In life, just as in the cannabis investment sector, there are accepted rules and then there are the exceptions that prove those rules. There is such an exception in the cannabis space Trulive Cannabis Corp (OTC:) , (CSE :), a growing cannabis grower in Florida. But here is the turn: this exception may be an indication of a broader trend that will soon abolish its exceptional status and become the new rule.
Let us first take the generally accepted rule: most cannabis shares lost much of their value in the second half of 2019. The stock performance of the big names in the sector is indeed disastrous. Just look at the year-on-year statistics: Canopy Growth Corp (NYSE :), (TSX 🙂 –40%, Cronos Group Inc (NASDAQ :), (TSX 🙂 –47%, Aurora Cannabis Inc (NYSE :), (TSX 🙂 –57%, Aphria Inc (NYSE :), (TSX 🙂 –10%, Tilray Inc (NASDAQ 🙂 –81%.
Trulieve is a striking exception to this rule. With a market capitalization of US $ 1.93 billion, this vertically integrated, medicinal cannabis grower has seen its share price rise by 60.73% until 2019.
Trulieve weekly rate chart
The upward trajectory has accelerated its pace over the past three months as the company's share price rose on August 30 from US $ 7.88 (C $ 10.44) to close slightly yesterday at US $ 13.09 ( C $ 17.27), an estimated 66% increase.
Trulieve claims to have 55% of the medical marijuana market in Florida, the third most populated state in the US expand. It offers a wide range of cannabis-based merchandise that includes nearly 300 products.
The company is also moving to other markets. It has obtained licenses for opening pharmacies in Connecticut, California and Massachusetts. It has grown slowly and steadily since 2015 and has avoided the huge pitfalls of rapid expansion that other larger cannabis companies are now suffering. And although it is traded on both the US OTC markets and the Canadian stock exchange, it has limited its footprint to a relatively smaller playing field that is focused only on the United States. This could be the trend that emerges as the most successful route with which Trulieve can be seen as one of the few big winners in the short term if the calendar flips to 2020.
Not all 2.0 products come out for Christmas
Some cannabis 2.0 products will be for sale in Canada before Christmas, but not all.
Last week, the Auxly Cannabis Group Inc (OTC :), (TSXV 🙂 said that its infused products will be available for retail sale from December 16. In a statement from the Vancouver-based company, Auxly has announced that it has reached agreement with nine of the 10 Canadian provinces and will launch 83 derived products, including vapors, chocolates, chewable tablets and topical products.
"This is an important milestone for us," said Hugo Alves, CEO of Auxly. He expanded and said:
“Our team has been working on launching our derivatives portfolio for more than 20 months and sees the hugely positive responses to our carefully developed brands and products from provincial buyers, our distribution partner, Kindred and consumer focus groups. extremely satisfying and motivating for the entire Auxly family. It is a huge achievement to be ready for commercialization on the first day across the country – it speaks to the talent and dedication of our people and our organization-wide focus on winning in the cannabis 2.0 market. "
Auxly shares were not affected by last Thursday's announcement and have since fallen slightly to close slightly at US $ 0.4680 (C $ 0.63) yesterday. It will be interesting to see if early access to the 2.0 market will move the needle on the stock price.
While a smaller producer such as Auxly 2.0 continues, the cannabis giant, Canopy Growth, has announced that it will not offer its range of 2.0 products until January 2020. Canopy will start marketing its cannabis chocolate bars and infused drinks.
New CEO appointed at Canopy
Meanwhile, Canopy shares made a substantial leap yesterday, with around 14% on the day on the news that David Klein was appointed CEO from January. The move is seen as the company's main shareholder, US-based beer maker Constellation Brands (NYSE :), who better understands the reins of the Canadian pot producer. Last October, Klein, who was responsible for finance at Constellation, was appointed chairman of the Canopy Board of Directors. Next month he will replace Mark Zekulin, who was the only CEO after co-CEO Bruce Linton was expelled last summer.
Canopy shares were closed for US $ 21.29 (C $ 28.16) yesterday.
