The United States of Cannabis – A Grizzle & CB1 Compendium to Cannabis Investment in America: US Cannabis Stocks
Cultivation & Retail
iANTHUS CAPITAL HOLDINGS INC
Ticker: CNSX: IAN
States: 10
Market Cap: $1,617MM
Price/Sales: 8x
Company Description
iAnthus is one of the largest vertically integrated growers in America. The company owns cultivation licenses in 10 states (MA, NY, Fl, AZ, CA, NV, MD, VT, CO, NM) and has plans to have 30 dispensaries open by the end of 2019.
Investment Thesis
iAnthus presents a compelling opportunity to own a first mover in acquiring medical licenses and building brand awareness nationwide. Valuation is on the low end of the group giving investors a low-cost way to play federal cannabis legalization.
MEDMEN ENTERPRISES
Ticker: CNSX: MMEN
States: 12
Market Cap: $4,797MM
Price/Sales: 8x
Company Description
MedMen is the second-largest vertically integrated operator in the US and has operations in 12 states (MA, NY, FL, MI, OH, AZ, CA, NV, IL, MD, VA, PA). MedMen will have 23 dispensaries open by YE 2019.
Investment Thesis
MedMen has the most recognized cannabis brand in America and is the market leader in many rec markets. An expansion into medical states will position the company well to capitalize on federal legalization.
CURALEAF
Ticker: CNSX: CURA
States: 12
Market Cap: $4,270MM
Price/Sales: 22x
Company Description
The third largest vertically integrated grower in America with operations in 12 states (MA, NJ, NY, FL, AZ, NV, MA, PA, CT, ME, OR, MD) throughout the eastern US.
Investment Thesis
Curaleaf is a firstmover in building a cohesive cannabis brand nationwide. The company’s large footprint will enable it to capture a leading market share when the US legalizes cannabis on a federal level.
ACREAGE HOLDINGS
Ticker: CNSX: ACRG
States: 14
Market Cap: $3,557MM*
Price/Sales: 9x
Company Description
Acreage is the largest US operator with assets in 14 states (NJ, NY,
FL, AZ, CA, NV, IL, MD, PA, CT, ME, OR, CO, WA) and 55 dispensaries
planned over the next few years. Acreage has former speaker of the
house John Boehner and former Canadian prime minister Brian
Mulroney sitting on its advisory board.
Investment Thesis
Acreage is in a unique position to exert significant political influence in America. We believe that will translate into above average opportunities to penetrate emerging legal cannabis markets across the country. The strong management team will also provide the company with a big advantage raising capital versus peers.
GREEN THUMB INDUSTRIES
Ticker: CNSX: GTII
States: 8
Market Cap: $2,769MM
Price/Sales: 20x
Company Description
Green Thumb is one of the largest operators in the US, with key positions in 8 states (MA, NY, FL, OH, NV, IL, PA, MD) and 55 dispensaries planned in their current markets.
Investment Thesis
Green Thumb is a play on eventual US federal legalization of cannabis. The company’s large footprint will allow it to build strong brand awareness and capture a piece of the multi-billion dollar recreational cannabis market.
CRESCO LABS
Ticker: 4Q 2018
States: 6
Market Cap: $2,250MM*
Price/Sales: –
Company Description
Vertically integrated grower operating greenhouses and medical dispensaries in 6 states (OH, AZ, CA, NV, IL, PA) with plans to open 55 dispensaries over time.
Investment Thesis
Cresco is a first mover in US cannabis markets and is a play on US federal legalization of cannabis. Cresco has the former global creative director of Nike on the team to build the brand and curate the consumer experience.
TILT
Ticker: TBD
States: 2
Market Cap: $1,850MM*
Price/Sales: –
Company Description
Tilt is a diversified cannabis company with greenhouses, retail, construction services, and a data software provider for dispensaries. Tilt sells cannabis in MA and has plans to construct 12 dispensaries thus far.
TRULIEVE
Ticker: CNSX: TRUL
States: FL
Market Cap: $1,738MM
Price/Sales: 7x
Company Description
Solely operating in Florida, Trulieve owns a large share of the market and intends on entering additional states in 2019. Trulieve will have 30 dispensaries open in Florida by YE 19′. Trulieve owns one of the most impressive current retail footprints in the state.
Investment Thesis
Trulieve is the market leader in Florida with a brand that resonates with consumers and already generates significant cashflow. Planned expansion will allow the company to capitalize on future federal legalization.
HARVEST ENTERPRISES
Ticker: 4Q 2018
States: 10
Market Cap: $1,350MM*
Price/Sales: –
Company Description
Vertically integrated grower operating greenhouses and medical dispensaries in 10 states (MA, FL, OH, AZ, CA, NV, PA, MD, ND, AK), with plans to enter 3 more states in the short-term and open 97 dispensaries total.
VIBE BIOSCIENCE
Ticker: 4Q 2018
States: CA
Market Cap: $631MM*
Price/Sales: 12x
Company Description
Vertically integrated grower operating two greenhouses and three medical dispensaries in California. Creator of the Zing mobile cannabis delivery app.
LIBERTY HEALTH SCIENCES
Ticker: CNSX: LHS
States: 3
Market Cap: $507MM
Price/Sales: 7x
Company Description
Liberty Health Sciences currently operates in 3 states (MA, FL, OH) and is a partner of Aphria, one of the largest Canadian operators. LHS currently projects 21 dispensaries for FL/MA by YE ’20.
AUSTRALIS CAPITAL
Ticker: CNSX: AUSA
States: 3
Market Cap: $278MM
Price/Sales: –
Company Description
Spin-off from Aurora Cannabis. Owns 24 acres of land in Washington, 42% of a Nevada and Ohio grower and is currently waiting for a cultivation license in Michigan.
SCYTHIAN BIOSCIENCES
Ticker: CNSX: SOL
States: 4
Market Cap: $151MM
Price/Sales: 5x
Company Description
Vertically integrated grower operating greenhouses and medical dispensaries in 2 states (OR, CA).
4FRONT
Ticker: TBD
States: 4
Market Cap: $140MM
Price/Sales: –
Company Description
4Front is one of the smaller operators by addressable market and market cap, with operations in 4 states (MA, NV, MD, PA) and 11 dispensaries planned for current markets.
1933 INDUSTRIES
Ticker: CNSX: TGIF
States: NV
Market Cap: $123MM
Price/Sales: 4x
Company Description
Vertically integrated Nevada producer with plans to expand into 5 more states. Also owns a cannabis security logistics company and sources CBD to produce CBD-based products.
GROWN ROGUE
Ticker: TBD
States: 2
Market Cap: $49MM*
Price/Sales: –
Company Description
Vertically integrated grower operating greenhouses and medical dispensaries in 2 states (OR, CA).
DIXIE BRANDS
Ticker: 4Q 2018
States: 4
Market Cap: –
Price/Sales: –
Company Description
Vertically integrated grower operating greenhouses and medical dispensaries in 4 states (CA, NV, MD, CO).
ZEN LEAF/VERANO
Ticker: TBD
States: 4
Market Cap: –
Price/Sales: –
Company Description
Vertically integrated grower operating greenhouses and medical dispensaries in 4 states (FL, IL, NV, MD). Dispensaries operate under the “Zen Leaf” brand.
CBD CULTIVATION & PRODUCTS
CHARLOTTE’S WEB
Ticker: CNSX: CWEB
States: 2
Market Cap: $1,838MM
Price/Sales: 12
Company Description
Grower of hemp and manufacturer of assorted CBD products. Products are distributed throughout the western US and sold online.
ELIXINOL
Ticker: ASX: EXL
States: –
Market Cap: $95MM
Price/Sales: –
Company Description
The Elixinol Group operates in the industrial hemp and medicinal cannabis industries. They manufacture hemp-based dietary supplements and skincare products.
PHIVIDA
Ticker: CNSX: VIDA
States: –
Market Cap: $44MM
Price/Sales: –
Company Description
Phivida is a functional food and beverage company that infuses active hemp extract into a variety of consumable end products.
EDIBLES & OILS
PLUS PRODUCTS
Ticker: CNSX: PLUS
States: CA
Market Cap: $185MM
Price/Sales: 16x
Company Description
Widely distributed edibles manufacturer operating out of California. Main product is an infused gummy under the PLUS product line.
CANNABIS CONSORTIUM
Ticker: OTCMKTS: BDCI
States: 15
Market Cap: $45MM*
Price/Sales: –
Company Description
Cannabis Consortium operates in 12 states as well as in Canada, Brazil, Colombia, and Spain. Currently owns a sizable portion of the Florida market and expanding into California with Texas presenting a large future opportunity.
BHANG CORPORATION
Ticker: 4Q 2018
States: 4
Market Cap: –
Price/Sales: –
Company Description
Bhang Corporation manufactures and distributes three tiers of products (edibles, hemp-derived CBD, and Terpenes) in over 1,000 retail locations nationwide.
EQUIPMENT SUPPLIERS
KUSHCO HOLDINGS
Ticker: OTCMKTS: KSHB
States: CA
Market Cap: $463MM
Price/Sales: 5x
Company Description
Provider of packaging, supply, branding, vape, and extraction gas sales to the cannabis industry. Headquartered out of Garden Grove, California.
BLACKLIST HOLDINGS
Ticker: 4Q 2018
States: 3
Market Cap: $50MM*
Price/Sales: –
Company Description
Washington-based vape pen and cartridge provider. Products are distributed in three states (WA, OR, CA). Owner of the IONIC brand of vape pen.
URBAN GRO
Ticker: TBD
States: CO
Market Cap: $25MM*
Price/Sales: –
Company Description
Colorado-based provider of cultivation equipment. An integrated service provider that handles lighting, irrigation, climate control, pest control, and the installation of harvesting equipment.
XTRACTION SERVICES
Ticker: 4Q 2018
States: 4
Market Cap: –
Price/Sales: –
Company Description
Provider of cannabis extraction services that extracts cannabis oil on demand for clients and also leases out extraction machines and provides equipment financing.
* Grizzle estimate of market capitalization as companies are not yet public.
Disclaimer: CB1 Capital may have positions, from time to time, in one or more of the companies mentioned above. Where indicated, Grizzle has positions in the companies mentioned above.
