Higher revenue from US-based MSOs could close the valuation gap between companies in the US and their Canadian counterparts.
During earnings season for the cannabis sector, some US-based companies are taking aim at Canadian marijuana firms, claiming that poor results from their neighbors to the north have driven down the entire industry.
The US cannabis market continues to trend towards rapid growth, with two multi-state operators (MSOs) putting up impressive numbers with the release of their quarterly results this week.
Growing revenue generation from US-based MSOs is something some analysts have suggested could close the valuation gap between companies in the US and their Canadian counterparts in the face of recent middling results from Canada’s cannabis giants.
Trulieve maintains grip on Florida cannabis market
Florida-based Trulieve started the trading day on Monday (November 18) on a positive note, up 2.6 percent to C$15.34 per share as of 11:30 a.m. EST.
The firm reported quarterly revenue of US$70.7 million, representing 22 percent quarter-over-quarter growth from the US$57.9 million it generated in Q2 2019.
The results exceeded analysts’ expectations, according to BNN Bloomberg.
The company also saw 19 percent growth in its patient numbers, attributed largely to the legalization of smokable flower, while also expanding its footprint across its home state with the addition of six more dispensaries in Florida.
During a call with investors and analysts, CEO Kim Rivers said while the firm is interested in increasing its market share across the US, it “will not grow for growth’s sake.” This decision has