Trulieve Archives - Green Market Report

William SumnerWilliam SumnerAugust 15, 2019
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2min3850

Yesterday, Trulieve Cannabis Corp. (OTCMKTS: TCNNF) (CNSX: TRUL) announced the release of its second quarter financial results.

Year-over-year, Trulieve’s increased 149% from $23.3 million to $57.9 million. Keeping pace with revenue, operating expenses also rose from $6 million to 14.8 million, representing a 146% increase. Gross profit was $37.6 million, and the gross profit margin was 65%. Adjusted EBITDA was $31.6 million.

A considerable amount of the company’s growth was due to a rise in the number of medical cannabis patients in Florida, which increased by 19%. Driving patient growth was the introduction of cannabis flower to market, which accounted for 50% of total product sales in the state for the second quarter. As of June 30, 2019, there were 181,000 medical cannabis patients in Florida.

Quarterly Highlights

During the last quarter, Trulieve expanded its total cultivation capacity to 1.6 million square feet, completed its acquisition of The Healing Corner medical cannabis dispensary, closed a public debt offering of $70 million, and commenced trading on the OTCQX Best Market under the symbol TCNNF.

Additionally, the company’s founders extended a voluntary lock-up agreement of their 65,253,093 shares, or approximately 59% of shares outstanding on an as-converted basis, until July 2020.  Trulieve also closed its sale-leaseback transaction with Innovative Industrial Properties, Inc. to provide capital for its Holyoke, Massachusetts cultivation and processing site.

“Our strong financial results for the quarter combined with our operational and foundational evolution illustrates that Trulieve is not just a cannabis company, but an organization that possesses the key fundamentals expected of leading companies across all industries,” said Kim Rivers, CEO of Trulieve. “By continuing to focus on operational efficiencies, maintaining sound financial discipline, and leveraging our strong brand awareness and patient loyalty within current markets and in future expansion initiatives, we expect our efforts to translate to new strong results throughout the remainder of 2019.”


William SumnerWilliam SumnerJuly 11, 2019
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5min3810

It’s time for your Daily Hit of cannabis financial news for July 11, 2019.

On the Site

Bhang Corporation

Cannabis edible company known for its chocolates Bhang Corporation (CSE: BHNG) began trading on the Canadian Securities Exchange as Bhang Inc. under the stock symbol “BHNG” on July 11, 2019. “We’re proud to announce this major milestone for Bhang and the industry, as we see a national cannabis brand begin trading on the CSE. This public listing fuels our strategy to meet the growing demand for today’s most innovative cannabis products,” Scott Van Rixel, CEO of Bhang, said.

California Cannabis Contract Conundrums For Lawyers

We were prompted to write this article by the juxtaposition of two articles republished by Cannabis Business Executive in its July 4th Edition. The title of the first article, The Top 5 Most Dangerous Cannabis Contracts in California, caught our eye. We were intrigued by the title. What is a “dangerous” contract?

Executive Spotlight: Antonio Frazier, Director of Operations for CannaSafe

Antonio Frazier is the Director of Operations at CannaSafe, the first ISO licensed cannabis lab in the world and the leading marketshare holder in California. He met CannaSafe President, Aaron Riley, while playing football together at Furman University, where he earned a Bachelor of Science degree; he also holds a B.S. in Materials Engineering from Clemson.

In Other News

Demetrix

The biotechnology company Demetrix Inc. announced that it had raised $50 million in Series A funding. The company specializes in the production of CBD through fermentation, using bakers’ yeast to help accelerate cannabinoid production. Tuatara Capital led the fundraise and included investors from Horizons Ventures, who led Demetrix’s previous $11 million Series Seed round. Demetrix plans on using the funds to scale its operations.

Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) (OTC: TCNNF) announced that its company founders have voluntarily entered into a lock-up agreement. Representing 65,253,093 subordinate voting shares of the company (59.25%), shareholders have agreed that they will not sell or offer to sell their shares on or before July 25, 2020. On January 25, 2020, an additional 15%, or 11,205,960, of the subordinate voting shares will be released from the lockup. According to Trulieve CEO Kim Rivers, the lock-up will help increase shareholder value. “This extension of the lock-up period demonstrates the continued confidence the company founders have in the execution of our long-term strategy,” Rivers said.

Green Growth Brands

Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) announced that it had reached a deal with American Eagle Outfitters to sell hemp-based CBD infused products in nearly 500 of the retail clothing brand’s stores, as well as its online store. The products will be specifically designed for the American Eagle brand, and sales are expected to begin sometime in October 2019.

Supreme

The Supreme Cannabis Company, Inc. announced today that the Supreme Court of British Columbia had approved its acquisition of Blissco Cannabis Corp. The arrangement will close on July 12, 2019, upon which Supreme will acquire all of Blissco’s issued and outstanding common shares. “With the closing of this acquisition, Supreme Cannabis will expand its portfolio to include a consumer focused brand that specializes in products for the premium global wellness category,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “In addition to gaining an established wellness brand, Supreme Cannabis will acquire Blissco’s facility built to EU GMP standards that has been extracting oils for the Canadian market since August 2018.”


StaffStaffApril 11, 2019
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4min7000

Trulieve Cannabis Corp. (CSE: TRUL) reported its fourth quarter and 2018 full-year results with revenue rising 172% to $35.9 million from last year’s $28.3 million for the same time period. The company’s net income grew a whopping 3,467% in the fourth quarter to $10.7 million from last year’s $0.3 million for the same time period.

“In 2018, we focused on building a foundation to scale the business over the long-term and made significant progress on Trulieve’s core mission to create the preferred customer-centric brand in cannabis,” said Kim Rivers, CEO of Trulieve. “In the fourth quarter, we demonstrated our growth through brand expansion and scale by increasing our dispensary footprint in Florida by five stores, adding cultivation and state of the art processing facilities, onboarding strategic brand relationships and making significant progress on our plans for growth beyond Florida with acquisitions in Massachusetts and California.”

Gross margins increased from 46% to 58% in the fourth quarter and the adjusted EBITDA was $45.6 million, or 44.4%.

Full-Year 2018 Results

Revenue for the full-year 2018 increased 419% to $102.8 million over last year’s $19.8 million. The net income for 2018 was $43 million, an increase of 1,094% over last year’s $3.6 million. This was an adjusted EBITDA of $45.6 million, or 44.4%.

2018 Highlights

In 2018, the company entered into agreements to acquire 100% of Life Essence, Inc. in Massachusetts and 100% of Leef Industries, LLC in California. It also expanded Trulieve-branded products, partnerships, and the number of Florida dispensaries to 22 and opened a 55,000 square foot, best-in-class, GMP certified processing facility, bringing efficiencies and state-of-the-art innovation to our Florida production.

The company received a favorable Florida settlement that increased the potential number of Trulieve dispensaries to 14 above the state cap. The state of Florida also approved of smokable flower for medical marijuana patients. 

Looking Ahead

The company forecast that revenue is expected to grow 108% to approximately $214M. As previously disclosed, full-year 2019 revenue growth guidance includes an expected increase in the number of dispensaries in Florida and execution on our multi-state expansion. The anticipated gross profit of approximately $145M for 2019, or 68% of revenue before net changes in the fair value of biological assets. Trulieve is also projecting that it will have an adjusted EBITDA of approximately $92M, or 43% of revenue, reflecting our continued leverage of scale and financial discipline.

Rivers added, “2019 will be a year of execution for us as we leverage our strong revenue growth and positive adjusted EBITDA. We will focus on innovating and delivering new products for our customers, such as smokable flower, edibles, and nano-emulsions. We will cultivate new strategic partnerships, as we have recently demonstrated with Slang and Blue River. Finally, we will execute on our plans for multi-state operational expansion.”

 


Debra BorchardtDebra BorchardtFebruary 19, 2019
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4min10520

Fresh off its successful IPO, SLANG Worldwide (CNSX: SLNG) has formed a strategic partnership with Florida-based Trulieve Cannabis (OTC: TCNNF) to offer cannabis patients in Florida access to leading cannabis brands in Trulieve’s dispensaries across the state. As part of the agreement, Trulieve will have an exclusive license to SLANG’s extensive portfolio through its U.S. subsidiary, National Concessions Group, Inc. better known as Organa Brands.

Florida is quickly establishing itself as a significant cannabis market in the U.S.  The state has registered over 180,000 medical cannabis patients, a number that has tripled since 2017. According to the Florida Department of Health, Trulieve is responsible for consistently producing and distributing between 60% and 80% of cannabis in the state. The company has 24 dispensaries and home delivery available throughout the state.

“Great partnerships and collaboration are foundational to SLANG’s culture, scalability, and growth strategy,” said SLANG’s CEO Peter Miller. “Not only does Trulieve operate one of the most impressive cannabis cultivation and distribution businesses in Florida, they also share SLANG’s commitment to bringing leading cannabis products to consumers. Every year, SLANG products deliver millions of high-quality cannabis experiences to consumers around the world and, in partnership with Trulieve, we look forward to providing those same exceptional cannabis products to Florida’s patients.”

As a result of the partnership, SLANG will introduce the O.penVAPE, Bakked, District Edibles, and Magic Buzz product lines to Florida medical patients. The company said that the availability of edible products will be subject to regulatory approval by the Florida Department of Health. As part of the agreement signed by the two groups, SLANG will collaborate with Trulieve with regard to the production and distribution of the SLANG portfolio of products, offering in-house training to staff in preparation for production and distribution exclusively through Trulieve.

“SLANG operates with the same goals as Trulieve, working to expand patient access and create products that are high-quality, consistent, and reliable,” said Trulieve CEO Kim Rivers. “SLANG’s expansive portfolio ranges from vaporizer cartridges to edibles to concentrates, all products that will provide Florida’s patients with the effective, natural relief they’re seeking in ways that are innovative and fresh.”

According to an Arcview report titled the State of Legal Marijuana Markets, Florida is estimated to have 550,000 legal potential consumers by 2022. It is projected to reach $1.7 billion in legal spending by the year 2022. The report also stated that medical cannabis sales are expected to reach $456 million in 2018, up from $192 million in 2017.

 

 


Debra BorchardtDebra BorchardtNovember 19, 2018
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3min8023

Florida’s Trulieve (CSE: TRUL) (TCNNF) reported that its third-quarter revenue came in at $28.3 million, a 21% sequential increase and 42% increase over last year’s revenue of $19.8 million for the same time period. The net income increased 386% to $17.5 million versus last year’s net income of $3.6 million for the same time period.

“These outstanding results in Q3 demonstrate the meaningful progress we’ve made on our strategic plan since becoming a publicly-traded company in September,” said Kim Rivers, CEO of Trulieve. “Looking ahead, we remain focused on scalable growth, including multi-state operational expansion.”

Following the end of the quarter, Trulieve announced that it was moving beyond the Florida market by making acquisitions of Life Essence, Inc. and Leef Industries, LLC., based in Massachusetts and California respectively.

“Trulieve’s market-leading brand experience continues to result in high patient retention as we deliver consistent, high-quality products, supported by predictive analytics and industry-leading outreach while advocating for patients and physicians,” Rivers continued. “We believe we are well-positioned in continuing to be the dominant leader in the Florida market while firmly establishing our footprint in the Massachusetts and California markets moving forward.”

New Acquisitions

Trulieve is paying approximately $4.1 million for Life Essence, Inc., which includes $3.9
million to be paid over time upon specific locations being approved by the state of Massachusetts. The acquisition will be financed with cash on hand and is expected to close within 60-90 days
when certain regulatory approvals are received.

The company also paid  approximately  $4.0 million for Leef Industries, LLC and this
acquisition will be financed with cash on hand. It is expected to close within 30-60 days
when certain regulatory approvals are received.

The cash and cash equivalents at the end of the quarter were $42.1 million.

Stock Performance

Trulieve stock was lately trading at $12.40 on the OTC Markets. The 52-week low was $7.89 and the year high was $21.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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