16 Jul Marijuana Companies That Could Win the Great American Green Rush
With the legalization of marijuana progressing across more states in the US, marijuana companies are getting even more room for expansion. The US marijuana industry is set to become the next big thing. The U.S legal marijuana industry was estimated at $13.6 billion in 2019, according to New Frontier Data. According to Cowen analyst Vivien Azer, the industry is forecast to generate $85 billion in sales by 2030. These numbers capture the vibrant marijuana market in the US. It is clear that the demand for marijuana is increasing, both for recreational and medical uses. It was discovered that ‘CBD gummies’ was the third most searched food-related item in 2018, further portraying the wave of acceptance experienced by the marijuana industry. However, many American marijuana companies are still battling profitability due to intense capital investment in expansion. Regardless, we believe some companies would be able to come out at the top of the present marijuana rave.
GREEN THUMB INDUSTRIES
Green Thumb majorly engages in selling cannabis consumer packaged goods such as CBD edibles, cannabis capsules, flowers, lotions, all through a couple of owned brands. These brands include; Incredibles, Dr. Solomon’s, Rhythm, and The Feel Collection. Green Thumb’s products are distributed through its own distribution chains ‘Rise’ and ‘Essence,’ which encompasses 42 retail stores in 10 states. The company now has licenses for 92 retail locations across 12 states. The company recently opened ‘Rise Paterson’, an NJ marijuana dispensary, the first in New Jersey. According to Bloomberg, Green Thumb boasted a market cap of $2.168 billion as at 8 July 2020. Besides, the company achieved a 267.6% year-over-year increase to $102.6 million in total revenue for the first quarter of 2020. Gross Profit was also up by 51% year-over-year to $53 million. While still recording a net loss, the Green Thumb industry is undoubtedly a well-poised contender in the US marijuana industry.
This is a company that started with Kevin Murphy’s (CEO) investment in a Maine cannabis license. However, it has now grown through a series of changes into a leading vertically integrated multi-state operator. Acreage Holdings is licensed in most states among competitors with licenses for 79 shops in 19 states, of which 19 stores are already open. Acreage Holdings is the company behind the following brands: The Botanist, Live Resin Project, Natural Wonder, and Prime. The Botanist brand provides several dispensaries across states. It even established an NJ marijuana dispensary recently. Acreage Holdings presently has a market cap of $245.52 million. However, its position in the marijuana industry may improve considerably in the future with the company set to be acquired by Canopy Growth on a condition that cannabis becomes legal at the federal level.
CURELEAF HOLDINGS INC
This company is a vertically integrated multi-state cannabis operator engaged in producing and distributing cannabis products. Curaleaf is currently present in 17 states, operates 57 owned dispensaries, 15 cultivation sites, and 24 processing sites, all servicing over 165,000 patients. Curaleaf recently completed an acquisition of Select and eight other businesses, which has facilitated its expansion into some key states like Arizona, California, and Ohio. The company has a market cap of $3.069 billion and can grow its revenue for FY2019 by 187% year-over-year to $221 million. Curaleaf also has a couple of acquisitions still lined up, which might help solidify its position in the industry.
CV SCIENCES INC
CV Sciences develops, manufactures, markets, and distributes various consumer products containing cannabidiol (CBD). This is the company behind the top-selling Plus CBD Oil brand, which distributes over 50 products and has built a reputation for its hemp-derived oil. The company is also involved in the development and commercializing of CBD-based novel therapeutics. CV Sciences has filed a couple of patent applications for some drugs and is also pursuing an FDA approval, which, if gotten, might give it the needed boast into a market-leading position similar to that of GW pharmaceuticals. The company currently holds a market cap of $56 million. Like most other marijuana companies in the US, it still recorded a net loss in the last quarter.
HARVEST HEALTH & RECREATION INC
This is a multi-state cannabis operator (MSO) and vertically integrated cannabis company specializing in cultivation, dispensaries and production facilities. With a couple of crucial acquisitions lined up, Harvest Health & Recreation Inc. is set to experience an exponential expansion in the US cannabis market. Also, Harvest Health & Recreation Inc. has over 200 licenses giving it rights to open retail locations in 18 states. The company has an outstanding presence in Arizona. The company’s market cap stands at $295 million. In addition to that, its first-quarter sales grew by 134% year-over-year, mostly due to new stores and the cultivation and manufacturing expansion.
Trulieve is one of the leading medical cannabis companies in the state of Florida. It adopts a vertically-integrated “seed-to-sale” operation, which has helped it gain a sizeable fraction of the Florida market.Furthermore, the company has an extensive dispensary network with 49 stores withing Florida and 50 nationwide. In its bid for expansion, the company has already bought licenses in California, Massachusetts, and Connecticut with plans to buy even more.
Impressively, Trulieve is one of the few marijuana companies that turned in a net profit in the first quarter of 2020. It was able to achieve a bottom-line of $13 million, a decline from the previous year, but a rare feat. Presently, Trulieve has a market cap of $1.3 billion and also saw a 116% year-over-year growth in total revenue, raking in $96 million. Considering that Trulieve was able to achieve all of these from operating majorly in one state, it remains to be seen the heights it would attain when its expansion plans gain momentum.
The great green American rush is upon us with various marijuana products like CBD edibles, marijuana flowers, marijuana pills, marijuana-based dermal products, all witnessing high demand. Will these companies be able to take full advantage of the moment? We cannot forecast absolutely what the case will be, but things are looking very good for now.