CuraLeaf – Structure and Current State – 05/19

As one of the most ‘MSO’ of all of the MSO’s - Curaleaf is in at least 13 states to varying degrees. Their presence in each ranges from simply providing management services to existing dispensaries/cultivators, all the way to complete vertical integration: This outfit undeniably has a broad footprint in the US cannabis space. Despite some effusive coverage from the regular financial types (that regurgitate news releases and paraphrases MD&A's), I've never swooned so much for them. Bold moves into new territory and expanding ops and product lines is one thing. Actually making money at it is another. The deal with CVS to provide…

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WeedMD 1Q F2019 – March 31, 2019 “In Pictures”

Income Statement Drivers and Breakeven: Trend Sales up 14%... but the worrisome concern is that 73% by KG of Wholesale ($3.3 million) or 20% by Wholesale revenue (as per conference call) went to Extract Grade.  That means Adult rec was only $660k.  Soof the $3.6 million in sale $2.6 million (72%) went to an extractor. I know WMD has a reputation for good product. I have tried some of it and was suitably impressed.  But the amount of product that likely lacked bag appeal at this stage of their development should be monitored going forward. They are launching a new rec brand next Thursday…

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WeedMD – Structure & Current State – 05/19

‘Ambitious’ is a good word to describe WeedMD, an outfit splayed across the value chain that’s seeking to be a significant player in extraction with the recent announcement of converting one of their production sites into a dedicated processing facility.  While this move has the feel of a pivot (hey - who would abandon a perfectly good grow facility to build a refinery?) - perhaps it’s part of their longer term strategy. I ran their last financials way back on May 1st - time to see what these latest bring to WeedMD’s story. To the financials! ___________________________________ ‘On the cusp’ of recognizing ‘significant economies…

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Trulieve – Structure & Current State – 05/19

Florida is somewhat of a unique creature amongst the States with cannabis. Until recently, it was a ‘non-combustion’ state - which meant no flower was offered for sale. Vape and extracts only kind of thing. Trulieve was selling vape-capable cups with milled cannabis in them - which led people to buying the cups, opening them, and rolling joints. They are expensive though, and this was definitely a ‘hack’ for those who simply just want a joint.  The state has since adapted the rules to allow for smoking (in March). But. Consumption of cannabis is still restricted to medical, and the licensing requirements (as I…

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MedMen – Structure & Current State – 05/19

A brief 5 months ago, we had a look at MedMen, and saw a pretty leveraged outfit with a relatively ornate capital structure, an M&A fetish, lots of cash, and a hankering (or at least a stated desire) to take over the world. They’ve had some turmoil at the executive level with allegations and counter allegations of skullduggery, and other outfits have noticed the complexity of their corporate alignment. Seeking Alpha took a stab at demystifying it, and it’s not a bad job in honesty. They miss a couple of things, but for the most part it’s a decent summary  I don’t look forward…

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