Florida’s cannabis market is about to be unleashed and I think this early industry leader is ready to cash in on the booming trend.
Back in 2016, Florida created a law that restricted state cannabis companies to operating 25 dispensaries. That cap was designed to expand as the number of medical cannabis patients increased. Today, the cap stands at 35.
However, in a recent and major legal victory, this cap is about to be wiped out.
The largest cannabis company in Florida now plans to expand from 27 dispensaries to 49.
This sets the stage for this early industry leader, and Florida’s cannabis market to accelerate big time. That’s really saying something, because Florida is already one of the fastest-growing cannabis markets in the US, seeing huge gains in 2018.
Here are some statistics from mjbizdaily.
- The number of active patients has nearly tripled from 56,537 as of Dec. 1, 2017, to 159,107 as of Dec. 7, 2018.
- The number of dispensaries has risen from 24 to 78 in the past year.
- MMJ sales via dispensaries are expected to total $200 million-$300 million in 2018, according to projections in the Marijuana Business Factbook 2018, up considerably from an estimated $20 million-$40 million in 2017.
- With Florida easing its restrictive dispensary laws, the stage is set for its cannabis market to grow even more. This young cannabis company looks to be in prime position to capitalize.
This early industry leader is:
- The largest cannabis company in the state.
- Already operates 27 dispensaries.
- Expanding into California and Massachusetts.
Trulieve Cannabis Corp (TRUL, TCNNF) is a multi-state, vertically integrated cannabis company operating in Florida, California and Massachusetts. Truelieve is a major operation – the company has a market cap of $1.7 billion, making it one of the largest cannabis companies in the US.
Shares of Trulieve began trading on the Canadian Securities Exchange in September of 2018 under the ticker symbol TRUL. I see average daily trading volume of 500,000 so this ticker is plenty liquid.
Shares also trade in the US in over-the-counter (OTC) markets under the ticker symbol TCNNF. I see average daily trading volume of 170,000 shares so this ticker is plenty liquid as well.
Trulieve is the Clear Market Leader in Florida
The thing that makes Trulieve so interesting? Its dominance of the Florida cannabis industry. Truelieve is the largest cannabis player in Florida – the company estimates that it owns 65% market share with its 27 dispensaries.
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While that impressive on its own, Truelieve is about to extend its lead in Florida. Trulieve just won a major legal battle that will allow it to expand to 49 dispensaries. Here are some more details from TCPalm.com.
Folks looking for medical marijuana can expect to see a new crop of Trulieve Cannabis outlets opening up around the state after getting the green light from the state Department of Health to open up to 49 dispensaries.
Trulieve and the DOH entered into a settlement agreement that excludes the 14 dispensaries Trulieve opened before a statutory cap was imposed by the Legislature based on the number of people registered to receive medical marijuana.
The agreement ends a lawsuit Trulieve filed against DOH, and comes two months after Circuit Judge Karen Gievers ruled the cap unconstitutional. The state will drop its appeal of Gievers’ ruling.
I expect Trulieve to make a big push to expand its dispensary count to 49 locations. That should be great for sales and help the company expand on its dominant lead in the high-growth Florida cannabis industry.
Trulieve is Rallying on the Chart
Trulieve has been rallying on the chart. Shares are up more than 100% since hitting a 52-week low in late December. The 52-week high just above $17 is less than 20% away.
The Big Picture on Trulieve
Truelieve is the largest cannabis company in Florida and the clear market leader. The company just scored a big legal victory that will enable it to expand its dispensary count to 49 from 27. That should help the company solidify its lead in Florida’s high-growth cannabis market.
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