 31, 2023
Cannabis News Daily
No Result
View All Result
  • Home
  • Cannabis News
  • Medical Marijuana
  • Legalization
  • Cannabis Business
  • Cannabis Laws
  • Cannabis Retail
No Result
View All Result
  • Home
  • Cannabis News
  • Medical Marijuana
  • Legalization
  • Cannabis Business
  • Cannabis Laws
  • Cannabis Retail
No Result
View All Result
Cannabis News Daily
No Result
View All Result
Home Cannabis Business

Most MSOs Remain Timid Towards the Largest Cannabis Market – New Cannabis Ventures

cannabisnews by cannabisnews
June 6, 2021
in Cannabis Business
0
This Cannabis Catalyst Is Bigger Than We Thought – New Cannabis Ventures
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


You’re reading a copy of this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news.

Friends,

Last week, we discussed how 98% of all cannabis sales in Florida by volume are coming from MSOs. In sharp contrast, they have remained mostly on the sidelines when it comes to what has rapidly developed into the largest legal cannabis market, California. A few have made early moves to have a meaningful presence, but the others have an insignificant position. Here is the positioning in the state of the top 12 MSOs by revenue:

Only three of the largest MSOs have what we consider to be a major focus on the market, while three have none. Of course, several smaller MSOs have a strong focus on California, like MedMen, Plus Products, Hollister Biosciences and Body and Mind, and Planet 13 is set to become an MSO when it opens its dispensary in Orange County on July 1st. There are also several single state operators focused on the market, like The Parent Company, Glass House, Harborside, Lowell Farms, Next Green Wave, Vibe Growth Corporation, Captor Capital and GABY Inc., among others.

We are surprised that several of the largest MSOs haven’t yet taken a more meaningful position in the state. Acquisition prices have seemed rather low. This past week, Harborside indicated that its pending acquisition of Sublime was at 1.7X 2021 projected revenue. Columbia Care has closed two acquisitions in California at low multiples, including Project Cannabis at 1.3X projected 2020 sales last year and a San Diego dispensary at 1.2X projected 2021 sales earlier this year. GABY Inc, described its Mankind dispensary acquisition as being about 1.2X trailing revenue.

California remains a challenging market, but, after a long period of stagnation following the simultaneous rollout of regulated medical and adult-use cannabis in 2018, the revenue growth has really taken off. According to BDSA, sales in April grew 42% from a year ago, the strongest gain to date, as they hit a record $357 million. Here is the annual rate of growth by month:

We remain excited by the prospects for California and continue to expect some of the larger MSOs to get more deeply involved in the state. The pending acquisition of Harvest by Trulieve will leave it with a larger presence, and perhaps it will expand its “Western Hub” to include a greater emphasis California. GTI has been vocal about its reluctance, while Curaleaf appears to be more interested in increasing its exposure. For those investors who want exposure to what many call the largest cannabis market in the world, there are many options, but some are more leveraged than others. There are several pure-plays, some of which could be acquired in the future, and there are a few MSOs with meaningful positions in the state already.


Arizona Market Opportunity for Experienced U.S. Cannabis Producers
This week’s newsletter is sponsored by Cannaspace

Cannaspace partners will need to demonstrate quality control, compliance, and experience in regulated American cannabis production operations. Cannaspace is operated by the expansion-focused iLAVA management group. The group started operations in 2013 and currently runs The Downtown & D2 Dispensary stores and an industrial cultivation & production facility with 200+ employees in Tucson, Arizona.


New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:


To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Get ahead of the crowd! If you are a cannabis investor and find value in our Sunday newsletters, subscribe to 420 Investor, Alan’s comprehensive stock due diligence platform since 2013. Gain immediate access to real-time and in-depth information and market intelligence about the publicly traded cannabis sector, including daily videos, weekly chats, model portfolios, a community forum and much more.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers as well as the American Cannabis Operator Index and the Ancillary Cannabis Index.

View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks that generate industry sales of more than US$12.5M per quarter.

Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.

Sincerely,

Alan & Joel

Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in 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 shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

Get Our Sunday Newsletter




In This Article:

agfy, Agrify, Arizona, California, cannaspace, Canopy Growth, CGC, gnln, greenlane, Harborside, hbor, HBORF, kshb, KushCo Holdings, leaf trade, WEED

Related News:

What’s New With Cannabis Stocks for the Week Ending 06/04/21

Agrify Is Tackling the Tough Challenge of Cultivating Cannabis Consistently

First Quarter Earnings Reports Show Strong and Improving American Cannabis Industry Fundamentals

B2B Software Provider Leaf Trade Leverages Its Illinois Roots to Help the Largest Cannabis Operators Grow






Source link

RELATED POSTS

Will SAFE Banking Act help?

CannaBiz: What it takes to get into the cannabis industry

Continue Reading
ShareTweetPin
cannabisnews

cannabisnews

Related Posts

Will SAFE Banking Act help?

Will SAFE Banking Act help?

by cannabisnews
March 26, 2022
0

Weed dispensaries targeted by robbers: Will SAFE Banking Act help?News Sports Entertainment Life Money Tech Travel OpinionA bill that...

CannaBiz: What it takes to get into the cannabis industry

CannaBiz: What it takes to get into the cannabis industry

by cannabisnews
March 26, 2022
0

“So we were actually, I think, the fourth people to apply for a retail license. I was very much...

Warily, Tribes Prepare for Cannabis Ventures in New Mexico | New Mexico News

Warily, Tribes Prepare for Cannabis Ventures in New Mexico | New Mexico News

by cannabisnews
March 26, 2022
0

By MORGAN LEE, Associated PressSANTA FE, N.M. (AP) — Two tribal communities have been reassured they'll be able to...

Pennsylvania Reverses Decision on CBD Edibles – Cannabis Business Times

Pennsylvania Reverses Decision on CBD Edibles – Cannabis Business Times

by cannabisnews
March 25, 2022
0

Pennsylvania Reverses Decision on CBD Edibles  Cannabis Business Times Source link

States wrestle with chemically made THC

States wrestle with chemically made THC

by cannabisnews
March 25, 2022
0

Over the past few years, Jonny Griffis has invested millions of dollars in his legal marijuana farm in northern...

Next Post
Celebrating ties between California’s cannabis and LGBTQ movements – Orange County Register

Celebrating ties between California’s cannabis and LGBTQ movements – Orange County Register

Cannabis producer HEXO to buy Redecan in $925-million deal

Cannabis producer HEXO to buy Redecan in $925-million deal

RECOMMENDED

Valley News – Column: Small producers deserve direct access to market

Valley News – Column: Small producers deserve direct access to market

March 26, 2022

Decriminalization: The pathway to legalization and cannabis equity | Nikki Fried – South Florida Sun Sentinel

March 26, 2022
  • 22M Fans
  • 121 Followers
  • 650 Followers
  • 23.7k Followers

MOST VIEWED

  • US Hemp and Cannabis Industry Leaders to Participate with Government at Event Celebrating New Legalization In Costa Rica

    US Hemp and Cannabis Industry Leaders to Participate with Government at Event Celebrating New Legalization In Costa Rica

    0 shares
    Share 0 Tweet 0
  • Oklahoma Cannabis Pioneer Joins Forces with Budding Cannabis Brand Ganja Goat Guru

    1 shares
    Share 0 Tweet 0
  • New Jersey Begins Accepting Recreational Cannabis License Applications: When Will Dispensaries Open?

    0 shares
    Share 0 Tweet 0
  • Federal Marijuana Legalization Bill May Receive House Floor Vote Next Week, Sources Say

    0 shares
    Share 0 Tweet 0
  • Legalizing recreational marijuana in Florida

    0 shares
    Share 0 Tweet 0

Recent News

Valley News – Column: Small producers deserve direct access to market

Valley News – Column: Small producers deserve direct access to market

March 26, 2022

Decriminalization: The pathway to legalization and cannabis equity | Nikki Fried – South Florida Sun Sentinel

March 26, 2022
Will SAFE Banking Act help?

Will SAFE Banking Act help?

March 26, 2022

CATEGORY

  • Cannabis Business
  • Cannabis Laws
  • Cannabis News
  • Cannabis Retail
  • Legalization
  • Medical Marijuana

Contact Us

  • Privacy & Policy
  • About Us
  • Contact Us

© 2021 Copyright Cannabis News Daily

No Result
View All Result
  • Home
  • Cannabis News
  • Medical Marijuana
  • Legalization
  • Cannabis Business
  • Cannabis Laws
  • Cannabis Retail

© 2021 Copyright Cannabis News Daily