Welcome to 2020: The Boom & The Bust - Market Update - Jan/7/2020
Happy New Year! In this market update we cover the good and bad for the start of 2020!
- 2020 will be a year of Strong Catalysts driven by Fundamental Growth
- There will also be significant headwinds to navigate
Illinois Goes Full Rec:
- Banner first day with $3.3M USD sales + $2.2M on 2nd day
- $11M USD of sales in 5 days (with customers paying $20 USD/gram of flower)
- Illinois will be a great market in 2020 and 2021, with a strong sales ramp and limited licenses
Ontario Retail:
- 45 dispensaries to open in Ontario Q1-Q2 (licenses were granted last year)
- 160 new retail licenses in 2020 in Ontario (~225 granted by end of 2020 and ~475 by end of 2021)
- This will greatly help ramp Canadian sales in 2020 and 2021
Cannabis 2.0 Launches in Canada:
- 2.0 products shipping this week to retail and online next week (in Ontario)
- These High Margin products will greatly drive sales for the entire industry
- Very limited supply of products initially with many more to roll out over next 6 months
- Will be similar to flower – under supply then over supply
- We debate the strict marketing rules and how fast companies should be moving
Vaping Bans:
Quebec banning vapes and raising age to 21
Alberta delaying vapes until spring (at least)
US News:
- Debt Deals for Curaleaf ($275M USD) + Harvest ($73M USD)
Curaleaf - $275M USD debt deals // Harvest - $90M USD debt deal
- Trulieve Short Report
Florida – Rec vote not looking good, suing for more time (flower got approved by lawsuit)
See full Florida point-by-point rebuttal here: https://www.reddit.com/r/weedstocks/comments/ebztnd/my_analysis_of_the_trul_trulieve_short_report/?utm_source=share&utm_medium=web2x