Trulieve delivers “blowout” Q3 results with commanding market share lead in Florida

Florida-based cannabis operator Trulieve reported third-quarter revenue that beat analyst expectations, painting a rosier picture for U.S. pot companies compared to their Canadian counterparts. Trulieve said its Q3 revenue was US$70.7 million, beating  the consensus estimate of US$65.6 million, while its adjusted EBITDA was US$36.9 million. Trulieve also reaffirmed its 2019 and 2020 guidance, which forecast US$220 million-to-US$240 million of revenue this year and US$380 million-to-US$400 million next year. Canaccord Genuity analyst Derek Dley described the quarter as a “blowout” and “exceptionally strong” for Trulieve, noting that the company has a large share of the dried flower market in Florida and nearly 80 per cent of the active medical marijuana users in the state.

Survey finds investors still bullish in cannabis industry despite sector trading in bear market

A new survey found that 86 per cent of 300 individual investors polled remain bullish about the pot space, despite the industry trading in a bear market for the past several months. The survey, conducted by New York-based KCSA Strategic Communications, also found that 60 per cent of investors polled believe that cannabis will remain a strong growth sector, even in an economic downturn. Perhaps more surprisingly, only five per cent of investors surveyed say they’ll sell their cannabis stocks in the event of a recession. The survey also found that there has been a 30-per-cent drop in investors sinking more than $100,000 into cannabis.

Aurora Cannabis says 94% of debt holders converted March 2020 debentures during early offering period

Aurora Cannabis shares snapped a losing skid on Tuesday after the company disclosed that 94 per cent of debentures allowed to settle this week ahead of a March deadline have been converted. Monday was the first day that investors holding Aurora’s $230 million five per cent unsecured debentures due March 9, 2020 were able to convert those securities under an alternate settlement procedure that the company offered last week. According to The Deep Dive, Aurora’s debt holders were able to convert their debentures four months early with a six per cent discount priced at this week’s volume-weighted average price. Aurora said it will issue a press release by the end of the week confirming what the early conversion price will be.

TGOD launches platform to educate budtenders on organic cannabis products

The next time you enter a cannabis dispensary, don’t be surprised if a budtender asks if you’d prefer an organic option. The Green Organic Dutchman is looking to popularize a new organic cannabis certification program for budtenders. TGOD said it plans to conduct 40 in-store training sessions for budtenders by the end of the year. The company also announced Tuesday that it has expanded its Canadian distribution footprint to include purchase orders from Alberta, Manitoba and Nova Scotia.

Curaleaf posts second profitable quarter

U.S. pot producers are showing their Canadian counterparts that profitability doesn’t have to be elusive. Wakefield, Mass.-based Curaleaf reported a beat on both the top and bottom lines in its latest quarter as sales surged. The company is also reiterating its 2020 forecast of generating US$1B in revenue and US$300M in adjusted profit. After a string of disappointing financial reports from Canada’s largest cannabis producers, financial results this week from Curaleaf and Trulieve are the latest indication U.S. pot companies are outperforming.

Daily Buzz 

“This could get worse before it gets better.”
– Canaccord Genuity cannabis analyst Matt Bottomley on the state of the Canadian pot sector after last week’s earnings disappointments.

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