Hurricane Ian Takes Its Toll On Cannabis Stocks: Trulieve, Verano, Ayr Wellness Closing Stores

One of the most powerful storms to hit the United States, Hurricane Ian, is taking its toll on marijuana operators as well. Logically.

So far, more than 100 cannabis businesses in Florida were closed on Thursday, as its operators determined there is a high safety risk for its staff, risk of flooding, destruction, and power outages, reported Marijuana Business Daily.

According to the data obtained by the outlet and provided by the Florida Office of Medical Marijuana Use, The National Hurricane Center, more than half of the Sunshine State’s 485 medical marijuana dispensaries are positioned on what is expected to be a direct course of heavy rainfalls and storms.

Large MSOs Updates

Trulieve Cannabis TCNNF, the biggest marijuana dispensary operator in Florida was forced to close almost 60 of its dispensaries in the state, according to Thursday data from the company's website.

On Friday morning, the company CEO, Kim Rivers, tweeted a message that 88 stores will be open during regular hours, adding there’s been no damage to cultivation and processing operations.

Good morning! 88 @Trulieve Florida stores will open this morning regular business hours. The remaining will open as we get power and/or cell service and it is safe in the area to do so. Zero impact to grows or processing. We have an amazing team! #ByeIan

— Kim Rivers (@rivers_kim) September 30, 2022

Another large cannabis multistate operator, Verano Holdings VRNOF, temporarily shut down around 30 of its 59 cannabis shops, after which it has reopened seven and closed two more. According to the company’s latest update from Thursday night, 16 stores are closed.

Miami-based multistate operator Ayr Wellness AYRWF revealed Thursday morning that it had to close 39 of its 51 dispensaries. A couple of hours later, the company confirmed the reopening of the following dispensaries: Dania Beach, Port St. Lucie, Stuart, and West Palm Beach.

After confirming with our in-store teams, the following dispensaries are safe and will be open today, September 29th: Dania Beach, Port St. Lucie, Stuart, and West Palm Beach. Stay tuned for updates on the reopening of our remaining dispensaries. #hurricaneian pic.twitter.com/nYcG6uDfXf

— Liberty Health Sciences (@LibertyHSInc) September 29, 2022

For Sevi Borrelli, the company’s vice president of retail in Florida, the top priority is the safety of its 700 employees.

“Our regional managers have been checking in with their associates, and we are close to accounting for all Florida employees,” Borrelli told Marijuana Business Daily.

“We’d like to give a shout-out to our team on the ground in Florida who did a great job preparing for the storm and ensured we navigated the storm safely,” he said. “Providing patients with access to their medicine is always a key focus, and our teams are hard at work creating a reopening strategy.”

As per the analysis by Core Logic, published Monday, around 1 million properties on Florida’s west coast including Naples and Punta Gorda, could sustain significant damage caused by Hurricane Ian, totaling $258 billion in replacement costs.

During a Federal Emergency Management Agency briefing Thursday, President Joe Biden said that this could be “the deadliest hurricane in Florida history.”

Price Action

Trulieve shares closed Thursday market session 5.36% down at $8.66 per share.

Verano shares also plunged 6.15% by the end of Thursday's session, closing at $4.58 per share.

Ayr Wellness shares dropped 1.43% on Thursday with a closing price of $2.41 per share.

Photo: Courtesy of Wikimedia Commons and gerald by Pixabay