Marijuana Business Factbook 2019

278 Marijuana Business Factbook 2019 Chapter 7 | Cannabis Business Funding & Investing © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. CHART 7.04: Sampling Of Marijuana Companies’ Revenue & Market Capitalizations: Canadian Businesses Compared With U.S. Businesses *Revenue is for 12 months ended 6/30/2018. Note: All values in USD. Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Sampling Of Marijuana Companies' Revenue & Market Capitalizations: Canadian Businesses Compared With U.S. Businesses Canopy Growth Aurora Cannabis Cresco Labs MedMen* Average Cannabis Dispensary i.. $127.5M $43.0M $40.0M $92.3M $4.0M Cresco Labs $1.8B MedMen* $1.4B Aurora Cannabis $9.2B Canopy Growth $16.6B Market Capitalizations As Of 4/22/19 Revenue Generated In 2018 Company Based In U.S. Company Based In Canada is Dispensary in U.S. C r r is $9.2B MedMen $1.4B Major plant-touching cannabis firms can be placed into three broad categories: publicly traded Canadian companies, publicly traded U.S. firms and private U.S. businesses. Canadian players bring in the most revenue, with cannabis giants Canopy Growth and Aurora Cannabis pulling in more than twice the revenue of Cresco Labs and MedMen. The difference in scope is even more pronounced when these companies are compared in terms of market capitalization: As of late April 2019, Canopy’s market cap of $16.6 billion was more than nine times that of Cresco’s $1.8 billion and more than 11 times MedMen’s $1.4 billion. Major publicly traded Canadian companies have the first-mover advantage internationally, allowing them to develop a global footprint while U.S. firms are still fighting for a toehold in their domestic markets. Currently, there is high demand among investors to get involved in the marijuana industry, and Canadian businesses are viewed as the highest-quality investments. There may be a long runway to achieve return on these investments, however, as some international markets may take significant time to develop fully operational markets. Private U.S. companies are much smaller and don’t typically operate in multiple states as a publicly traded U.S. company would. The average privately owned dispensary in the United States brings in $4 million annually ― one-tenth the revenue of multistate operator MedMen. But lower annual revenues are not an indicator that such companies are a lower-quality investment; investment in such companies simply is not a widely available opportunity.