CANNABIS 2Q23 EARNINGS AND 2023 OUTLOOK: THE STORY IN 33 CHARTS AND 5 TAKEAWAYS

As earnings season comes to a close, we analyze 2Q23 results, management guidance, and CY23 revenue estimates to identify trends that matter most. We present our analysis in 33 charts and 5 takeaways:

–      Takeaway 1: In line quarter but CY23 estimates cut by 1.6%, the eighth consecutive quarterly downgrade. 52% of cannabis companies beat estimates in 2Q23, same as 1Q23 and higher vs. 46% in 4Q22, while overall industry sales came in line with expectations at $5.7 billion. However, pricing pressure (despite initial signs of stability), regulatory uncertainty, and high competitive intensity still weigh on fundamentals as CY23 estimates have been cut by 1.6%, the eighth consecutive quarterly downgrade.

–      Takeaway 2: Weak outlook reflected in stock price reaction (down 3.4% on average one week after earnings) – six of the nine segments finished in the red. Stocks from Medical Cannabis (+1.4%) and Canadian LPs (1.2%) segments outperformed and ended in the green a week after their earnings. Most other segments finished lower thanks to the cut in estimates.

–      Takeaway 3: Canadian LPs and Technology the outperforming segments. Driven by TLRY’s 19.6% beat and 9.0% raise, and better-than-expected performance by CGC and VFF, Canadian LPs beat expectations by a strong 9.2% and saw their CY23 estimates being raised by 3.5%. Technology names showed signs of a turnaround with sales coming in 4.1% ahead of estimates, led by MAPS (6.3% beat) and LFLY (2.8%). Input Materials’ underperformance from the previous quarter continued with across-the-board misses and cuts to estimates. CLVR, DBCCF, CARA stand out among stock-specific beats.

–      Takeaway 4: Smaller U.S. Operators continue outperforming. 74% of U.S. operators beat expectations; however, segment sales came in only 0.9% ahead of expectations and CY23 estimates have been lowered by 1.2%. Most big beats (GLASF, DBCCF, AAWH, GDNSF, FFNTF) and upgrades (DBCCF, GLASF, AAWH, CCHWF, TRSSF) are concentrated among smaller operators, consistent with the trend observed last quarter.

–      Takeaway 5: Valuation remains attractive. At 1.2x CY23E sales, industry valuation remains attractive. U.S. Operators (0.7x) are trading at a discount to industry average and less than half the multiple of Canadian LPs (1.6x). We believe this valuation gap is unsustainable and offers a buying opportunity.

Chart 1: CY23(E) Cannabis Industry Revenue Composition – Before and After 2Q23 Earnings

Source: Intro-act, FactSet. All data is for earnings reported through 8/23.

Chart 2: Stock Prices Closed 3.4% Lower on Average a Week 2Q23 Earnings

Source: Intro-act, FactSet

Chart 3: TLRY and VFF Gained the Most After 2Q23 Earnings; SBIG and MRMD the Biggest Losers

Source: Intro-act, FactSet

Chart 4: Medical Cannabis and U.S. Operators Led 2Q23 Beat Rates; Input Materials The Underperformer …

Source: Intro-act, FactSet

Chart 5: … While Canadian LPs and Technology Names Delivered the Biggest Beats

Source: Intro-act, FactSet

Chart 6: Cannabis Industry’s 2Q23 Was In Line With Expectations

Source: Intro-act, FactSet

Chart 7: Q/Q Sales Growth of Leading U.S. MSOs and Canadian LPs

Source: Intro-act, FactSet

Chart 8: 70% of Cannabis Companies Saw Their CY23 Estimates Lowered After 2Q23 Earnings …

Source: Intro-act, FactSet

Chart 9: … Led by Cuts to Input Materials and CBD/Hemp Names

Source: Intro-act, FactSet

Chart 10: Industry-Wide CY23 Revenue Estimates Have Been Lowered 1.6%

Source: Intro-act, FactSet. All data is for earnings reported through 8/23.

Chart 11: Top 10 2Q23 Beats

Source: Intro-act, FactSet

Chart 12: Top 10 2Q23 Misses

Source: Intro-act, FactSet

Chart 13: Top 10 CY23 Positive Revisions

Source: Intro-act, FactSet

 

Chart 14: Top 10 CY23 Negative Revisions

Source: Intro-act, FactSet

Chart 15: U.S. Operators Are Trading At A Steep Discount to Industry Average

Source: Intro-act, FactSet

SEGMENT ANALYSIS: MOVERS AND SHAKERS

Chart 16: Canadian LPs Beat 2Q23 Expectations by 9.2%; CY23 Estimates Increased by 3.5%

Source: Intro-act, FactSet

Chart 17: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

Chart 18: Canna Finance Firms Missed 2Q23 Expectations by 5.0%; CY23 Estimates Lowered by 2.8%

Source: Intro-act, FactSet

Chart 19: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

Chart 20: Canna Science & Testing Missed 2Q23 Expectations by 2.4%; CY23 Estimates Lowered by 17.2%

Source: Intro-act, FactSet

Chart 21: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

Chart 22: CBD/Hemp Missed 2Q23 Expectations by 19%; CY23 Estimates Cut by 6.8%

Source: Intro-act, FactSet

Chart 23: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

Chart 24: Diversified Missed 2Q23 Expectations by 3.3%; CY23 Estimates Raised by 1.8%

Source: Intro-act, FactSet

Chart 25: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

Chart 26: Input Materials Companies Missed 2Q23 Expectations by 2.8%; CY23 Estimates Lowered by 5.9%

Source: Intro-act, FactSet

Chart 27: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

Chart 28: Medical Cannabis Firms Beat 2Q23 Expectations by 1.7%; CY23 Estimates Raised by 1.3%

Source: Intro-act, FactSet

Chart 29: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

Chart 30: Technology Firms Beat 2Q23 Expectations by 4.1%; CY23 Estimates Lowered by 0.9%

Source: Intro-act, FactSet

Chart 31: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

Chart 32: U.S. Operators Beat 2Q23 Expectations by 0.9%; CY23 Estimates Lowered by 1.2%

Source: Intro-act, FactSet

Chart 33: Key Names Driving 2Q23 Beats/Misses and CY23 Sales Revisions

Source: Intro-act, FactSet

STATE AND REGULATORY NEWS

Ohio officials approve ballot language for marijuana legalization initiative. Ohio officials have unanimously approved ballot language for an initiative to legalize marijuana that will appear before voters on the November election. At a hearing, the Ohio Ballot Board voted 5-0 to adopt a summary that was drafted by the secretary of state’s office, which recently certified that advocates had turned in enough valid signatures to qualify for ballot placement. The board approved the text without discussion. No supporters or opponents testified at the meeting. The text of the approved summary language for the initiative—designated as Issue 2—says the measure would legalize and regulate “the cultivation, processing, sale, purchase, possession, home grow, and use of cannabis by adults at least twenty-one years of age.” Read More (Marijuana Moment)

Ohio governor opposes November ballot measure legalizing adult-use marijuana. Ohio Republican Gov. Mike DeWine is opposing a ballot measure in November that seeks to legalize adult-use marijuana sales in the state. DeWine, who was reelected in 2022, told the Governor’s Executive Workforce Board “it would be a real mistake for us to have recreational marijuana,” according to Columbus TV station WSYX. He made the comments about the Regulate Marijuana Like Alcohol campaign the same day the ballot initiative qualified for the upcoming election. The Ohio ballot initiative’s qualification culminated a yearslong, drawn-out process that included lawsuits and tens of thousands of invalidated signatures. Read More (Marijuana Business Daily)

Only one in 10 Ohio prosecutors say they’ll seal drug records under reform law. As Ohio voters prepare to decide on a marijuana legalization initiative on the November ballot, only about one in 10 Ohio prosecutors say they’re likely to take advantage of a separate recently enacted law that allows them to independently seal the records of people with low-level drug convictions—and most of those say they’d focus on cannabis-related offenses—according to a new study. The survey also asked prosecutors about their reasons for saying they were likely or unlikely to facilitate record sealing. Among the 50 percent who said they likely would not, most said it was because of limited staffing resources (69 percent), followed by a budgetary inability to pay the $50 fee for each application (55 percent). Read More (Marijuana Moment)

Oregon Governor vetoes marijuana state bank bill. Oregon’s governor recently vetoed an effort to create a state bank for marijuana businesses, in another blow to the struggling industry. The lack of consistent, equitable access to banking has been recurring issue for Oregon marijuana businesses and those in other states. This legislative session, Oregon considered creating a State Public Bank Task Force in HB 2673. The bill directed the task force to study and make recommendations concerning the establishment of a public state bank. The bill expressly directed the task force to investigate the provision of financial services for cannabis businesses. Read More (Marijuana Retail Report)

Cannabis decriminalization gains momentum amidst state stalemate. Texas cities are one by one decriminalizing cannabis after state Senate members failed to enact the policy change refused to consider a House-passed measure to decriminalize marijuana, streamline expungements and allow doctors to recommend medical cannabis instead of opioids to patients with chronic pain. They officially killed the bill and push to enact the policy change in May. Now, Lubbock, in north east Texas, is poised to become the seventh city to decriminalize local low-level marijuana offenses, joining cities like Denton, San Marcos, Killeen, Elgin and Harker Heights, to name a few. Read More (The Dales Report)

Nevada's cannabis industry takes another step forward. Four significant bills that will undoubtedly impact cannabis regulation in Nevada were recently signed into law by Nevada State Governor Joe Lombardo. The legislation makes a series of amendments to the state's existing cannabis laws, including minimizing penalties and fees, reforming sales tax law, doubling the legal personal possession limit, consolidating licensing rules, and enabling participation in the market by people with prior felony convictions. 1) SB 195 – Penalties and Fees, 2) AB 430 – Cannabis Sales Tax, 3) SB 277 – License Consolidation, and 4) SB 328 – Unlicensed Cannabis Activities. Read More (Mondaq)

GOP Congressman threatens Indian tribe with loss of federal funding over marijuana legalization. In an op-ed published in The Cherokee One Feather, Rep. Chuck Edwards (R-NC) acknowledged that Congress cannot stop the EBCI referendum, set for September 7, from going forward. But he appealed to the tribe’s members to vote against it. A Republican congressman from North Carolina is urging members of the Eastern Band of Cherokee Indians (EBCI) to reject a referendum next month that would legalize marijuana on tribal land, warning that the move would mean a loss of federal funding under a bill he plans to introduce. Read More (Marijuana Retail Report)

Maine asks DOJ to halt alleged illicit Chinese marijuana grows. Maine’s congressional delegation formally urged the U.S. Department of Justice to shut down a suspected statewide ring of illegal marijuana grows that’s allegedly connected to Chinese nationals. According to the Bangor Daily News, U.S. Sens. Susan Collins, a Republican, and Angus King, an independent, and Democratic Reps. Chellie Pingree and Jared Golden asked U.S. Attorney General Merrick Garland in a letter for federal law enforcement to further investigate the situation. The delegation’s concern stems from a report by the Daily Caller News Foundation that a July federal memo the organization obtained tallied at least 270 properties across Maine that could be “used for Chinese illegal marijuana grow operations.” Read More (Marijuana Business Daily)

Eight states projected to be billion-dollar cannabis markets in 2023. In 2023, there are eight adult-use cannabis states that are projected to eclipse the $1-billion benchmark in total retail sales from their respective markets. While dispensary sales in mature markets like California, Colorado and Washington remain comfortably in the 10-figure range this year despite falling trends, shrinking numbers in Oregon and Nevada means the billion-dollar ranks are now a little less crowded. Combined, these eight states’ 2023 cannabis sales estimates are projected to eclipse $17 billion, or nearly 60% of the nationwide total, yet they represent less than 30% of the U.S. population. Read More (Cannabis Business Times)

Chart 34: 2023 Billion Dollar Cannabis Markets

Source: Intro-act, Cannabis Business Times

NYC could see $1.2 billion in marijuana sales annually. New York City could eventually see marijuana sales reach up to $1.2 billion annually, resulting in about $47 million in local tax revenue, a new report from a government-funded independent economic agency found. With an abundance of unlicensed retailers still operating in the city and lawsuits hamstringing regulators’ ability to expand the legal market, certain factors will need to change in order for New York’s cannabis industry to reach its full economic potential, the New York City Independent Budget Office (IBO) says. There are different projections for what can be expected over the next few years, but the city Office of Management & Budget (OMB) estimates that, by the 2027 fiscal year, the market will be producing $38 million in marijuana tax revenue annually, which translates into about $950 million in sales. Read More (Marijuana Moment) and More (Headset)

Minnesota collects about $600,000 in taxes from first month of THC tax. Minnesota collected nearly $600,000 in tax revenues from cannabis-infused gummies and drinks in July 2023, according to state Department of Revenue data outlined by CBS News. The agency indicated it had received more than $594,000 from 571 businesses from July sales of cannabis products, which includes hemp-derived products that contain THC sold at retailers throughout the state. If the early figures are any indication of the state market, annual sales of the products could surpass $70 million, amounting to $7 million annually in tax revenues for the state. Adult-use products are not yet available in the state and might not be for at least a year, according to MPR News. Read More (Ganjapreneur)

Does anyone know how much marijuana is grown in California? For in excess of the past year, falling wholesale prices and a generally tough market have yielded reports of cultivators pulling back production or exiting California’s legal cannabis market. Licensing statistics bear out such reports – at least to some extent. From the start of 2022 to this week, the number of active cultivation licenses of all types has decreased by about 28%, from 8,380 (as reported by the North Bay Business Journal) to 6,065, according to an August 17 consultation of the state’s license search tool. While there has clearly been attrition in the number of cultivation licenses, the actual impact on California’s licensed cannabis production capacity is unfortunately impossible to quantify based on the above numbers. Read More (Cannabis Benchmarks)

California cities, counties cut marijuana taxes to aid struggling companies. At least 14 cities and counties in the state – including key consumer markets such as Los Angeles and San Francisco as well as less-populated, production-focused areas like Calaveras and Humboldt counties – have reduced or eliminated local sales, business or cultivation taxes over the past year, according to research compiled by Hirsh Jain of Ananda Strategy, a Los Angeles-based consultancy. Cannabis sales in California are subject to a 15% state excise tax as well as state sales taxes, which range from 7.25% to as high as 10.75% in some areas. That’s on top of any local taxes that cities and counties might choose to impose. The tax cuts are welcome but limited relief for a struggling industry desperate to stay afloat amid familiar pressures. Read More (Marijuana Business Daily)

Audit finds Michigan’s marijuana regulators are falling behind on disciplinary action for business violations. An audit marked Michigan’s Cannabis Regulatory Agency (CRA) with one “material condition”—the most severe ranking. The CRA administers the state’s cannabis programs, including licensing, inspection, investigation and enforcement for growing, processing, testing and selling cannabis. The Office of the Auditor General found the CRA “averaged 196 days and took up to 757 days to complete disciplinary action for 123 formal complaints involving licensee violations.” The audit found CRA didn’t complete disciplinary action for “555 formal complaints with violations that, as of September 30, 2022, had been open an average of 529 days.” Read More (Marijuana Moment)

New Mexico taps Colorado industry insider as new top cannabis regulator. New Mexico’s marijuana regulatory authority has selected Todd Stevens, a veteran of Colorado’s Native Roots Cannabis Co., to serve as the state’s MJ chief. Stevens served as a manager at Native Roots since 2015, most recently acting as the company’s head of training and development, according to the release. Stevens’ “experience as an industry leader made him the ideal candidate to take the lead” at the Cannabis Control Division (CCD) of New Mexico’s Regulation and Licensing Department, the agency’s superintendent, Linda Trujillo, said in a news release. She added: “I am confident in his ability to lead this team and make New Mexico’s regulated cannabis industry one to rival.” Read More (Marijuana Business Daily)

New Missouri cannabis rules require testing labs to double-check each other’s work. New rules implemented in Missouri allow regulators to instruct the state’s certified cannabis testing laboratories to double check the work of other labs – an effort to cut down on so-called ‘lab shopping,’ the Missouri Independent reports. Under the regulations, the state will, up to 10 times a year, instruct labs to test cannabis samples tested by another lab. Then the state will review the test results to make sure they have similar results in THC potency, and that one lab isn’t passing a sample for pesticide residue while another one is failing it. In an interview with the Independent, Anthony David, owner and COO of Green Precision Analytics Inc., pushed back on the rule, arguing that by gathering 10 tests a year for 10 labs – 100 total samples – is “nowhere even close to enough data to know whether someone is an outlier, or whether they’re testing in regulation.” Read More (Ganjapreneur)

Why does weed still cost so much? For some reason, the $40 threshold is a concrete benchmark resistant even to inflation, and a mark that retailers across the country recognize as meaningful for consumers. If a $4800 pound was cut into $60 eighths, and an $800 pound is cut into $30 eighths today, where’s the rest of the money going? The below graphic made waves when Sol Spirit Farms posted it in December 2021. It resonated because it’s more or less accurate: In some markets, particularly California’s, consumers spending $40 for an eighth are spending a lot of their money—maybe even half—on taxes and over-regulation. Read More (CannbisNow)

Chart 35: Breakup of a Price Paid to Buy 1/8th of an Ounce Weed from the Legal Market in California

Source: Intro-act, Sol Spirit Farms, CannbisNow

Another New Jersey police officer fired over marijuana must be reinstated, Judge rules. A New Jersey administrative law judge has dealt another blow to Jersey City’s police chief and mayor, ordering the reinstatement of another officer who was fired after testing positive for marijuana despite state constitutional protections. The Jersey City Police Department has contested the state’s policy permitting off-duty cannabis use, including by law enforcement, and has fired several officers due to positive THC metabolite tests. But now two administrative law judges, as well as the Civil Service Commission (CSC), have overruled the department, upholding the constitutional protections that were enshrined under the state’s marijuana legalization law in 2021. Read More (Marijuana Moment)

Religious leaders ask Federal court to keep drug overdose prevention center lawsuit alive. A coalition of religious leaders has come out in support of a Philadelphia-based nonprofit that’s seeking to establish a safe drug consumption facility, asking a federal court to reject the federal government’s request to dismiss a lawsuit about the harm reduction effort. In an amicus filed with the U.S. District Court for the Eastern District of Pennsylvania, 35 Christian and Jewish faith leaders from 19 states asserted that the nonprofit Safehouse should be allowed to open an overdose prevention site as a religious right. Read More (Marijuana Moment)

U.S. cannabis spot index increased 1.3% to $977 per pound; September 2024 implied forward assessed down $15 to close at $960 per pound. The U.S. Spot wholesale flower price ticked up for the second straight week as it works to shake free of a downtrend that gripped it from the beginning of June into early August. The increase in the composite price was due primarily to a rise in the price for indoor flower. Outdoor and greenhouse product prices displayed marginal increases, but were essentially flat week-on-week. Both have been sliding after trending upward for roughly the first half of this year. At $960 per pound, the September 2023 implied forward represents a discount of 1.7% relative to the current U.S. spot price of $977 per pound. Read More (Cannabis Benchmarks)

Canadian recreational cannabis sales jump 12% in June to CAD $426 million. Sales of Canadian recreational cannabis jumped to CAD$ 426.6 million in June ($316.7 million), a year-over-year increase of 12%. It’s also the fourth straight month that Canada’s sales exceeded CAD $400 million, according to the latest retail sales data by Statistics Canada. Through the first six months of 2023, CAD $2.4 billion worth of cannabis has been sold in Canada, which is 9% higher than the first half of 2022. Ontario, British Columbia and Alberta continued to power most of the sector’s growth, while the province of Quebec had the slowest growth in the country. Ontario’s sales in June 2023 were CAD $167.8 million, up 9.9% compared to June 2022. Alberta had the second-highest sales. Read More (Marijuana Business Daily)

Canada’s cannabis fees contribute to profitability challenges, report says. Fees charged to cannabis businesses by the Canadian government are contributing to challenges in achieving profitability and positive cash flow, according to a “cost recovery” analysis published by the federal regulator, and some of the fees disproportionally affect smaller businesses. The annual regulatory fee accounted for 91% of all cannabis fee revenue collected by Health Canada in that time period. The report found that 37.5% of micro license holders reported that fees accounted for more than 10% of operating costs. For standard license holders, 20.5% said fees accounted for more than 10% of operating costs. The report acknowledges: “Fees collected (by the federal government) can impact smaller (cannabis) operations more than their larger competitors due to economies of scale.” Read More (Marijuana Business Daily)

COMPANY NEWS

Greenlight acquires assets in NV & WV, pays dividend. Greenlight is acquiring a dispensary in Las Vegas and a cultivation facility in West Virginia for an undisclosed sum as well as issuing another dividend. The Las Vegas acquisition is an “operating recreational and medical dispensary.” according to a news release from Greenlight. The cultivation facility in Buckhannon, West Virginia, is 18,000 square feet and makes Greenlight vertically integrated in that state. The privately held company did not release the price of the acquisitions. Greenlight also issued a “third consecutive quarterly dividend” to shareholders, a rarity in the cannabis industry. Read More (Marijuana Business Daily)

Former CEO, Canadian Prime Minister exit board of Acreage. Former CEO Kevin Murphy and ex-Canadian Prime Minister Brian Mulroney have resigned from the board of directors of New York-based marijuana multistate operator Acreage Holdings. In an August 4 filing with the U.S. Securities and Exchange Commission, the company said neither resignation was the result of a disagreement with Acreage “on any matter relating to the company’s operations, policies or practices.” In June, Acreage streamlined its board to prepare for the company’s acquisition by Canopy USA, the American arm of Canadian producer Canopy Growth. Read More (Marijuana Business Daily)

Change at the top of cannabis producer Pure Sunfarms as Dosanjh departs. Mandesh Dosanjh stepped down as president and CEO of Pure Sunfarms. Orville Bovenschen has been appointed as the company’s new president, parent company Village Farms International announced in a news release. Donsanjh “will move into a strategic advisory position for a transitional 90-day period.” Bovenschen joined Village Farms in 2021 as vice president of European business development and operations and was appointed Pure Sunfarms’ chief operating officer in 2022. According to the Village Farms release: “He also formerly held several senior roles in cannabis, during which, among other things, he oversaw innovation and new product launches.” Read More (Marijuana Business Daily)

FIKA Cannabis wins Fire & Flower auction. FIKA Cannabis won a recent auction for retailer Fire & Flower Holdings. The companies have entered into a subscription agreement with a September 8, 2023 closing date, subject to court approval, according to a news release from Fire & Flower. The Fire & Flower assets to be acquired by FIKA and the value of the bid were not disclosed. The company says it, “intends to appear before the Court as soon as possible to seek an order approving the transactions contemplated by the Subscription Agreement.” In the same news release, Fire & Flower also announced that John Chou has resigned as Chief Financial Officer and John Rim has been appointed Interim CFO. Read More (Cannabis Retailer)

Court OKs stalking-horse bid for distressed Aleafia. Red White & Bloom’s plan to acquire distressed Aleafia Health is back on the table. The Ontario Superior Court of Justice approved the MSO’s stalking-horse bid for Aleafia, according to a news release. Aleafia Health filed for creditor protection in July after a merger between the two companies failed. The deal includes asset purchases and a share subscription agreement if Red White & Bloom is the successful bidder – which is not guaranteed. The agreement also include a release of all outstanding amounts and obligations payable by the Aleafia Group under the loan agreement made as of December 24, 2021, and all related loan and security documentation, which amounts to more than $15 million. Read More (Marijuana Business Daily)

German cannabis group SynBiotic announces new acquisition, investment and CEO. SynBiotic announced that CannaCare Health GmbH and its popular CBD brand Canobo have now become the latest additions to its growing portfolio. The deal will see SynBiotic acquire a ‘majority stake’ in CannaCare Health, which was co-founded by German media entrepreneur Frank Otto. As part of the deal, Mr Otto has invested €3 million in SynBiotic ‘through an extensive share package’, and a vote will be held at the company’s next board meeting to admit Mr Otto to the company’s board of directors. Mr Otto made his name founding and building TV and radio stations, and was credited, alongside Time Warner and Sony, with creating VIVA Music television, which was later bought out by MTV. He was also involved in founding OK Radio, Delta Radio, and Kiss FM Berlin. Read More (Business of Cannabis)

CAPITAL MARKETS

How capital intensive is cannabis? The chart explores the capital intensity of cannabis compared to four other industries thought to be likely suitors for cannabis companies upon federal legalization: Tobacco, Alcoholic Beverages, Pharmaceuticals, and Consumer Products. The chart shows that cannabis is the most capital-intensive of the industries shown. Cannabis capital intensity is related to federal illegality. Cannabis companies must cultivate cannabis in each state where they sell the product, an economically inefficient practice. Post-legalization, we would expect a more centralized or at least regionalized structure to develop. Similarly, cannabis companies are forced to maintain duplicate managerial and operations functions that would be eliminated in an interstate commerce environment. Read More (Viridian Capital Advisors)

Chart 36: Next Twelve Month Sales/ Invested Capital

Source: Intro-act, Viridian Capital Advisors, FactSet, Company Filings

Nasdaq warns cannabis tech firm Agrify of noncompliance again. Agrify received another warning from the Nasdaq stock exchange after the company failed to file its quarterly 10-Q report on time. The warning won’t have an immediate effect on the company’s listing, according to a news release from the company. If Agrify doesn’t regain compliance, however, it risks being delisted from the Nasdaq. The company has already received two other warnings this year after failing to file full-year and first-quarter results. The reporting delay is due to accounting errors identified in three previously issued reports, Agrify said in the release. Read More (Marijuana Business Daily)

Pharma industry showing ‘Growing Interest’ in cannabis as M&A activity increases. According to Prohibition Partners, due to Pfizer’s ‘considerable amount of funds for the R&D of novel therapies’, industry could soon see ‘significant developments in new cannabinoid therapies by the company’. It said: “These major acquisitions of large non-cannabis-specific pharmaceutical players highlight the growing interest and the overall approval of cannabinoids as viable treatments within the industry.” And further added: “In the near future, it is possible that there will be an increase of acquisitions in the sector by large pharmaceutical players, as more information, research and clinical trials confirm the medicinal properties and marketability of cannabinoid-based therapies.” Read More (Business of Cannabis)

Akanda pays off Halo loans with stock. According to an SEC notification published on August 18, Akanda borrowed $328,000 from Halo on January 26, 2023. The loan had an interest rate of 7% per annum and had a maturity date of June 25, 2023, with any overdue amount accruing a further interest rate of 1.25%. A month after the maturity date, the companies agreed to settle the debt by converting $360,960 of the total remaining outstanding balance, including accrued interest… into common shares of the company at $0.62 per share’, representing 581,193 shares. News that Akanda had failed to make its repayment deadline, and has resorted to settling the debt via offering shares has further driven speculation of the company’s financial situation among its investors. Read More (Business of Cannabis)

Chart 37: Akanda Price Performance

Source: Intro-act, Business of Cannabis

Pharma C receives £30,000 fine for aquis rule breaches. The Aquis-listed cannabis investment vehicle Pharma C, was fined £30,000 by the exchange following a disciplinary investigation. On August 23, Pharma C also reportedly received a written ‘requisition request’ from one of its shareholders, which could see the company forced to hold a general meeting if its lawyers determine the ‘validity of this requisition request’. According to the disciplinary decision notice, Pharma C is now required to pay £15,000 immediately to the exchange, and a further £15,000 if they fail to follow the rules of the exchange over the next year. Read More (Business of Cannabis)

Financial strategies in cannabis. As the industry continues to flourish, businesses in this sector are seeking effective financial strategies in cannabis to unlock growth and seize opportunities. For startup cannabis businesses, securing funding is often the first and most critical step toward growth. Traditional financing options may be limited, but alternative sources of capital are emerging. Private investors, including angel investors and venture capitalists, are increasingly interested in the cannabis sector. Another financing option gaining popularity is crowdfunding. Additionally, cannabis businesses can explore debt financing options such as asset-based loans or equipment financing. These types of loans use the business’s assets as collateral, providing the lender with security and allowing the company to access capital for operational needs. Read More (Cannabis Tech)

Wall Street loses its cannabis buzz. Before the COVID-19 pandemic, Wall Street was salivating at the cannabis industry. Seemingly every cannabis company was going public, whether it should or not. Investment bankers were happily signing big checks and crowing about the green rush. The requisite puns were consistently bad whether it was an industry “growing like a weed” or “pot stocks are lit.” Now, however, it seems cannabis has lost its buzz for Wall Street. Major Wall Street firms cut equity analysts, and banking dollars dried up as stock valuations have been mired in a two-year bear market. Read More (Green Market Report)

MEDICAL CANNABIS

Mississippi’s medical cannabis sales eclipse $4.4 million in July. Medical cannabis retailers in Mississippi sold $4.4 million worth of products in July, up 15.3% from June, according to state data provided to MJBizDaily. The July total – $4,429,093 – marked the sixth straight month of increased sales since the state launched medical marijuana retail in late January, Department of Revenue statistics show. Mississippi regulators and state agencies have yet to release monthly sales figures publicly, but an official told MJBizDaily they will at some point. Since the medical marijuana program started in Mississippi, retailers have sold $15,718,622 worth of products. Read More (Marijuana Business Daily)

Alabama Judge rejects medical marijuana officials’ request to delay lawsuit. A Montgomery County Circuit Judge dismissed a motion from the Alabama Medical Cannabis Commission (AMCC) to lift a temporary restraining order and postpone preliminary hearing on AMCC’s alleged Open Meetings Act violations. Judge James Anderson did not provide reasons for dismissing the motion but said to the defendant and plaintiffs that if there is “anything y’all can agree on,” to let him know before the next hearing. Anderson then ended the hearing and walked away. William Webster, legal counsel for the AMCC, claimed in a motion to postpone the hearing that they could potentially address criticism the commission has faced at the next commission meeting, by voiding and re-awarding licenses a third time without going into an executive session. Read More (Marijuana Moment)

Cannabis doesn’t increase heart attack risk. The new study, “Associations Between Monthly Cannabis Use and Myocardial Infarction in Middle-Aged Adults: NHANES 2009 to 2018,” was published on August 7 in the peer-reviewed American Journal of Cardiology, found that a history of cannabis use over the previous year was not associated with an elevated risk of myocardial infarction (MI) among a nationally representative study of nearly 10,000 adults aged 35 to 59. Additionally, study participants who reported using cannabis in the month before experiencing an MI, also commonly known as a heart attack, showed a lower risk compared to participants who had not used cannabis recently. Read More (CannabisNow)

Patients say marijuana treats neuropathy just as well as opioids, and most report using high-THC cannabis. Marijuana is just as effective at treating symptoms of neuropathy as opioids are, according to the results of a new survey. And what’s more, the majority of patients with the often-painful condition say they’re using cannabis with more than 20 percent THC, raising questions about the quality of prior studies that relied on government-grown marijuana that is generally lower in potency. The results, which were shared exclusively with Marijuana Moment, showed clear signs of relief. “The average pain level before cannabis use was 7.64, while the average pain level after cannabis use was 3.44,” the study found. Read More (Marijuana Moment)

CBD/HEMP

Canadian cannabis companies back off from U.S. hemp CBD market. Canopy Growth owned a hemp farm in Springfield, New York, and planned to build a $150 million industrial park in Kirkwood, New York, to produce hemp products. Aurora Cannabis bought Reliva – a producer of hemp-derived CBD products – in a $40 million deal that included potential earnouts. And Cronos Group spent hundreds of millions of dollars to acquire the Lord Jones hemp CBD brand. The purchases came after the passage of the 2018 U.S. Farm Bill that legalized low-THC hemp, including hemp-derived CBD. Now, after investor exuberance about the cannabis sector has largely worn off, several Canadian marijuana companies have retreated in one way or another from the hemp-derived CBD market. Read More (Marijuana Business Daily)

RETAIL

Nevada regulators approve more marijuana consumption lounges. The Cannabis Compliance Board (CCB) unanimously approved applications from Deep Roots Harvest and Global Harmony, which operate Las Vegas cannabis stores, as well as KV Group in the southern Nevada town Pahrump. The decision came after operators and other stakeholders raised concerns that the upfront investment and ongoing operational energy costs of running such ventilation systems could cost more than $100,000, rendering consumption areas economically unfeasible for most operators and a near impossibility for social equity licensees, cannabis insiders told MJBizDaily. Read More (Marijuana Business Daily)

New York court keeps order blocking new adult-use cannabis retail licenses. The court order blocking new entries into New York’s struggling adult-use cannabis market remained in force after a hearing in Ulster County Supreme Court – despite a new appeal filed by the state attorney general to lift the stay. However, 30 applicants who filed for their permits in time might be able to open for business. Several hundred more would-be recreational marijuana entrepreneurs, including both small businesses and major multistate marijuana operators, must wait at least a few more weeks to see how an ongoing legal challenge to the state’s Conditional Adult Use Recreational Dispensary (CAURD) program plays out. Read More (Marijuana Business Daily)

St. Louis, Missouri officials considering allowing cannabis lounges. St. Louis, Missouri officials are considering allowing the operation of cannabis lounges, the St. Louis Post-Dispatch reports. Under the plan, patrons could smoke cannabis and eat cannabis products on-site. Green and a spokesman for Mayor Tishaura O. Jones indicated they are working through clean air health concerns and distance requirements from places such as schools, childcare centers, and places of worship – requirements included for cannabis businesses under state law. Read More (Ganjapreneur)

INTERNATIONAL

Cannabis Social Clubs (CSC) boom in Germany. The response to Germany’s intentions to legalize cannabis has been overwhelmingly positive, prompting the establishment of numerous Cannabis Social Clubs (CSC) throughout the country. These clubs, which are intended to serve as centres for responsible cannabis growing and distribution, have seen a surge in membership applications; some have even reached capacity before cannabis was officially legalized. The CSC phenomenon is a reflection of the shifting views on cannabis and the possible social and economic advantages of its legalisation. Read More (CannabisEU)

Traceability & transparency for Zurich’s cannabis pilot project “ZüriCan”. The city of Zurich has marked a significant milestone with the official launch of its Cannabis Pilot Trials “ZüriCan”. These trials represent a further development in the legalization and regulation of cannabis in Switzerland. The Swiss Company Vigia AG, a frontrunner in the cannabis industry and provider of track & trace software for the cultivation, manufacturing and distribution of cannabis, has developed the Cannabis Dispensary System in partnership with the Federal Office of Public Health (FOPH) in order to reliably document the dispensing of the products. Read More (Business of Cannabis)

Bahamas government unveils proposal to legalize marijuana for medical, religious and scientific use. Top officials in the Bahamas have announced a legislative package that would legalize marijuana for medical, religious and research purposes. Personal possession of small amounts of cannabis would also be decriminalized, and past convictions for simple possession would be expunged. Together, the suite of bills would establish a local framework for marijuana production and, according to the government, “ensure a well-regulated, safe and controlled cannabis industry.” Attorney General Ryan Pinder and Health and Wellness Minister Michael Darville announced the proposed reforms during the Office of the Prime Minister’s weekly press briefing. Read More (Marijuana Moment)

TECHNOLOGY

Five cannabis lighting tips to optimize growth. Lights and other equipment to power indoor grows, including HVAC systems and automated fertigation, have come a long way. Five cannabis lightning tips to optimize growth includes: 1) Start with the best technology from buildout. If retrofitting, consider lights that can accommodate the grow’s current systems. 2) When selecting and phenohunting genetics, use the same lights in R&D. 3) Invest in lights that are flexible and can accommodate different heights and racking systems. 4) Monitor PAR daily to optimize growth. 5) Continue to question best practices in lighting—and all aspects of cultivation. Read More (Cannabis Business Times)

LEGAL & IP

Verano Holdings sues over lost medical marijuana license in Alabama. Verano Holdings filed a lawsuit against the Alabama Medical Cannabis Commission, less than two weeks after the agency revoked a business license it had initially awarded the marijuana multistate operator. Verano is the second company to sue the agency over the state’s medical marijuana licensing process. The Alabama Medical Cannabis Commission (AMCC) awarded an initial 21 cannabis business licenses in June. But the agency reversed that licensing round – and was sued – after finding “potential inconsistencies” in how the University of South Alabama evaluated those business license applications. Read More (Marijuana Business Daily)

Connecticut lawsuit aims to shut down all legal cannabis programs in the state. A legal case has been initiated against the Stamford Zoning Board, aiming to exert control over Connecticut's emerging cannabis sector. In addition to addressing city-specific regulations, the lawsuit, which portrays the state's Social Equity Council as a questionable initiative, holds the potential for far-reaching implications across the state. By contesting the law that legalizes the possession and commercial trade of cannabis in Connecticut, the lawsuit argues that this law runs afoul of the federal Controlled Substances Act. Read More (Cannbis.net)

Canadian cannabis firms increasingly flag rivals over alleged misdeeds. More Canadian cannabis operators than ever are lodging complaints against rival businesses over alleged transgressions or other concerns, a phenomenon being driven by intense competition and desperate companies looking for any edge they can get, according to experts. Last year, there were 706 such complaints from regulated cannabis businesses about other regulated operators, Canada’s federal cannabis regulator told MJBizDaily. That’s a substantial increase from 2021, when 214 complaints were filed, and 2020, in which there were 182 complaints, according to the Health Canada data. Health Canada notes that Canadians may report concerns through an online form that the regulator uses to collect complaints. Read More (Marijuana Business Daily)

SEC sues Northern California investment firm with ties to cannabis. The U.S. Securities and Exchange Commission has filed a new legal action against a small investment firm based in Humboldt County, California, that has ties to the local cannabis industry and is accused of breaching fiduciary duties to its shareholders. The suit, which was filed August 1 in U.S. District Court in the Northern District of California against Sisu Capital, a small family investment firm based in Arcata, California, alleges that Timothy Overturf incorporated and led Sisu Capital after turning 18 in 2013, while his father, Hansueli, was serving a suspension as an investment adviser. Read More (Marijuana Retail Report)

Trulieve Cannabis, Maryland town going to mediation in profit dispute. The Maryland town of Hancock and Trulieve Cannabis are locked in a dispute over how much money the marijuana multistate operator owes the municipality as part of a unique deal that dates to 2015. The town, which has nonparticipating equity in Trulieve, alleges it is entitled to higher payouts and an inside view of company profits in Maryland’s newly launched adult-use cannabis market, The Washington Post reported. Trulieve and Hancock, population 1,500, are set for mediation on August 30, according to the newspaper. Grappling with poverty and high unemployment, Hancock officials agreed to allow the company Harvest to open a medical cannabis cultivation and processing facility in the town in exchange for 4.99% equity in the business in 2015. Read More (Marijuana Business Daily)

Pennsylvania vape shop sues county after hemp-derived cannabis products seized without warrant. The lawsuit by Smooth Vape, LLC names District Attorney Heather Adams, a lieutenant with the Lancaster County Drug Task Force (LCDTF), three unnamed members of the LCDTF, and Lancaster County itself. The lawsuit alleges that Adams ordered the LCDTF to carry out raids on smoke shops and vape shops and that four members of the LCDTF entered the Smooth Vape shop and produced a memo – not a search warrant – from Adams declaring that the officers would be seizing “all products in plain view labeled or advertised as containing Delta-8 THC or Delta-10 THC.” Read More (Ganjapreneur)

California probes alleged fake union at Jay Z-linked marijuana company. California labor regulators are investigating another complaint involving an alleged “fake union” that’s signing required labor agreements with regulated marijuana companies in violation of state law. According to a complaint from the International Brotherhood of Teamsters filed July 26 at the state Agricultural Labor Relations Board, an organization called the National Agricultural Workers Union – which signed labor peace agreements with licensees doing business under the Caliva brand name – is in fact a sham union with no members and no intent of organizing workers. Caliva is a property of The Parent Co., whose investors include billionaire entrepreneur and hip-hop mogul Sean Carter, better known as Jay-Z. Read More (Marijuana Business Daily)

SOCIAL

Text messaging provider Twilio cuts service to cannabis industry. Twilio is prohibiting cannabis companies from using its software to reach customers, MJBizDaily has confirmed. The company provides a communications platform and software that helps companies talk to their customers via text, voice and video. A company spokesperson told MJBizDaily the sale or promotion of cannabis via Twilio’s platform violates “long-standing” policies put in place to comply with federal law. However, according to the company’s list of restricted-use cases, marijuana, CBD and accessory-products companies are prohibited from utilizing its SMS or MMS text messaging in the U.S. or Canada, “regardless of the federal or state legality.” Read More (Marijuana Business Daily)

World anti-doping agency cannabis position remains unchanged. At the World Anti-Doping Agency’s (WADA) recent meeting, the organization’s Executive Committee discussed priorities, decisions and recommendations, including the topic of THC and cannabis use by athletes. In September 2021, due to requests from a few stakeholders, the committee decided to start reviewing the status of cannabis and THC’s effects on sports based on three criteria: It has the potential to enhance sport performance; It represents a health risk to the athlete; and It violates the spirit of sport (as defined by the Code). Read More (Marijuana Business Daily)

St. Cloud University partners with Green Flower on cannabis education program. Minnesota’s St. Cloud State University (SCSU) is the latest college to partner with cannabis education company Green Flower to offer a certificate-based cannabis education program, KNSI reports. The university is the first in the state to offer a cannabis curriculum. Minnesota’s legislature-approved adult-use cannabis program took effect August 1. In a statement, SCSU President Robbyn Wacker said the endeavor is designed to “meet workforce demand to provide educated professionals in this quickly evolving industry.” The courses take about six months to complete and include: Cannabis Agriculture and Horticulture, Compliance and Risk Management, the Business of Cannabis, and Cannabis Healthcare and Medicine. Read More (Ganjapreneur)

Cannabis use at all-time-high in U.S., finds NIH survey. Cannabis and hallucinogens are more popular than ever in the US, according to an ongoing National Institutes of Health (NIH) survey. Among adults aged between 19 and 30, past-year cannabis use was reported by approximately 44% of those surveyed in 2022, an increase from 35% of those surveyed in 2017 and the 28% surveyed in 2012. Hallucinogens (such as LSD and psilocybin) aren’t quite as sought-after, but their appeal has been slowly rising. Among the same age group, 8% of adults reported past-year use of such substances, a jump from 5% of adults surveyed in 2017 and the 3% surveyed in 2012. Nora Volkow, director of the National Institute on Drug Abuse – which funded the survey – said in a statement published in August 17: “Substance use is not limited to teens and young adults, and these data help us understand how people use drugs across the lifespan,” Read More (Analytical Cannabis)

Chart 38: Marijuana Trends in 12-Month Prevalence Among Respondents of Modal Ages 19 Through 50

Source: Intro-act, NIH, Analytical cannabis

 

Chart 39: Legal Cannabis Sales Growth: Scenario A Vs. Scenario B

Source: Intro-act, New Frontier Data

 

THCX The Cannabis ETF (NYSEARCA: THCX)

Closing Price (8/25/23)	$16.67	1 Week NAV Change	0.73 (4.20%)	NAV Change (YTD)	-34.54%
AUM (as of 8/25/23)	$14.19 Mn	Fund Inception	7/8/2019	Expense Ratio	0.75%

 

THCX: the pure-play ETF solution for investing in cannabis. Supported by favorable regulatory trends, increasing use cases and growing public acceptance, cannabis is one of the fastest growing current investment themes. To put the opportunity into perspective, the global cannabis market is estimated to reach $630 billion by 2040. THCX was constructed to make investing in cannabis easier by helping investors get exposure to a basket of stocks that are expected to benefit from growth of the hemp and legal marijuana industries. THCX is a fund focusing mainly on North American cannabis companies, specifically in the U.S. and Canada. The initial universe of Index constituents consists of publicly listed Cannabis Companies that are involved in the legal cannabis industry. “Cannabis” is defined as (i) marijuana (or products derived from marijuana) and (ii) hemp (or products derived from hemp, which includes CBD-based products (i.e., products that contain cannabidiol).

Monthly Market Performance (Month Ending 7/31/2023)

One Month	Three Months	YTD	One Year	Inception
11.11%	-6.40%	-27.87%	-50.39%	-91.55%

Quarterly Market Performance (Quarter Ending 6/30/2023)

One Month	Three Months	YTD	One Year	Inception
-0.58%	-20.47%	-33.98%	-53.17%	-92.39%

Top 10 Holdings (updated as of 8/25/23)

Ticker	CUSIP	Company	% of Fund	Quantity
IIPR	45781V101	Innovative Industrial Properties	8.07%	14,625
AFCG	00109K105	AFC Gamma Inc	7.81%	83,484
CRDL	14161Y200	Cardiol Therapeutics Inc/CAD/	6.25%	8,73,468
TLRY	88688T100	Tilray Brands Inc	6.16%	3,64,825
VFF	92707Y108	Village Farms International	6.05%	11,07,134
MAPS	92971A109	WM Technology Inc	5.73%	6,73,366
SMG	810186106	Scotts Miracle-Gro Co	5.53%	14,861
CRON	22717L101	Cronos Group Inc	5.12%	4,20,184
REFI	167239102	Chicago Atlantic Real Estate	5.01%	48,056
HITI	42981E401	High Tide Inc/CAD/	4.83%	5,38,435

 

For more information on THCX visit: https://thcxetf.com/fund/

Chart 40: Select Company Geographical Footprint: U.S. Operators

Source: Intro-act, Bryant Park Capital

 

Chart 41: Weekly Summary (August 14 – August 18, 2023)

Week 33 Capital Raises M&A $ Million # of Deals $ Raised Avg. Size # of Deals 2023 3 $140.3 $46.8 2 2022 6 $30.7 $5.1 1   EQUITY RAISES Company Public/Private Ticker Sector Segment Amount Raised ($ Mn) COMPASS Pathways plc Public (CMPS: Nasdaq) Psychedelics Non-Plant-Touching $125.00 Alon Therapeutic Inc. Public (AION: CSE) Biotech/Pharma Touching the Plant $0.32   DEBT RAISES Company Public/Private Ticker Sector Segment Amount Raised ($ Mn) Coupon MindMed Public (MNMD: Nasdaq) Psychedelics Ancillary Products & Services $15.00 10.95%   MERGERS & ACQUISITIONS Acquirer/Buyer Target/Seller Deal Details Company Ticker Sector Company Ticker - Market Sector Deal Type Total Consid. ($ Mn) Big Plan Holdings - Investments/M&A Cannbia Commercial Real Estate & Operations in New England - Cultivation & Retail Acquisition of Assets $35.00 Tilray Brands, Inc. TLRY - Nasdaq Cultivation & Retail 57.5% Equity ownership of Truss Beverages Co. - Infused Products & Extracts Acquisition of Assets NA

Source: Intro-act, Viridian Capital Advisors

 

Chart 42: Cannabis Capital Raises by Week

Source: Intro-act, Viridian Capital Advisors

 

Chart 43: Cannabis M&A by Week

Source: Intro-act, Viridian Capital Advisors

 

Chart 44: Cannabis Benchmarks U.S. Spot Index (Vol. Wtd. Avg.) (Week Ending August 25, 2023)

Source: Intro-act, Cannabis Benchmarks Price Index

Chart 45: U.S. Implied Forward Prices (Week Ending August 25, 2023)

Source: Intro-act, Cannabis Benchmarks Price Index

Chart 46: Canada Cannabis Spot Index (Week Ending August 25, 2023)

Source: Intro-act, Cannabis Benchmarks Price Index

Chart 47: Best-Selling Flower Brands and Products in Washington

Source: Intro-act, Headset

Chart 48: Best-Selling Edibles Brands and Products in Washington

Source: Intro-act, Headset

Chart 49: Best-Selling Pre-Rolls Brands and Products in Washington

Source: Intro-act, Headset

Chart 50: Best-Selling Beverage Brands and Products in Washington

Source: Intro-act, Headset

Chart 51: Best-Selling Concentrates Brands and Products in Washington

Source: Intro-act, Headset

Chart 52: Best-Selling Topical Brands and Products in Washington

Source: Intro-act, Headset

Chart 53: Cannabis Company Events Calendar – Upcoming Conference Calls Date Company Ticker Web Access Phone Dial-In 9/15/23 - 11:30 A.M. ET High Tide (NASDAQ: HITI)/(TSXV: HITI) Webcast 833-950 0062 passcode: 457161

Source: Intro-act, New Cannabis Ventures

Chart 54: Cannabis Company Events Calendar – Recent Conference Calls Date Company Ticker Replay   08/30/23 - 10:00 A.M. ET Entourage Health (OTC: ETRGF)/(TSXV: ENTG)     8/29/23 - 10:30 A.M. ET Indiva (OTC: NDVAF)/(TSXV: NDVA)     8/28/23 - 04:30 P.M. ET Cansortium (OTC: CNTMF)/(CSE: TIUM.U) Webcast   8/25/23 - 10:00 A.M. ET EnWave (OTC: NWVCF)/(TSXV: ENW) Webcast   8/24/23 - 04:30 P.M. ET POSaBit (OTC: POSAF)/(CSE: PBIT) Webcast   8/24/23 - 10:00 A.M. ET SLANG Worldwide (OTC: SLGWF)/(CSE: SLNG) Webcast   8/23/23 - 08:00 A.M. ET Vext Science (OTC: VEXTF)/(CSE: VEXT) Webcast   8/17/23 - 10:00 A.M. ET Rubicon Organics (OTC: ROMJF)/(TSXV: ROMJ) Webcast   8/17/23 - 08:30 A.M. ET Ayr Wellness (OTC: AYRWF)/(CSE: AYR.A) Webcast   8/16/23 - 08:30 A.M. ET Cresco Labs (OTC: CRLBF)/(CSE: CL) Webcast   8/15/23 - 05:00 P.M. ET 4Front (OTC: FFNTF)/(CSE: FFNT) Webcast   8/14/23 - 05:00 P.M. ET Glass House Brands (OTC: GLASF)/(NEO: GLAS.A.U) Webcast   8/14/23 - 05:00 P.M. ET Clever Leaves NASDAQ: CLVR            Webcast   8/14/23 - 05:00 P.M. ET Goodness Growth (OTC: GDNSF)/(CSE: GDNS) Webcast   8/14/23 - 05:00 P.M. ET TILT Holdings (OTC: TLLTF)/(NEO: TILT) Webcast   8/14/23 - 04:30 P.M. ET Greenlane NASDAQ: GNLN Webcast   8/14/23 - 04:30 P.M. ET IntelGenx (OTC: IGXT)/(TSX: IGX) Webcast   8/14/23 - 04:30 P.M. ET SHF Holdings NASDAQ: SHFS Webcast   8/14/23 - 04:30 P.M. ET urban-gro NASDAQ: UGRO Webcast   8/14/23 - 04:15 P.M. ET CEA Industries NASDAQ: CEAD Webcast   8/14/23 - 11:00 A.M. ET Delta 9 Cannabis (OTC: DLTNF)/(TSX: DN) 888-886-7786   8/14/23 - 10:30 A.M. ET SNDL NASDAQ: SNDL Webcast   8/14/23 - 10:00 A.M. ET CV Sciences OTC: CVSI Webcast   8/14/23 - 09:00 A.M. ET IM Cannabis (NASDAQ: IMCC)/(CSE: IMCC) Webcast   8/14/23 - 08:30 A.M. ET Medipharm Labs (OTC: MEDIF)/(TSX: LABS) Webcast   8/14/23 - 08:00 A.M. ET Columbia Care (OTC: CCHWF)/(NEO: CCHW) Webcast   8/14/23 - 08:00 A.M. ET 22nd Century Group NASDAQ: XXII Webcast   8/11/23 8:00 A.M. ET Jushi Holdings (OTC: JUSHF)/(CSE: JUSH) Webcast   8/11/23 - 08:00 A.M. ET Columbia Care (OTC: CCHWF)/(NEO: CCHW) Webcast   8/10/23 - 05:30 P.M. ET Lowell Farms (OTC: LOWLF)/(CSE: LOWL) Webcast   8/10/23 - 05:00 P.M. ET Springbig NASDAQ: SBIG Webcast   8/10/23 - 05:00 P.M. ET Aurora Cannabis (NASDAQ: ACB)/(TSX: ACB) Webcast   8/10/23 - 04:30 P.M. ET cbdMD NYSE American: YCBD Webcast   8/10/23 - 11:00 A.M. ET NewlLake Capital OTC: NLCP Webcast   8/9/23 - 11:00 A.M. ET Charlotte's Web (OTC: CWBHF)/(TSX: CWEB) Webcast   8/10/23 - 10:30 A.M. ET Nova Cannabis (OTC: NVACF)/(TSX: NOVC) Webcast   8/9/23 - 05:30 P.M. ET Canopy Growth (NASDAQ: CGC)/(TSX: WEED) Webcast   8/9/23 - 05:00 P.M. ET Curaleaf (OTC: CURLF)/(CSE: CURA) Webcast   8/9/23 - 05:00 P.M. ET Planet 13 (OTC: PLNHF)/(CSE: PLTH) -   8/9/23 - 04:30 P.M. ET Hydrofarm NASDAQ: HYFM Webcast   8/9/23 - 09:00 A.M. ET Chicago Atlantic NASDAQ: REFI Webcast   8/9/23 - 08:30 A.M. ET Trulieve (OTC: TCNNF)/(CSE: TRUL) Webcast   8/9/23 - 08:30 A.M. ET Village Farms NASDAQ: VFF Webcast   8/8/23 - 06:00 P.M. ET   Ascend Wellness (OTC: AAWH)/(CSE: AAWH.U) Webcast   08/8/23: 05:00 P.M. ET Green Thumb Industries (CSE: GTII)/(OTC: GTBIF) Webcast   8/8/23 - 05:00 P.M. ET   WM Technology NASDAQ: MAPS           Webcast   08/8/23: 04:30 P.M. ET GrowGeneration NASDAQ: GRWG Webcast   8/8/23 -10:00 A.M. ET AFC Gamma NASDAQ:AFCG Webcast   8/8/23 - 08:30 A.M. ET Cronos Group (NASDAQ: CRON)/(TSX: CRON) Webcast   8/8/23 - 08:30 A.M. ET Verano (OTC: VRNOF)/(CSE: VRNO) Webcast   8/8/23 -10:00 A.M. ET AFC Gamma NASDAQ: AFCG Webcast   8/8/23 - 04:30 P.M. ET GrowGeneration NASDAQ: GRWG Webcast   8/8/23 - 05:00 P.M. ET Green Thumb Industries (OTC: GTBIFF)/(CSE: GTII) Webcast   8/8/23 - 05:00 P.M. ET WM Technology NASDAQ: MAPS Webcast   8/8/23 - 06:00 P.M. ET Ascend Wellness (OTC: AAWH)/(CSE: AAWH.U) Webcast   8/3/23 - 01:00 P.M. ET Innovative Ind Pppt NYSE: IIPR Webcast   8/2/23 - 08:00 A.M. ET MariMed (OTC: MRMD)/(CSE: MRMD) Webcast   8/02/23 - 09:00 A.M. ET Scotts Miracle-Gro NYSE: SMG Webcast   8/02/23 - 10:00 A.M. ET Turning Point Brands NYSE: TPB   Webcast     7/26/23 - 08:30 A.M. ET Tilray (NASDAQ: TLRY)/(TSX: TLRY) Webcast   7/18/23 - 03:00 P.M. ET   Avant Brands   (OTC: AVTBF)/(TSX: AVNT)                  -   7/14/23: 08:00 A.M. ET Organigram NASDAQ: OGI/TSX: OGI Webcast   06/22/23: 05:30 P.M ET Canopy Growth (NASDAQ: CGC)/(TSX: WEED) Webcast   06/15/23: 11:30 A.M. ET High Tide (NASDAQ: HITI)/(TSX: HITI) Webcast   06/14/23: 08/15 A.M. ET Aurora Cannabis (TSX: ACB)/(NASDAQ: ACB) Webcast   05/31/23: 8:30 A.M. ET StateHouse Holdings (CSE: STHZ)/(OTC: STHZF) Webcast   05/31/23: 10:30 A.M. ET BZAM (CSE: BZAM)/(OTC: BZAMF) -   05/31/23: 04:30 P.M. ET POSaBIT (CSE: PBIT)/(OTC: POSAF) Webcast

Source: Intro-act, New Cannabis Ventures

Chart 55: Cannabis IPO Pipeline S. No Company Filing Market Description 1 Altmore BDC SEC NASDAQ Finance 2 CWE European Holdings SEDAR TSX-V German Hemp Operator

Source: Intro-act, New Cannabis Ventures

 

Chart 56: Cannabis SPAC Pipeline S. No Company Filing IPO Size ($ Mn) Market/Symbol Pending Deadline 1 BGP Acquisition Corp. SEDAR 115 NEO: BGP.U Craft 1861 Global 11/04/22 2 Canna-Global Acquisition SEC 200 NASDAQ: CNGLU   05/30/23 3 Ceres Acquisition Corp SEDAR 120 NEO: CERE.U   12/03/22 4 Clover Leaf Capital SEC 138.3 NASDAQ: CLOEU   07/22/22 5 Relativity Acquisition Corp. SEC 125 NASDAQ: RACY   08/15/23 6 Silver Spike III Acquisition Corp SEDAR 125 NEO: SPKC.U   11/28/22

Source: Intro-act, New Cannabis Ventures

 

 

 

Chart 57: Cannabis Industry Events Calendar S. No Event Name Place Date 1 NECANN New Jersey ATLANTIC CITY, NJ Sep 8 - 9, 2023 2 Green Label Expo WORLD MARKET CENTER, LV Sep 13 - 14, 2023 3 Montreal Cannabis Expo QUEBEC, CANADA Sep 13 - 14, 2023 4 Cannabis Business Bootcamp PLAINSBORO, NJ Sep 15, 2023 5 Lucky Leaf Expo ALBUQUERQUE Sep 22 - 23, 2023 6 NECANN New York Cannabis and Hemp ALBANY, NY Sep 29 - 30, 2023 7 CannaCon Midwest DETROIT, MI Oct 6 - 7, 2023 8 Lucky Leaf Expo ST. LOUIS, MO Oct 6 - 7, 2023

Source: Intro-act, Cannabis Business Times

 

 

 

			Share Price	Mkt Cap (Mns)	Ent Val (Mns)	Price Performance			Sales			EBITDA			Book Value
		08/28/23				% to   High	% to       Low	% YTD	LTM	NTM	EV/Sales	LTM	NTM	EV/ EBITDA	Book/ Share	P/ Book
Peer Set
Canadian LPs				3,319	3,166			-43%								0.4 x
1	TILRAY INC	TLRY	2.35	1,653	1,809	118%	-36%	-13%	627	748	2.4 x	61	69	26.2 x	5.05	0.5 x
2	CANOPY GROWTH CORP	CGC	0.39	280	700	1122%	-11%	-83%	310	313	2.2 x	(239)	(112)	-	1.02	0.4 x
3	SUNDIAL GROWERS INC.	SNDL	1.50	390	361	124%	-17%	-28%	683			15			3.80	0.4 x
4	AURORA CANNABIS INC	ACB	0.44	156	129	292%	-1%	-52%	175	200	0.6 x	(20)	8	16.5 x	0.98	0.4 x
5	AUXLY CANNABIS GROUP INC	CBWTF	0.01	12	146	335%	-24%	-23%	90			(6)			0.05	0.2 x
6	ORGANIGRAM HOLDINGS INC	OGI	1.43	115	76	255%	-10%	-55%	120	119	0.6 x	8	3	23.2 x	2.76	0.5 x
7	CRONOS GROUP INC	CRON	1.71	652	(189)	111%	-4%	-33%	83	87	-2.2 x	(72)	(44)	-	2.99	0.6 x
8	ALEAFIA HEALTH INC.	ALEAF	0.02	6	40	377%	-28%	-67%	43						(0.02)	-0.9 x
9	GREEN ORGNC DUTCHMN HLD	TGODF	0.12	22	58	739%	-8%	-47%							0.42	0.3 x
10	RUBICON ORGANICS INC	ROMJF	0.34	19	20	177%	-25%	-38%	41	48	0.4 x	5	9	2.3 x	0.51	0.7 x
11	FLORA GROWTH CORP.	FLGC	2.12	15	15	1098%	-9%	-53%	64						1.59	1.3 x
			Share Price	Mkt Cap (Mns)	Ent Val (Mns)	Price Performance			Sales			EBITDA			Book Value
						% to   High	% to       Low	% YTD	LTM	NTM	EV/Sales	LTM	NTM	EV/ EBITDA	Book/ Share	P/ Book
US - MSOs				6,365	12,968			-34%								1.0 x
12	CURALEAF HOLDINGS INC	CURLF	2.77	1,748	3,140	185%	-21%	-36%	1,367	1,377	2.3 x	301	319	9.8 x	1.63	1.7 x
13	TRULIEVE CANNABIS CORP	TCNNF	3.45	551	1,445	367%	-1%	-54%	1,174	1,091	1.3 x	341	296	4.9 x	7.88	0.4 x
14	VERANO HOLDINGS CORP.	VRNOF	2.64	906	1,313	172%	-4%	-15%	915	988	1.3 x	303	310	4.2 x	3.86	0.7 x
15	GREEN THUMB INDUSTRIES INC	GTBIF	6.79	1,424	2,023	143%	-5%	-21%	1,021	1,047	1.9 x	318	313	6.5 x	7.17	0.9 x
16	CRESCO LABS INC	CRLBF	1.04	329	864	329%	-4%	-42%	803	739	1.2 x	142	157	5.5 x	1.85	0.6 x
17	COLUMBIA CARE INC.	CCHWF	0.42	170	688	433%	-15%	-44%	513	546	1.3 x	70	101	6.8 x	0.39	1.1 x
18	TERRASCEND CORP	TRSSF	1.73	496	726	45%	-42%	53%	278	337	2.2 x	48	71	10.3 x	1.02	1.7 x
19	AYR WELLNESS	AYRWF	0.80	47	617	494%	-29%	-33%	479	512	1.2 x	104	130	4.8 x	8.15	0.1 x
20	ASCEND WELLNESS HOLDINGS, INC	AAWH	0.50	103	608	458%	-7%	-57%	461	530	1.1 x	100	106	5.7 x	0.81	0.6 x
21	4FRONT VENTURES CORP.	FFNTF	0.11	70	307	436%	-38%	-54%	143	118	2.6 x	15	22	14.1 x	0.01	9.1 x
22	JUSHI HOLDINGS INC.	JUSHF	0.35	69	317	569%	0%	-54%	286	286	1.1 x	27	59	5.4 x	0.15	2.4 x
23	CARA THERAPEUTICS INC	CARA	2.81	152	58	356%	-9%	-74%	27	59	1.0 x	(115)			2.01	1.4 x
24	VILLAGE FARMS INTL INC	VFF	0.76	84	121	271%	-27%	-29%	282	292	0.4 x	2	7	16.3 x	2.96	0.3 x
25	MARIMED	MRMD	0.29	108	179	138%	-14%	-18%	141	166	1.1 x	27	41	4.4 x	0.22	1.3 x
26	GOODNESS GROWTH HOLDINGS	GDNSF	0.12	13	77	1163%	-23%	-27%	77	89	0.9 x	9	14	5.3 x	(0.06)	-1.9 x
27	IANTHUS CAPITAL HOLDINGS	ITHUF	0.01	84	265	423%	-35%	-43%							(0.00)	-3.4 x
28	ACREAGE HOLDINGS	ACRHF	0.14	11	221	806%	-20%	-73%							0.36	0.4 x
			Share Price	Mkt Cap (Mns)	Ent Val (Mns)	Price Performance			Sales			EBITDA			Book Value
						% to   High	% to       Low	% YTD	LTM	NTM	EV/Sales	LTM	NTM	EV/ EBITDA	Book/ Share	P/ Book
Cannabis - US and Others				5,710	10,040			-15%								1.5 x
29	COMPASS DIVERSIFIED HOLDINGS	CODI	20.77	1,493	3,933	11%	-21%	14%	2,261	2,322	1.7 x	368	447	8.8 x	12.14	1.7 x
30	INNOVATIVE INDUSTRIAL PPTYS	IIPR	77.34	2,169	2,318	62%	-18%	-24%	294	302	7.7 x	240	243	9.6 x	69.16	1.1 x
31	HYDROFARM HOLDINGS GROUP	HYFM	0.92	42	991	311%	-27%	-40%	261	235	4.2 x	(17)	8	130.9 x	(10.13)	-0.1 x
32	TURNING POINT BRANDS, INC	TPB	24.71	435	727	6%	-24%	14%	418	414	1.8 x	94	92	7.9 x	7.28	3.4 x
33	WM HOLDINGS	MAPS	1.23	115	227	134%	-52%	22%	199	198	1.1 x	9	20	11.1 x	0.22	5.6 x
34	AFC GAMMA, INC	AFCG	13.07	267	273	39%	-24%	-17%	72	68	4.0 x				16.64	0.8 x
35	PLANET 13 HLDGS INC	PLNHF	0.53	117	104	231%	-14%	-14%	101			3			0.82	0.6 x
36	22ND CENTURY GROUP, INC.	XXII	1.77	37	60	1171%	0%	-87%	84	100	0.6 x	(56)	(34)	-	4.56	0.4 x
37	GROWGENERATION CORP	GRWG	2.66	163	138	224%	-4%	-32%	246	220	0.6 x	(14)	(5)	-	3.37	0.8 x
38	HIGH TIDE INC	HITI	1.27	95	134	76%	-19%	-18%	440	492	0.3 x	21	29	4.6 x	1.57	0.8 x
39	TILT HOLDINGS INC	TLLTF	0.03	9	120	511%	-34%	-30%	169	178	0.7 x	(14)	9	12.7 x	0.24	0.1 x
40	NEW LAKE CAPITAL PARTNERS	NLCP	12.77	272	241	53%	-8%	-20%	46						19.61	0.7 x
41	INTERCURE LTD	INCR	1.48	67	94	276%	-4%	-55%	127			21			3.06	0.5 x
42	ICANIC BRANDS COMPANY	ICNAF	0.02	21	14	423%	-31%	359%							0.01	2.8 x
43	GLASS HOUSE BRANDS	GLASF	3.60	218	321	25%	-51%	88%	134			4			1.81	2.0 x
44	BRIGHT GREEN CORPORATION	BGXX	0.51	92	95	369%	-32%	9%							0.07	6.9 x
45	MEDICINE MAN TECHNOLOGIES	SHWZ	0.73	51	212	190%	-14%	-49%	166	198	1.1 x	57	68	3.1 x	2.10	0.3 x
46	CHARLOTTE’S WEB	CWBHF	0.22	34	32	280%	-24%	-57%	69	80	0.4 x	(14)	(7)	-	0.51	0.4 x
47	URBAN-GRO	UGRO	1.05	12	8	380%	-1%	-61%	65	107	0.1 x	(11)	(3)	-	2.30	0.5 x
48	ISPIRE TECHNOLOGY	ISPR	9.88	536	507	16%	-31%								1.51	6.6 x

 

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