Have These Cannabis Plays on Your Radar this Week (TCNNF, APHA, HEXO)

Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced its financial results for the third quarter of 2019 ended September 30, 2019, including record revenue of $70.7 million, an increase of 22% on a sequential quarter-to-quarter basis, and an adjusted EBITDA increase from $31.6 million in Q2 2019 to $36.9 million at September 30, 2019.

“Our third quarter results reflect our continued customer loyalty, growth, and leadership position. Trulieve’s strong brand, wide-ranging access to stores, and authentic customer experience have resonated with our customers and patients,” stated Kim Rivers, Trulieve CEO. “The third quarter was also successful in further strengthening our position in our existing markets as well as preparing for new market entry. We continue to build operational efficiencies and financial discipline to ensure a solid foundation, cash reserves, and the right tools at our disposal to expand our footprint. Looking ahead, this is an exciting time as we execute on our strategic vision to be one of the top performing cannabis companies in North America.”

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

The company distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”

And the stock has been acting well over recent days, up something like 4% in that time.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) generated sales of $93.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 20.5% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($41.1M against $64.9M, respectively).

 

Aphria Inc (NYSE:APHA) commands a market cap of $1.17B as a leading global cannabis company driven by “an unrelenting commitment to our people, product quality and innovation.”

Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria has been setting the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible. Focusing on untapped opportunities and backed by the latest technologies, Aphria is committed to bringing breakthrough innovation to the global cannabis market.

The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment. “Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents.”

The company touts itself as one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. The company is truly powered by sunlight, allowing for the most natural growing conditions available. “We are committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. We are the first public licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.”

One of the company’s major strategic investments, High Tide Inc. (HITIF), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, just announced that the Canna Cabana location in Unit #6128 at 403 Mackenzie Way SW in Airdrie has received its first delivery of recreational cannabis products from “Alberta Gaming, Liquor, and Cannabis”, and will begin selling cannabis and accessories.

According to the release, High Tide currently has 30 branded locations selling recreation cannabis products across Canada, inclusive of the Airdrie Store.

“As promised, High Tide has steadily executed on its growth plans to become the largest retailer of recreational cannabis in Alberta. By hitting the 30-store milestone, we continue to be a leading retailer in the country as well,” said Raj Grover, President and Chief Executive Officer of High Tide. “Airdrie is rapidly growing as a neighboring community to the north of Calgary and we are excited to open this Canna Cabana store in this excellent location.”

The development permits for the remaining Canna Cabana and KushBar stores needed to achieve the AGLC’s maximum of 42 are currently under various stages of development and construction. Outside of Alberta, High Tide currently has a Canna Cabana retail cannabis store in Swift Current, Saskatchewan, along with 3 branded locations in Hamilton, Sudbury and Toronto, Ontario.

 

Hexo Corp (NYSE:HEXO) recently provided additional information about licensing at its facility in Niagara, Ontario.

According to the release, “In November 2018, prior to HEXO Corp’s acquisition of Newstrike Brands Ltd., the UP Cannabis cultivation facility in Niagara was licenced by Health Canada and production from that facility began shortly after. Block B – the space in question – was included in the licence application. In October 2018, Health Canada requested additional information for the application, pertaining specifically to the building where Block B is housed. When the licence was received, the team was under the impression that Block B was included in the licence. In February 2019, Health Canada conducted an inspection of the facility, which included Block B and no observations were made about cultivation in this space. This further reinforced the assumption that it was indeed a licensed growing space.”

Hexo Corp (NYSE:HEXO) trumpets itself as an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market.

Through its hub and spoke business strategy, HEXO Corp is partnering with Fortune 500 companies, bringing its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to established companies, leveraging their distribution networks and capacity. As one of the largest licensed cannabis companies in Canada, HEXO Corp operates facilities in Ontario and Quebec.

The Company is also expanding internationally and has a foothold in Greece to establish a Eurozone processing, production and distribution center.

The Company serves the Canadian adult-use markets under its HEXO Cannabis, Up Cannabis and Original Stash brands, and the medical market under HEXO medical cannabis.

According to company materials, “HEXO Corp. creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market. One of the country’s lowest-cost producers, HEXO is rapidly increasing its production capacity in the lead up to the adult-use cannabis market. The Company currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year-end. HEXO will serve the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand.“

And the stock has been acting well over recent days, up something like 20% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -10%.

Hexo Corp (NYSE:HEXO) generated sales of $15.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 18.5% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($161.9M against $52.7M).

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