The US is Canada 5 years Ago
The regulatory framework and competitive playing field in America looks very similar to where Canada was in 2013.
While ten states have full recreational marijuana markets, the majority of states only approve medical marijuana prescriptions.
Medical only states limit the number of licensed producers, similar to Canada, creating artificially high market share and profits for companies who win one of the coveted licenses.
Being early also lets a company build brand awareness with consumers so they can carve out a share of the market when competition is less fierce.
With Canadian capital markets wide open to fundraising, US operators are scrambling to go public in Canada to raise the money they need for expansion across the US.
The regulatory landscape has never looked better in America with two major cannabis prohibitionists (Attorney General Jeff Sessions and House rules chair Pete Sessions) both out of office this week.
Investors can benefit by buying the stocks of U.S. operators early when they are just beginning to ramp up greenhouses, stores and cashflow.
All of these companies are playing for the big prize which is countrywide US recreational legalization, which Grizzle thinks could happen by 2020 or 2021.
How to Use This Guide
This guide should serve as a comprehensive reference point to understand Canadian-listed operators with US assets.
Investor interest is switching from established Canadian LPs to up-and-coming US operators, and there is money to be made from being an early investor in these fast-growing companies.
Our guide will allow you to track and understand the business models of the Canadian-listed US cannabis operators as well as those soon to list.
We show you what cannabis verticals they operate in, the market cap as well as simple valuation metrics (where available) so you can quickly see how the market prices different business models.
Simple 2019 Price-to-Sales Multiples for Public US Cannabis Companies
The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.