Weekly Wrapup: Beyond the headlines of the week ended April 12, 2019

M&A activity is spiking, Pennsylvania lawmakers are mixing things up for one big marijuana player, and Trulieve rocked its Q4 earnings. Those headlines and more grabbed our attention here at Investor Intelligence this week.

Here’s a recap of the week’s top newsmakers and deals – plus a look at what we’ll be watching for next week:

Trulieve Cannabis Corp. continues to be one to watch

As called out in our note to subscribers on Thursday, Trulieve continues to be a top U.S. cannabis company to watch.

The Florida-based firm is by far the most profitable public cannabis company – cranking out Q4 net income of $10.7 million and full-year net income of $43 million while most of its competitors continue to burn through cash as they grow.

We know, we know – we’re still in the early innings of cannabis, and it takes enormous amounts of capital to grow a national footprint.

But you can’t discount Trulieve’s success in pumping out earnings for its shareholders this early in the game by charting a solid path to profitability with its leading position (65% market share) in Florida.

Throughout the year, we’ll be closely following the company’s work to duplicate its success in new markets as it expands into California and Massachusetts.

Pennsylvania regulators cracking down on ‘big’ cannabis

We’ll continue to follow what might come of Pennsylvania’s threats to take away medical marijuana dispensary licenses from Arizona-based Harvest Health & Recreation.

ICYMI, the full story is covered on MJBizDaily.com.

We’ll be asking for more insight – and you can, too – on Tuesday, April 16, at 11 a.m. ET, when we host Harvest CEO Steve White for our monthly Investor Intelligence executive webcast.

Cannabis companies on M&A tear

Through the second week of April, 106 M&A deals have closed, up from 67 this time last year, according to data tracked by our analytics partners Viridian Capital Advisors.

Cannabis cultivators and retail operators continue to lead the pack with 41 deals overall. Of those, 28 were closed by public companies.

If you haven’t already, check out MJBizDaily’s Weekly Deal Tracker for the latest data on cannabis investment and M&A activity.

Next Week: Two Canadian licensees will release earnings Monday, April 15

  • Organigram Holdings (TSX: OGI), the New Brunswick-based cannabis group, will report earnings before the market opens April 15. The period reported is the second quarter of the fiscal year ended Aug. 31, 2019. In its first quarter, Organigram reported net revenue of 12.4 million Canadian dollars ($9.3 million) and profit of CA$29.5 million.
  • Aphria (TSX: APHA; NYSE: APHA) will release its fiscal third-quarter 2019 results, also before the market opens. The Ontario-based cannabis company reported net revenue of CA$21.7 million ($16.3 million) and gross profit of CA$10.2 million for fiscal Q2 2019.

With that, enjoy the weekend!

As always, feel free to reach out to me directly with questions, comments or feedback at [email protected].

Sincerely,

Lisa Bernard-Kuhn

Editor, Investor Intelligence