Option chain shows key data for Trulieve Cannabis's stock options at various strike prices and expiration dates. Traders use this information to analyze potential trades and assess market sentiment for Trulieve Cannabis.

Trulieve Cannabis (OTC:TCNNF) Stock, Option Chain

Trulieve Cannabis

Trulieve Cannabis Corp is a vertically integrated seed to sale and fully licensed medical marijuana company. It is mainly engaged in the cultivation, possession, use, sale, and distribution of medical cannabis.

Trump.cannabis.Shutterstock

Cannabis

Government

News

Regulations

Politics

Legal

CRLBF

TCNNF

&#34;Our new combined organization will best position the industry to help the President get them over the finish line,&#34; says Trulieve CEO Kim Rivers.

&#39;President Trump&#39;s Endorsement Represents A Sea Change In Cannabis Policy,&#39; Says Trulieve CEO As Advocacy Groups Join Forces

Florida-Cannabis copy

Markets

ETFs

GTBIF

MSOS

TLRY

YOLO

Group behind failed attempt to legalize recreational cannabis in FL has launched new initiative for 2026 ballot. Allows adult use with limits and restrictions.

Cannabis Legalization Headed For The Ballot Again In Florida: Advocates Launch New Amendment Initiative

DEA -Benzinga31 copy

Equities

Specialty ETFs

Small Cap

Movers

AAWH

CURALEAF HLDGS INC by Curaleaf Hldgs Inc.

CURLF

TSNDF

VRNOF

DEA judge orders agency to respond to allegations of opposing marijuana rescheduling and improper communication with opponents. Cannabis stocks declined in 2024 due to concerns about DEA review.

DEA Accused Of Bias In Cannabis Rescheduling Hearings: Weed Stocks Plummeted In 2024 As Process Drags On

TRULIEVE CANNABIS CORP by Trulieve Cannabis Corporation

Trulieve Cannabis Corp

The National Cannabis Roundtable (NCR) and U.S. Cannabis Council (USCC) announced a merger, uniting their efforts to represent leading multi-state and single-state cannabis operators, retailers, ancillary businesses and advocacy organizations on Capitol Hill.
The U.S. Cannabis Roundtable, the result of this merger, will serve as a unified voice for the cannabis industry, addressing the newly sworn-in 119th Congress and the incoming Trump administration. This consolidated organization will represent businesses operating in 38 states, as well as a significant portion of the 13,000 retail locations and nearly 450,000 full-time employees within the state-licensed cannabis sector.
"This is a pivotal time for the regulated&nbsp;cannabis&nbsp;industry with a newly elected Congress and an incoming president who has publicly supported and pledged to advance commonsense cannabis reform," said Charlie Bachtell, CEO of Cresco Labs Inc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#OTC">CRLBF</a>) and chairperson of both NCR and USCC. 
"As the chairman of both groups, I have seen first-hand the incredible talent of each organization and know that the combined group will be the unified authority advocating on behalf of the legal&nbsp;cannabis&nbsp;industry and a resource on all things&nbsp;cannabis&nbsp;for members of the Trump Administration and Congress."
During his 2024 presidential campaign, Trump supported a states' rights legislative approach to cannabis, including reclassifying it from Schedule I to Schedule III and backing the <a href="https://www.benzinga.com/topic/safe-banking-act">SAFE Banking Act</a> — key priorities for NCR and USCC.
"President Trump's endorsement represents a sea change in&nbsp;cannabis&nbsp;policy and advocacy," said Kim Rivers, CEO of Trulieve Cannabis Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) and vice chair of NCR. "For the first time in history, a Republican president endorsed these initiatives, and our new combined organization will best position the industry to help the president get them over the finish line."
NCR and USCC will deploy an advocacy team including former members of Congress and a former Trump senior advisor, among others. The cannabis priorities of the organization and its advocates focus on reform initiatives and will include:
●&nbsp;&nbsp;&nbsp;&nbsp; Rescheduling&nbsp;cannabis&nbsp;to Schedule III
●&nbsp;&nbsp;&nbsp;&nbsp; Passing states' rights legislation that allows each state to make its own decision on&nbsp;cannabis&nbsp;policy
●&nbsp;&nbsp;&nbsp;&nbsp; Enacting&nbsp;cannabis&nbsp;Banking Legislation (the SAFE/SAFER Banking Act)
●&nbsp;&nbsp;&nbsp;&nbsp; Ending the scenario that allows foreign&nbsp;cannabis&nbsp;companies to list on the NASDAQ and NYSE while prohibiting state-licensed U.S.&nbsp;cannabis&nbsp;companies from doing the same.&nbsp;
Now Read: &nbsp;
<ul>
<li><a href="https://www.benzinga.com/news/financing/25/01/43041605/25-billion-and-counting-safe-harbor-financials-decade-of-keeping-cannabis-industry-in-the-green-as-banks-remain-banned-from-touching-marijuana-money">$25 Billion And Counting: Safe Harbor Financial&#8217;s Decade Of Keeping Cannabis Industry In The Green As Banks Remain Banned From Touching Marijuana Money</a></li>
</ul>
Photos: Shutterstock

'President Trump's Endorsement Represents A Sea Change In Cannabis Policy,' Says Trulieve CEO As Advocacy Groups Join Forces

Safe &amp; Smart Florida, the group behind Florida&#8217;s failed attempt to legalize recreational cannabis in November 2024, has <a href="https://smartandsafeflorida.com/">launched a new initiative</a> to do it again in a 2026 ballot.
The "Adult Personal Use of Marijuana," initiative was filed on Tuesday, first <a href="https://floridapolitics.com/archives/715832-recreational-pot-supporters-launch-fresh-campaign-to-put-new-measure-on-the-ballot/">reported</a> by Florida Politics, noting that it was the first ballot petition filed in 2025.
The new initiative "Allows adults 21 and older to possess, purchase, or use marijuana for non-medical consumption. Establishes possession limits. Prohibits marketing and packaging attractive to children. Prohibits smoking and vaping in public. Maintains prohibition on driving under influence,&#8221; and more. 
Florida Politics pointed out that the campaign launched this new effort to put legal marijuana up for a vote just one day after Gov. <a href="https://www.benzinga.com/topic/ron-desantis" target="_blank" rel="noreferrer noopener">Ron DeSantis</a> called a special session asking lawmakers to crackdown on &#8220;fraudulent signatures&#8221; to place amendments on the ballot. Leaders of the legislature, per the outlet, said they do not intend to allow DeSantis &#8220;to dictate what issues are ultimately considered by lawmakers.&#8221;
This past November, the ballot measure, known as Amendment 3, <a href="https://www.benzinga.com/markets/cannabis/24/11/41763514/florida-rejects-cannabis-legalization-amendment-supported-by-trump-detested-by-desantis">fell short </a>of the 60% vote required to pass an amendment in Florida though it received nearly 57% support across the state. The amendment faced tough and sustained opposition from DeSantis&nbsp;and the Florida Republican Party.
Over the course of its efforts, Smart &amp; Safe&#8217;s legalization campaign pulled in at least $150 million, making it the&nbsp;<a href="https://www.benzinga.com/markets/cannabis/24/06/39565658/desantis-anti-cannabis-florida-freedom-fund-raises-barely-a-fraction-of-legalization-committees-" target="_blank" rel="noreferrer noopener">best-funded cannabis legalization</a>&nbsp;initiative in U.S. history, with medical marijuana giant&nbsp;Trulieve Cannabis Corp. (OTC:&nbsp;TCNNF) contributing the bulk of it.
<h1 class="wp-block-heading">Cannabis Stocks Respond</h1>
Cannabis stocks, which had dropped slightly on news that the DEA hearings on rescheduling cannabis <a href="https://www.benzinga.com/25/01/42972524/dea-judge-cancels-marijuana-rescheduling-hearing-amid-disturbing-allegations-of-improper-conduct">were put on hold</a> for three months, seemed to perk up a bit with the Florida initiative news.
ETFs such as AdvisorShares Pure US Cannabis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSOS#NYSE">MSOS</a>) rose 0.29% and AdvisorShares Pure Cannabis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YOLO#NYSE">YOLO</a>) went up 0.87% at the close. Trulieve Cannabis ended down 2.23% while Green Thumb Industries (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>) rose 0.28%. Tilray Brands (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLRY#NASDAQ">TLRY</a>) held steady. Other multi-state operators seemed unfazed by the news, at least for now.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/42972524/dea-judge-cancels-marijuana-rescheduling-hearing-amid-disturbing-allegations-of-improper-conduct">DEA Judge Cancels Marijuana Rescheduling Hearing Amid &#8216;Disturbing&#8217; Allegations Of Improper Conduct</a></li>
</ul>
Photo: El Planteo

ALEAFIA HEALTH INC ORD by Aleafia Health Inc.

ALEAF

AUSAF

AVTBF

AYRWF

BBRRF

BHHKF

BLOZF

BMMJ

CANN

CBDY

CBMJ

CANNABIS WHEATON INCOME by Cannabis Wheaton Income Corp.

CBWTF

CHOOF

CLSH

CLVR

CNBS

CNBX

CNGGF

CNPOF

CNTMF

CNVCF

CPHRF

CRON

CURE PHARMA HLDG CORP by CURE Pharmaceutical Holding Corp.

CURR

CVHIF

CVSI

CWBHF

CANNIBIS GROWTH OPTY CORP by Cannabis Growth Opportunity Corp.

CWWBF

CXXIF

ELLXF

EMOR

ETST

EVIO

FFLWF

FFNTF

FUTURE FARM TECHNOLOGIES by Future Farm Technologies Inc.

FFRMF

FLGC

FLOOF

FLWPF

FINCANNA CAPITAL CORP by Fincanna Capital Corp.

FNNZF

FUAPF

GABRIELLAS KITCHEN INC by Gabriella's Kitchen Inc.

GABLF

GBHPF

GENE

GHBWF

GLASF

GNLN

GRAMF

GRNH

GRWG

GREEN SPIRIT INDUSTRIES by Green Spirit Industries Inc.

GSRX

HBOSF

HEMP

HERTF

HHPHF

HMLSF

IIPR

INCR

INLB

ISODIOL INTERNATIONAL ORD by Isodiol International Inc.

ISOLF

ITHUF

IVITF

JWCAF

KALY

KAYS

KHIRON LIFE SCIENCES CORP by Khiron Life Sciences Corp.

KHRNF

LEAFBUYER TECHNOLOGIES by Leafbuyer Technologies, Inc.

LBUY

LFCOF

LFLY

LIFD

LMLLF

LNLHF

LOVFF

LRSNF

LVRLF

LXLLF

MAPS

MGCLF

MGWFF

MJNE

MJUS

MMNFF

MPXOF

MRMD

NDVAF

NOBDF

NWVCF

OILFF

PHOT

PKPH

FDA Solicits Public Comments On Use Of Cannabis-derived Products In Veterinary Medicine

<h3>GAINERS:</h3>
<ul>
<li><a href="https://www.benzinga.com/quote/CURR">Currenc Group</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CURR#NASDAQ">CURR</a>) shares closed up 118.71% at $3.92</li>
<li><a href="https://www.benzinga.com/quote/LBUY">Leafbuyer Techs</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LBUY#OTC">LBUY</a>) shares closed up 45.83% at $0.02</li>
<li><a href="https://www.benzinga.com/quote/FUAPF">Global Compliance</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FUAPF#OTC">FUAPF</a>) shares closed up 26.67% at $0.00</li>
<li><a href="https://www.benzinga.com/quote/RSSFF">Affinor Growers</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/RSSFF#OTC">RSSFF</a>) shares closed up 17.68% at $0.06</li>
<li><a href="https://www.benzinga.com/quote/BMMJ">Body and Mind</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMMJ#OTC">BMMJ</a>) shares closed up 14.29% at $0.02</li>
<li><a href="https://www.benzinga.com/quote/MXC">Mexco Energy</a> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MXC#AMEX">MXC</a>) shares closed up 8.53% at $13.18</li>
<li><a href="https://www.benzinga.com/quote/ITHUF">iAnthus Capital Hldgs</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ITHUF#OTC">ITHUF</a>) shares closed up 7.83% at $0.01</li>
<li><a href="https://www.benzinga.com/quote/CWBHF">Charlottes Web Holdings</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CWBHF#OTC">CWBHF</a>) shares closed up 4.26% at $0.13</li>
<li><a href="https://www.benzinga.com/quote/CVSI">CV Sciences</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CVSI#OTC">CVSI</a>) shares closed up 3.85% at $0.04</li>
<li><a href="https://www.benzinga.com/quote/LMLLF">Pharmadrug</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LMLLF#OTC">LMLLF</a>) shares closed up 3.74% at $0.01</li>
<li><a href="https://www.benzinga.com/quote/CURLF">Curaleaf Holdings</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CURLF#OTC">CURLF</a>) shares closed up 3.09% at $1.48</li>
</ul>
<h3>LOSERS:</h3>
<ul>
<li><a href="https://www.benzinga.com/quote/CBDY">Target Group</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CBDY#OTC">CBDY</a>) shares closed down 22.22% at $0.00</li>
<li><a href="https://www.benzinga.com/quote/FFNTF">4Front Ventures</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FFNTF#OTC">FFNTF</a>) shares closed down 10.07% at $0.01</li>
<li><a href="https://www.benzinga.com/quote/CARA">Cara Therapeutics</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARA#NASDAQ">CARA</a>) shares closed down 9.84% at $4.75</li>
<li><a href="https://www.benzinga.com/quote/SOLCF">SOL Glb Inv</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SOLCF#OTC">SOLCF</a>) shares closed down 9.53% at $0.26</li>
<li><a href="https://www.benzinga.com/quote/OILFF">Nextleaf Solutions</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/OILFF#OTC">OILFF</a>) shares closed down 8.59% at $0.05</li>
<li><a href="https://www.benzinga.com/quote/NWVCF">EnWave</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NWVCF#OTC">NWVCF</a>) shares closed down 6.60% at $0.14</li>
<li><a href="https://www.benzinga.com/quote/SOL">Emeren Group</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOL#NYSE">SOL</a>) shares closed down 6.57% at $2.10</li>
<li><a href="https://www.benzinga.com/quote/CGC">Canopy Gwth</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CGC#NASDAQ">CGC</a>) shares closed down 6.28% at $2.66</li>
<li><a href="https://www.benzinga.com/quote/BLOZF">Cannabix Technologies</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BLOZF#OTC">BLOZF</a>) shares closed down 6.26% at $0.20</li>
<li><a href="https://www.benzinga.com/quote/TLRY">Tilray Brands</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLRY#NASDAQ">TLRY</a>) shares closed down 5.52% at $1.37</li>
<li><a href="https://www.benzinga.com/quote/KAYS">Kaya Holdings</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KAYS#OTC">KAYS</a>) shares closed down 4.69% at $0.03</li>
<li><a href="https://www.benzinga.com/quote/VFF">Village Farms Intl</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VFF#NASDAQ">VFF</a>) shares closed down 4.64% at $0.80</li>
<li><a href="https://www.benzinga.com/quote/CRLBF">Cresco Labs</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#OTC">CRLBF</a>) shares closed down 4.23% at $0.97</li>
<li><a href="https://www.benzinga.com/quote/GRWG">GrowGeneration</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRWG#NASDAQ">GRWG</a>) shares closed down 4.02% at $1.67</li>
<li><a href="https://www.benzinga.com/quote/CBWTF">Auxly Cannabis Group</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CBWTF#OTC">CBWTF</a>) shares closed down 3.94% at $0.03</li>
<li><a href="https://www.benzinga.com/quote/SNDL">SNDL</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNDL#NASDAQ">SNDL</a>) shares closed down 3.59% at $1.88</li>
<li><a href="https://www.benzinga.com/quote/TCNNF">Trulieve Cannabis</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) shares closed down 3.42% at $5.07</li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

CARA

RSSFF

SNDL

SOLCF

Cannabis Stock Movers For January 9, 2025

In a new twist on Wednesday, a DEA judge ordered the agency to respond to allegations that it opposes President Joe Biden's <a href="https://www.benzinga.com/markets/cannabis/23/08/34126690/hhs-secretary-confirms-it-is-recommending-cannabis-be-rescheduled-per-bidens-directive">directive of August 2023 to reschedule marijuana</a> and that it is improperly conferring with cannabis opponents. 
Marijuana Moment <a href="https://www.marijuanamoment.net/dea-judge-orders-agency-to-respond-to-new-allegations-it-opposes-marijuana-rescheduling-and-improperly-conspired-with-prohibitionists/">reported</a> that one day after a motion was filed outlining these allegations, which include improper communications with opponents of the reform, the DEA is now compelled to reply next week. Additionally, participants in the hearings are asking the judge to remove the DEA from the process, noted the outlet.
DEA Administrative Law Judge John Mulrooney <a href="https://www.dea.gov/sites/default/files/2025-01/Marijuana%20Rescheduling_Ord%20re%20Mot%20for%20Recon%20Response%20%28e%29.pdf">wrote</a> that the government is ordered to file a response to a motion to reconsider by Jan. 13. 
What Happened: Attorneys representing cannabis advocates argued the DEA&#8217;s late submission of data on marijuana reclassification undermines the fairness of the hearing process. 
They said the agency violated federal law by withholding information until the eve of the hearing, hindering the Department of Health and Human Services <a href="https://www.benzinga.com/markets/cannabis/24/01/36620822/feds-finally-release-documents-confirming-recommendation-to-reschedule-cannabis-based-on-accepte">scientific review of January 2024 </a>and depriving pro-rescheduling groups of a fair opportunity to participate.
Adding fuel to the fire, <a href="https://www.benzinga.com/markets/cannabis/24/03/37603576/dea-vs-white-house-agency-pushes-back-on-medical-benefits-of-cannabis-weed-stocks-wobble">statements from the DEA</a> have questioned the medical value of cannabis, citing a lack of robust clinical trials approved by the Food and Drug Administration to support the safety and efficacy of cannabis for its various therapeutic uses.
The original motion regarding &#8220;ex parte&#8221; communications included failing to disclose nearly 100 requests to participate in the hearings and coordinating<a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens"> with at least one anti-rescheduling group</a>.
Read Also: <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">DEA Slammed For Unlawful Talks With Cannabis Opponents &#8211; The Plot Thickens</a>
<h2 class="wp-block-heading">Cannabis Stocks: Deep Declines Over The Year</h2>
The reclassification process, the first of its kind since 1970, has kept cannabis industry and marijuana stocks on edge and it showed at the end of 2024. 
AdvisorShares Pure US Cannabis ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSOS#NYSE">MSOS</a>), a benchmark for the sector, plummeted by about 48% in 2024. As of this writing, MSOS shares are down 5.91% on the day. 
U.S. and Canadian marijuana stocks didn't do much better amid concerns over the outcome of the DEA&#8217;s review.
Curaleaf Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CURLF#OTC">CURLF</a>) fell some 62% in 2024. Verano Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VRNOF#OTC">VRNOF</a>) lost about 73%, Trulieve (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) fell about 7.5%, Green Thumb Industries (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>) is down 31% and Cresco Labs (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#OTC">CRLBF</a>) has lost about 37% of its value. TerrAscend (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TSNDF#OTC">TSNDF</a>) was also down by 62% in 2024, while Ascend Wellness (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AAWH#OTC">AAWH</a>) dropped 64%.
Canopy Growth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CGC#NASDAQ">CGC</a>) has fallen 45% and Tilray Brands (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLRY#NASDAQ">TLRY</a>) subtracted 37%. One exception was Canada&#8217;s OrganiGram (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OGI#NASDAQ">OGI</a>), which rose more than 20%.
The DEA is required to respond to the allegations by Jan. 13, so stay tuned as the process grinds on.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/25/01/42805558/from-prison-to-profits-heres-how-this-entrepreneurs-cannabis-business-makes-800000-monthly">From Prison To Profits: Here&#8217;s How This Entrepreneur&#8217;s Cannabis Business Makes $800,000 Monthly</a></li>
</ul>
Image AI created.

Following Surgeon General Vivek Murthy's <a href="https://www.benzinga.com/government/regulations/25/01/42787400/alcohol-increases-cancer-risk-surgeon-general-warns">Friday advisory</a> warning about cancer risks associated with alcohol consumption and calling for updates to health warning labels, Dr. Benjamin Caplan, chief medical officer at the CED Clinic in Massachusetts, Dr. Benjamin Caplan weighed in.
Caplan, a family physician with a unique focus on cannabis medicine, said Murthy's recommendations in which he cited mounting evidence of alcohol's role in <a href="https://www.benzinga.com/general/health-care" target="_blank" rel="noreferrer noopener">cancer development</a> are "a wake-up call."
The advisory &#8220;brings science in line with what many of us in medicine have long seen: alcohol isn't just a harmless social habit — it's a carcinogen," Caplan told Benzinga. 
"For some, it's a nightly ritual; for others, a way to manage stress or sleeplessness. But the damage it leaves behind is undeniable. Alcohol isn't just a drink — it's a risk factor, woven into our culture and quietly eroding our health."
Caplan gave an example of a patient who &#8220;turned to wine to unwind" and was eventually diagnosed with colon cancer. 
"Her story lingers in my mind as a reminder of how deeply alcohol is entrenched in our lives and how devastating its effects can be."
Read Also: <a href="https://www.benzinga.com/government/regulations/24/12/42724338/new-year-2025-how-americas-love-of-cannabis-transformed-social-life-industry-and-health-trends">Cannabis In 2025: Inside America&#8217;s Social, Economic, Wellness Transformation</a>
<h2 class="wp-block-heading">Changing Habits </h2>
Caplan said the challenge is not just about changing habits but about reshaping how we think.
"Alcohol is normalized to the point that alternatives — like cannabis for stress or sleep — are stigmatized or dismissed," he said. 
"But as a physician, my role is clear: to offer knowledge and compassion, to guide patients toward choices that protect their health. We owe it to our patients to meet them where they are but not leave them where they're at. The Surgeon General&#8217;s advisory is a step forward, a chance to save lives — if we're willing to listen and act."
<h2 class="wp-block-heading">Booze Stocks Tank, Cannabis Stocks Rise</h2>
As alcohol stocks drop on the Surgeon General's news, multiple cannabis stocks are on the rise for the first time in a long time.
Tilray Brands Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLRY#NASDAQ">TLRY</a>) is up 1.03%, Green Thumb Industries (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTCQX">GTBIF</a>) up 1.65%, Canopy Growth Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CGC#NASDAQ">CGC</a>) up 2.84% and Sundial Growers Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNDL#NASDAQ">SNDL</a>) up 1.58%. Cresco Labs Inc. (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#OTCQX">CRLBF</a>) is up a healthy 3.272%.
On the other hand, the AdvisorShares Pure US Cannabis ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSOS#NYSE">MSOS</a>), often viewed as a benchmark for multistate operators, is down 3.06%. Trulieve Cannabis Corp. (OTCQX:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTCQX">TCNNF</a>) is down 5.6%. 
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/42787400/alcohol-increases-cancer-risk-surgeon-general-warns">Molson Coors, Diageo, Boston Beer Tumble As Surgeon General Warns &#8216;Alcohol Consumption Increases&#8217; Cancer Risk</a>&#8216;</li>
</ul>
Photo courtesy of Dr. Ben Caplan.

Health Care

Exclusives

Interview

EXCLUSIVE: Cannabis Physician Says Surgeon General's Alcohol Cancer Risk Warning Is 'Wake-Up Call'

<h3>GAINERS:</h3>
<ul>
<li><a href="https://www.benzinga.com/quote/CARA">Cara Therapeutics</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARA#NASDAQ">CARA</a>) shares closed up 1666.20% at $6.12</li>
<li><a href="https://www.benzinga.com/quote/MPXOF">MPX International</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MPXOF#OTC">MPXOF</a>) shares closed up 450.00% at $0.00</li>
<li><a href="https://www.benzinga.com/quote/AUSAF">Australis Capital</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AUSAF#OTC">AUSAF</a>) shares closed up 100.00% at $0.0002</li>
<li><a href="https://www.benzinga.com/quote/LBUY">Leafbuyer Techs</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LBUY#OTC">LBUY</a>) shares closed up 77.27% at $0.02</li>
<li><a href="https://www.benzinga.com/quote/CNBX">CNBX Pharmaceuticals</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CNBX#OTC">CNBX</a>) shares closed up 35.16% at $0.01</li>
<li><a href="https://www.benzinga.com/quote/FFNTF">4Front Ventures</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FFNTF#OTC">FFNTF</a>) shares closed up 35.00% at $0.01</li>
<li><a href="https://www.benzinga.com/quote/EAST">Eastside Distilling</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EAST#NASDAQ">EAST</a>) shares closed up 24.40% at $0.96</li>
<li><a href="https://www.benzinga.com/quote/CXXIF">C21 Investments</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CXXIF#OTC">CXXIF</a>) shares closed up 17.58% at $0.20</li>
<li><a href="https://www.benzinga.com/quote/BBRRF">Blueberries Medical</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BBRRF#OTC">BBRRF</a>) shares closed up 12.50% at $0.01</li>
<li><a href="https://www.benzinga.com/quote/CWBHF">Charlottes Web Holdings</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CWBHF#OTC">CWBHF</a>) shares closed up 10.59% at $0.09</li>
<li><a href="https://www.benzinga.com/quote/ZLDAF">Zelira Therapeutics</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ZLDAF#OTC">ZLDAF</a>) shares closed up 7.95% at $0.38</li>
<li><a href="https://www.benzinga.com/quote/CURR">Currenc Group</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CURR#NASDAQ">CURR</a>) shares closed up 7.59% at $1.80</li>
<li><a href="https://www.benzinga.com/quote/TCNNF">Trulieve Cannabis</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) shares closed up 7.54% at $5.18</li>
<li><a href="https://www.benzinga.com/quote/CNTMF">Cansortium</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CNTMF#OTC">CNTMF</a>) shares closed up 6.25% at $0.07</li>
<li><a href="https://www.benzinga.com/quote/MXC">Mexco Energy</a> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/MXC#AMEX">MXC</a>) shares closed up 5.92% at $11.28</li>
<li><a href="https://www.benzinga.com/quote/BLOZF">Cannabix Technologies</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BLOZF#OTC">BLOZF</a>) shares closed up 5.75% at $0.23</li>
<li><a href="https://www.benzinga.com/quote/GRWG">GrowGeneration</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRWG#NASDAQ">GRWG</a>) shares closed up 4.43% at $1.69</li>
<li><a href="https://www.benzinga.com/quote/OGI">OrganiGram Holdings</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OGI#NASDAQ">OGI</a>) shares closed up 3.75% at $1.61</li>
<li><a href="https://www.benzinga.com/quote/CRON">Cronos Group</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRON#NASDAQ">CRON</a>) shares closed up 3.08% at $2.02</li>
</ul>
<h3>LOSERS:</h3>
<ul>
<li><a href="https://www.benzinga.com/quote/LMLLF">Pharmadrug</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LMLLF#OTC">LMLLF</a>) shares closed down 25.79% at $0.01</li>
<li><a href="https://www.benzinga.com/quote/CBDY">Target Group</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CBDY#OTC">CBDY</a>) shares closed down 17.65% at $0.00</li>
<li><a href="https://www.benzinga.com/quote/XXII">22nd Century Group</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XXII#NASDAQ">XXII</a>) shares closed down 11.30% at $5.31</li>
<li><a href="https://www.benzinga.com/quote/RSSFF">Affinor Growers</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/RSSFF#OTC">RSSFF</a>) shares closed down 9.91% at $0.06</li>
<li><a href="https://www.benzinga.com/quote/KAYS">Kaya Holdings</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KAYS#OTC">KAYS</a>) shares closed down 7.59% at $0.03</li>
<li><a href="https://www.benzinga.com/quote/NWVCF">EnWave</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NWVCF#OTC">NWVCF</a>) shares closed down 6.97% at $0.15</li>
<li><a href="https://www.benzinga.com/quote/FUAPF">Global Compliance</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FUAPF#OTC">FUAPF</a>) shares closed down 6.36% at $0.00</li>
<li><a href="https://www.benzinga.com/quote/ZDPY">Zoned Properties</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ZDPY#OTC">ZDPY</a>) shares closed down 4.10% at $0.47</li>
<li><a href="https://www.benzinga.com/quote/SOL">Emeren Group</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOL#NYSE">SOL</a>) shares closed down 3.56% at $2.03</li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

EAST

XXII

ZDPY

ZLDAF

Bullish Wednesday For Marijuana Stocks - Cara Therapeutics, MPX International Among Top Gainers

Dropbox shares are trading higher after the company secured a $2 billion term loan facility led by Blackstone, authorized a $1.2 billion share repurchase program, and stated it expects to meet or exceed Q4 and FY 2024 guidance.

New Lake Capital Partners (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NLCP#OTC">NLCP</a>), a real estate company focused on cannabis properties, offers an attractive investment with a 9.1% dividend yield, well above the return on 10-year government bonds.
This yield, combined with a cautious approach to debt and disciplined portfolio growth, positions NLCP as an attractive alternative to other cannabis REITs like IIPR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IIPR#NYSE">IIPR</a>) and broader industrial REITs. Trading near par value, NLCP's conservative strategy highlights its potential for stable, long-term returns, as noted by Pablo Zuanic of <a href="https://zuanicgroup.com/">Zuanic &amp; Associates</a>.
<ul>
<li>Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. You can&#8217;t afford to miss out if you're serious about the business.</li>
</ul>
<h3 class="wp-block-heading">Attractive Valuation And Dividend Yield</h3>
One of NLCP's standout features is its 9.1% dividend yield, which is almost 500 basis points (bp) higher than 10-year Treasury bills—the benchmark for low-risk investments.&nbsp;
By comparison, IIPR offers a 6.7% dividend yield but trades at a 57% premium to book value, while NLCP trades at par, reflecting a more conservative approach to valuation.&nbsp;
Zuanic notes this discrepancy &#8211; partly due to IIPR&#8217;s NYSE listing versus NLCP&#8217;s OTC market status -suggests NLCP may be undervalued, with the potential for its valuation to increase as its market recognition grows.
The company's dividend coverage stands at 120%, demonstrating the sustainability of its payouts. NLCP's rental yield is approximately 13%, which,<a href="https://www.benzinga.com/topic/pablo-zuanic"> according to Zuanic</a>, is notably higher than its debt cost of 5.65%, ensuring that it generates sufficient income to cover its dividends.&nbsp;
Read Also: <a href="https://www.benzinga.com/24/12/42340604/better-than-the-bank-weed-real-estate-investment-companys-14-yield-beats-traditional-savings">Better Than The Bank: Weed Real Estate Investment Company&#8217;s 14% Yield Beats Traditional Savings</a>
<h3 class="wp-block-heading">Prudent Portfolio Management And Growth</h3>
NLCP operates with a low debt-to-equity ratio of less than 2%, maintaining an unleveraged balance sheet. This strategy underscores its cautious approach to capital management, particularly in an industry prone to higher volatility.
As of September 2024, NLCP's portfolio consists of 32 properties—including 17 dispensaries and 15 cultivation facilities—spread across 12 states. Zuanic noted these properties are fully rented, with an average lease term of 13.8 years, ensuring long-term income stability.&nbsp;
The company has demonstrated growth, with a 4% increase in its <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40834708/new-laws-could-unleash-1-7b-demand-for-cannabis-loans-this-real-estate-stock-is-set">real estate book</a> year-to-date, funded by $2.6 million in new investments in Q3 2024.&nbsp;
This growth rate <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40867279/12m-in-rental-income-why-investors-should-watch-this-stock-thats-crushing-averages">outpaces IIPR</a>, which reported only 2% growth over the same period.
<h3 class="wp-block-heading">Challenges With Tenants And Lease Amendments</h3>
Like any investment, NLCP has faced challenges with a few tenants. Revolutionary Clinics in Massachusetts and Calypso Enterprises in Pennsylvania have struggled with rent payments. The company has amended leases with these tenants and utilized escrow deposits to address rent shortfalls.
Read Also:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42344916/you-are-missing-out-on-this-nasdaq-listed-weed-stock-low-cost-model-meets-european-demand"> Are You Missing Out On This NASDAQ-Listed Weed Stock? Low-Cost Model Meets European Demand</a>
<h3 class="wp-block-heading">Growth Outlook And Acquisition Strategy</h3>
&nbsp;As recreational cannabis markets expand in states like <a href="https://www.benzinga.com/topic/new-york-cannabis">New York</a>, <a href="https://www.benzinga.com/topic/new-jersey-cannabis">New Jersey</a>, <a href="https://www.benzinga.com/topic/ohio-cannabis">Ohio</a>, and <a href="https://www.benzinga.com/topic/connecticut-cannabis">Connecticut</a>, NLCP is positioned for growth. Furthermore, large medical markets such as <a href="https://www.benzinga.com/topic/pennsylvania-cannabis">Pennsylvania</a> and <a href="https://www.benzinga.com/topic/virginia-cannabis">Virginia</a> could transition to recreational sales within the next two years, creating new growth opportunities.
In 2024, NLCP made a $4 million acquisition of a cultivation facility in Connecticut (C3 Industries), with $12 million committed to building improvements. As of September 2024, the company has $21.2 million in construction-in-progress, primarily in <a href="https://www.benzinga.com/topic/arizona-cannabis">Arizona</a> and Connecticut, indicating continued expansion of its portfolio.
<h3 class="wp-block-heading">Stock Performance And Sector Comparison</h3>
Over the past 90 days, NLCP's stock has been relatively stable, down 3%, compared to the broader <a href="https://www.benzinga.com/markets/cannabis/24/10/41214215/cannabis-focused-commercial-mortgage-reit-exceeds-100m-in-new-originations-with-41m-credit-facil">industrial REIT </a>sector, which declined 13%.&nbsp;
NLCP trades at par, with a book value per share (BVPS) of $19.48 as of Q3 2024, well below the 57% premium at which IIPR trades. According to Zuanic, NLCP's stock is priced close to its actual value of $19.48 per share, while IIPR is trading at a much higher price above its book value.
Despite this, NLCP's superior<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39866180/this-cannabis-lender-is-sitting-on-a-stack-of-capital-100-dividends-meet-equity-lik"> dividend yield</a> and low debt cost make it a potentially more attractive investment for income-focused investors.
&#8220;Five operators (four public) accounted for 65% of total rental income as of 3Q24 (Curaleaf (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/curlf#NASDAQ">CURLF</a>) 23%; Cresco Labs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#NASDAQ">CRLBF</a>) 14%; Trulieve (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) 11%; Cannabist 9%; C3 8%); this compared with 68% in 3Q23. At IIPR, five operators accounted for 50% of rental income in 3Q24 (PharmaCann 17%; Ascend Wellness (CSE: AAWH) 11%; Green Thumb Industries (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>) 8%; Curaleaf 7%; Trulieve 7%),&#8221; Zuanic wrote. 
Read Next:<a href="https://www.benzinga.com/government/regulations/24/11/42235292/pharma-grade-cannabis-could-hit-walgreens-cvs-but-can-the-industry-survive-the-fda"> Pharma-Grade Cannabis Could Hit Walgreens &amp; CVS—But Can The Industry Survive The FDA?</a>

Analyst Color

Market Summary

Penny Stocks

REIT

Guidance

Small Cap Analysis

Success Stories

Analyst Ratings

General

Real Estate

NLCP

The Price Is Right: This Weed Real Estate Stock Proves Conservative Strategies Bring Returns

The cannabis sector's Q3 performance has been a mixed bag, but two companies stood out for their exceptional financial performance: Green Thumb Industries (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>) and Glass House Brands (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GLASF#OTC">GLASF</a>).&nbsp;
Both delivered top-tier results, ranking in the top five for key financial metrics, including adjusted EBITDA, operating cash flow, and free cash flow.&nbsp;
<ul>
<li>Get Benzinga&#8217;s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. You can't afford to miss out if you&#8217;re serious about the business.</li>
</ul>
<h3 class="wp-block-heading">Leading The Pack: GTI And Glass House Top Rankings Across Key Financial Metrics</h3>
Green Thumb and Glass House have emerged as leaders in Q3, securing top-five spots across all four critical margin metrics: adjusted EBITDA, operating cash flow, free cash flow, and operating margin. This means that both Green Thumb and Glass House are not only generating strong profits but also effectively managing their cash flow and operational costs
Other companies that performed well include Grown Rogue (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GRUSF#OTC">GRUSF</a>), which repeated its strong results in adjusted EBITDA and operating cash flow, and Vext Science (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VEXTF#OTC">VEXTF</a>), which made a significant leap into the top five for both metrics.&nbsp;
According to a December 5 report from <a href="https://beaconsecurities.ca/">Beacon Securities</a>, Vext has moved into the top five for both adjusted EBITDA and operating cash flow, thanks to strong operational improvements and a focus on cost efficiency. The company's growth was driven by expanding its market presence and optimizing its business structure to improve overall profitability.
Read Also: <a href="https://www.benzinga.com/general/market-summary/24/12/42372053/europe-says-thanks-but-well-do-it-ourselves-canada-leads-in-raw-cannabis-exports-not-oil">Europe Says Thanks But We&#8217;ll Do It Ourselves &#8211; Canada Leads In Raw Cannabis Exports, Not Oil</a>
<h3 class="wp-block-heading">Tax Strategies And Market Trends Enhance Cash Flow</h3>
A key theme in the Q3 report is the ongoing role of tax strategies in enhancing operating <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39609582/europe-is-turning-cash-flow-positive-well-see-what-happens-in-the-u-s-largest-canna">cash flow</a>. A notable 85% of the companies analyzed achieved positive adjusted EBITDA for the quarter, an increase from 81% in Q2.&nbsp;
The benefits of tax reforms, including moves to reduce 280E tax obligations, were evident as 65% of companies reported positive operating cash flow after working capital, up from 59% in Q2. These tax maneuvers have allowed operators to release working capital and generate higher cash flow, a crucial advantage in an industry where cash is king.
However, not all companies were able to convert EBITDA to <a href="https://www.benzinga.com/24/12/42323140/decibel-cannabis-one-acquisition-could-be-the-key-to-unlocking-20-million-in-cash-flow">operating cash flow</a> as efficiently.&nbsp;
<a href="https://www.benzinga.com/topic/beacon-securities-limited">Beacon's analyst</a> noted only 15 out of 26 operators were successful in making this conversion on a trailing twelve-month basis, a decline from 19 in Q2. Planet 13 (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PLNH#OTC">PLNH</a>) and Trulieve (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) were among the leaders in converting EBITDA into positive cash flow, partly due to favorable tax strategies.
Read Also:<a href="https://www.benzinga.com/24/12/42373720/deas-cannabis-rescheduling-hearing-set-to-begin-in-january-2025-as-controversy-mounts"> DEA&#8217;s Cannabis Rescheduling Hearing Set To Begin In January 2025 As Controversy Mounts</a>
<h3 class="wp-block-heading">Industry Outlook: Will The Momentum Continue?</h3>
Looking forward, the cannabis industry faces the challenge of maintaining positive cash flow in the face of rising costs and margin pressures. While the third quarter saw positive cash flow for many operators, seasonality and <a href="https://www.benzinga.com/24/11/42224446/the-hidden-cost-of-legal-weed-why-marijuana-taxes-are-hitting-your-wallet-harder-than-you-think">tax</a> strategy releases likely played a significant role in the improvement. As the year progresses, companies will need to stay focused on tax optimization and cost control to sustain profitability in an increasingly competitive market.
Read Next: <a href="https://www.benzinga.com/24/12/42373838/organigram-wants-to-become-canadas-largest-cannabis-company-by-market-share-via-up-to-71m-worth-of-acquisition-deal">Organigram Wants To Become Canada&#8217;s Largest Cannabis Company By Market Share Via $71M Acquisition Deal</a>

Financing

Management

Trading Ideas

GRUSF

PLNH

VEXTF

85% Of Cannabis Companies Report Positive Earnings, But Not All Are Winning - See Who's Leading

Cannabis company MariMed Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRMD#NASDAQ">MRMD</a>) released its Q3 2024 results on November 6, announcing revised guidance for the fiscal year. While the company expects an 18–20% decline in EBITDA &#8211; down from its prior projection of flat to 2% growth &#8211; it raised its sales guidance to a 6–8% increase, up from 5–7%. These adjustments align closely with earlier projections from Zuanic &amp; Associates, a cannabis industry research firm.
<ul>
<li>Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. You can&#8217;t afford to miss out if you're serious about the business.</li>
</ul>
<h3 class="wp-block-heading">Guidance Adjustments Reflect Sector Trends</h3>
Zuanic &amp; Associates&#8217; October 16 report on MariMed highlighted its strategic focus on core markets, particularly in <a href="https://www.benzinga.com/topic/illinois-cannabis">Illinois</a>, where Zuanic's team recently visited the company's retail and cultivation facilities. Despite the downward revision to EBITDA, MariMed's raised sales expectations are noteworthy given broader sector headwinds.&nbsp;
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="MARIMED ILLINOIS OPS. SERIES - MANAGEMENT STRATEGY PLUS NEW KITCHEN/LAB FACILITIES" width="500" height="281" src="https://www.youtube.com/embed/Mtuyg4gZBsw?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
<figcaption class="wp-element-caption">MARIMED ILLINOIS OPS. SERIES &#8211; MANAGEMENT STRATEGY PLUS NEW KITCHEN/LAB FACILITIES</figcaption></figure>
Cannabis stocks with exposure to Florida, for instance, have seen steep declines following the November ballot initiative's failure to secure a 60% majority. The AdvisorShares Pure US Cannabis ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSOS#NYSE">MSOS</a>) has dropped 33% in the past month, with AYR Wellness (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AYRWF#OTC">AYRWF</a>) and Trulieve Cannabis Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) plummeting 70% and 49%, respectively. 
In contrast, MRMD has declined a more modest 12% over the same period.
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/11/41803977/marimeds-q3-revenue-slightly-up-yoy-as-net-loss-improves-revises-guidance">MariMed&#8217;s Q3 Revenue Slightly Up YoY As Net Loss Improves, Revises Guidance</a>
<h3 class="wp-block-heading">Valuation: &#8216;The Discount Is Overdone&#8217;</h3>
Zuanic emphasized MariMed's attractive valuation relative to its peers. &#8220;On a spot EV basis, MRMD trades at 1x CY24 sales compared to 1.5x for the MSO average, with Curaleaf (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CURLF#OTC">CURLF</a>) and Green Thumb Industries (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>) at 2x,&#8221; Zuanic noted. &#8220;Its 8x CY24 EBITDA multiple is also favorable against the peer average of 11x. We believe the discount is overdone.&#8221;&nbsp;
Zuanic rates MariMed as &#8220;Overweight,&#8221; citing its robust balance sheet and self-driven growth opportunities that are not reliant on state-level <a href="https://www.benzinga.com/topic/cannabis-regulation">regulatory changes</a>. The firm underscored that its investment thesis is grounded in fundamentals rather than speculative short-term opportunities.&nbsp;
<h3 class="wp-block-heading">Sectoral Outlook Remains A Challenge</h3>
The broader cannabis sector continues to grapple with market volatility and regulatory uncertainties. While MariMed shows resilience, Zuanic noted the sector's dependence on macro-level changes. For investors, MariMed represents a fundamentally strong outlier, but industry-wide challenges remain a drag on stock performance.
With an &#8220;Overweight&#8221; rating from Zuanic &amp; Associates and a valuation that stands out in a turbulent sector, MariMed presents an intriguing opportunity for long-term cannabis investors. 
&#8220;MJ stocks with FL exposure have taken the biggest hit in the last month (the 11/5 ballot did not reach the 60% threshold); as a result, the MSOS ETF is down 33% in the last 30 days (AYR -70%; Trulieve -49%) vs. -12% for MRMD,&#8221; reads the <a href="https://zuanicgroup.com/">report from Zuanic</a>. 
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/10/41642661/edibles-surge-in-the-heartland-marimeds-play-for-missouri-and-illinois-cannabis-dominance">Edibles Surge In The Heartland: MariMed&#8217;s Play For Missouri And Illinois Cannabis Dominance</a>
<h2 class="wp-block-heading">Market Performance in IL and MD Fuels Growth</h2>
<h3 class="wp-block-heading">Illinois: 40-45% of sales&nbsp;</h3>
<ul>
<li>Despite a slowdown in market growth, MariMed is expanding operations (new cultivation facility, stores) and experiencing strong brand performance (InHouse vape, Betty&#8217;s edibles).</li>
<li>Vape: InHouse &#8211; Top 11 brand (3.7% share)</li>
<li><a href="https://www.benzinga.com/markets/cannabis/24/11/41993054/was-the-whole-gummy-too-much-azuca-solves-the-cannabis-edibles-problem-with-food-tech">Edibles</a>: Betty&#8217;s Eddies &#8211; Top 12 brand (3.5% share)</li>
</ul>
<h3 class="wp-block-heading">Maryland: Fast Growth</h3>
<ul>
<li>Rapidly growing market with favorable pricing dynamics. MariMed&#8217;s expanded capacity and new stores position it for significant growth.</li>
<li>Strong brand performance in edibles (Betty&#8217;s) and vape (InHouse)</li>
<li>Edibles: Betty&#8217;s Eddies &#8211; Top 1 brand (11.3% share)</li>
<li>Vape: InHouse &#8211; Top 7 brand (4.2% share)</li>
</ul>
<h3 class="wp-block-heading">Massachusetts: Focus On Optimization</h3>
<ul>
<li>Limited growth potential. Focus on optimizing existing operations and maintaining strong brand positions (Betty&#8217;s edibles, InHouse vape).</li>
<li>Edibles: Betty&#8217;s &#8211; Top 3 brand (7.5% share)</li>
<li>Vape: InHouse &#8211; Top 14 brand (2% share)</li>
</ul>
According to Zuanic, Missouri and Ohio are expected to become larger contributors to sales by 2025.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41536686/can-marimeds-7-7m-illinois-cannabis-expansion-turn-the-tide-in-a-496m-market">Can MariMed&#8217;s $7.7M Illinois Cannabis Expansion Turn The Tide In A $496M Market?</a>

Retail Sales

Economics

Is MariMed A Safe Haven In The Wake Of Florida's Cannabis Legalization Defeat?

As the formal review process for rescheduling cannabis unfolds, industry players are closely watching its potential to transform the sector. With the DEA hearing delayed until early 2025 and a possible Trump presidency adding uncertainty, cannabis businesses are preparing for what rescheduling to Schedule III could mean.&nbsp;
From FDA oversight to interstate commerce and pharmaceutical-grade standards, these changes could fundamentally reshape the landscape—and investors and businesses need to be ready.
<ul>
<li>Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. You can&#8217;t afford to miss out if you're serious about the business.</li>
</ul>
<h2 class="wp-block-heading">Rescheduling: A Door To Big-Box Pharmacies?</h2>
Denise Pollicella, a cannabis attorney and head of Omnus Law&#8216;s cannabis practice, points out that rescheduling cannabis isn't just about new retail partnerships but about overhauling how cannabis businesses operate.&nbsp;
"It's about transforming how cannabis businesses operate—adapting to FDA oversight, meeting pharmaceutical-grade standards, and navigating stricter compliance requirements," she told Benzinga Cannabis in an exclusive interview.
Rescheduling to Schedule III could allow major pharmaceutical retailers like CVS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) and Walgreens (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>) to carry cannabis. But is the pathway straightforward? 
Pollicella anticipates a system similar to the <a href="https://www.benzinga.com/government/regulations/24/11/42068539/billion-dollar-strike-farm-bill-amendment-could-change-the-hemp-industry">2018 hemp legalization framework</a>, where states submit regulatory schemes to meet federal guidelines. "Most states prefer to regulate these things themselves, particularly from a financial and tax point of view," she said, noting states' interest in retaining control of fees and fines.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="500" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/28053734/Denise-Pollicella-Square-Website-Image.png" alt="" class="wp-image-668972" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/28053734/Denise-Pollicella-Square-Website-Image.png 500w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/28053734/Denise-Pollicella-Square-Website-Image-300x300.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/28053734/Denise-Pollicella-Square-Website-Image-150x150.png 150w" sizes="(max-width: 500px) 100vw, 500px" /><figcaption class="wp-element-caption">Denise Pollicella </figcaption></figure>
<h3 class="wp-block-heading">FDA Oversight: Stricter Standards Ahead</h3>
If cannabis becomes a pharmaceutical-grade product, compliance with<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/08/33482140/rescheduling-cannabis-what-are-the-implications-for-msos-tax-rule-280e-fda-and-phar"> FDA standards will significantly change how businesses operate</a>. Pollicella explained that the cannabis industry has historically focused on ensuring safety and avoiding contaminants, with minimal emphasis on seed traceability. "Most of the testing and analysis has revolved around making sure that it's safe and doesn't have contaminants, and then around THC and CBD levels," she noted.
Pollicella added that transitioning to pharmaceutical-grade products would require stricter production standards and significantly more testing, which could drive up costs in an already expensive industry. Pollicella noted the likely challenges: "When it goes to a more pharmaceutical-grade product, not only will the production standards have to become more strict, but you'll also have significantly more testing."
Read Also:<a href="https://www.benzinga.com/markets/cannabis/24/07/39720968/is-big-pharma-poised-to-take-over-cannabis-3-companies-already-manage-8-in-10-drug-prescriptions"> Is Big Pharma Poised To Take Over Cannabis? 3 Companies Already Manage 8 In 10 Drug Prescriptions In The US</a>
<h3 class="wp-block-heading">Interstate Commerce</h3>
<a href="https://www.benzinga.com/markets/cannabis/24/10/41502695/exclusive-tilray-ceo-irwin-simon-on-why-us-cannabis-rescheduling-wont-change-a-billion-dollar-pl">Rescheduling cannabis from Schedule I to Schedule III </a>could pave the way for interstate trade, a shift that would fundamentally reshape supply chains and market dynamics. By lowering cannabis&#8217;s federal regulatory classification, rescheduling would enable cannabis to be treated more like other pharmaceutical products, potentially allowing producers in one state to sell to buyers in another. However, this transition would introduce new regulatory complexities.
Pollicella thinks that cannabis crossing state lines will require permissions, excise taxes, and strict identification as medical marijuana, and noted that states with mature medical markets, such as <a href="https://www.benzinga.com/topic/michigan-cannabis">Michigan</a>, <a href="https://www.benzinga.com/topic/pennsylvania-cannabis">Pennsylvania</a>, and <a href="https://www.benzinga.com/topic/florida-cannabis">Florida</a>, could dominate the wholesale market. 
MSOs operating in these states include TerrAscend (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TRSSF#OTC">TRSSF</a>), Cresco Labs Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#OTC">CRLBF</a>) in Michigan; Green Thumb Industries Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>), Curaleaf (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CURLF#OTC">CURLF</a>), and Verano Holdings Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VRNOF#OTC">VRNOF</a>) in Pennsylvania; and Trulieve Cannabis Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) and Ayr Wellness Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AYRWF#OTC">AYRWF</a>) in Florida.
These companies have heavily invested in CapEx for pharmaceutical-grade cannabis to meet stringent standards aligned with FDA requirements, positioning them to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39609582/europe-is-turning-cash-flow-positive-well-see-what-happens-in-the-u-s-largest-canna">supply pharmacies and other large-scale buyers</a>. "Michigan has tried to position itself as being nearly equal to FDA standards," Pollicella explained, highlighting the state's competitive advantage.&nbsp;
<h3 class="wp-block-heading">M&amp;A Activity: A Rescheduled Catalyst? </h3>
The prospect of federal rescheduling is already sparking discussions about mergers and acquisitions. Pollicella foresees significant consolidation as businesses struggle to meet pharmaceutical-grade compliance. "Companies that have grown thoughtfully and in a measured way are going to knock it out of the park," she said, emphasizing the Darwinian nature of the cannabis business.
Midwest markets, like Michigan and Illinois, are expected to play pivotal roles in<a href="https://www.benzinga.com/cannabis/deals"> M&amp;A activity</a>. Pollicella highlighted Michigan's readiness, citing its strict testing standards and proactive lobbying efforts. &#8220;Michigan has tried to position itself as being nearly equal to FDA standards,&#8221; she explained, adding that the state could become a major producer for the Midwest.
Read Also:<a href="https://www.benzinga.com/markets/cannabis/24/05/38881456/bidens-greenlight-what-to-know-about-fed-regulated-marijuana-markets-legal-circuits-and-complian"> Biden&#8217;s Greenlight: What To Know About Fed-Regulated Marijuana, Markets, Legal Circuits And Compliance</a>
<h2 class="wp-block-heading">Will A Trump Presidency Delay Progress?</h2>
Pollicella warns that<a href="https://www.benzinga.com/news/legal/24/11/42143770/trumps-pick-for-attorney-general-is-no-matt-gaetz-when-it-comes-to-cannabis-reform"> rescheduling is far from guaranteed.</a> "Anybody counting on the rescheduling of marijuana down to Schedule III in the new administration is making an assumption that's not necessarily based on anything we've seen yet," she cautioned.
While some industry advocates hope the promise of tax revenue and economic growth will sway federal policymakers, Pollicella remains skeptical. "It's not a priority for this administration," she said, adding that substantial lobbying will likely be needed to make progress.
<h3 class="wp-block-heading">2025</h3>
Despite the challenges, Pollicella is optimistic about the industry's potential under a rescheduled framework. She believes businesses with scalable production capabilities and strategic foresight will thrive. However, she also underscores the need for readiness.&nbsp;
Despite the significant political and economic discussions surrounding cannabis rescheduling, the process itself is more straightforward than many assume. Pollicella explains that the Controlled Substances Act of 1970 placed cannabis on Schedule I through political and legislative decisions, rather than medical consensus. "None of the criteria for Schedule I—no known medical use, no known safe use, and a high probability of addictiveness—really apply to marijuana," she said. As with its initial classification, rescheduling will require bipartisan consensus and can follow one of two paths.
Congress could pass legislation to amend the Controlled Substances Act, or the Attorney General could direct the FDA and <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">DEA to conduct a review</a> and implement rescheduling through administrative rule-making.&nbsp;
Read Also: <a href="https://www.benzinga.com/24/11/42220254/dea-sets-stage-for-marijuana-rescheduling-with-december-2-hearing">DEA Sets Stage For Marijuana Rescheduling With December 2 Hearing</a>
<h3 class="wp-block-heading">Political Will </h3>
"Once there's political will, it can happen like this," Pollicella said, snapping her fingers metaphorically to illustrate how quickly the process could move once initiated.
This swift <a href="https://www.benzinga.com/markets/cannabis/24/08/40632193/marijuana-rescheduling-is-not-solution-to-industrys-banking-issues-congressional-researchers-say">rescheduling would require states to align their regulatory schemes with federal guidelines</a>. Pollicella anticipates that it might follow a model similar to the 2018 hemp rollout:&nbsp;
"The <a href="https://www.benzinga.com/government/regulations/24/11/41936736/fda-commissioner-califf-candid-on-trumps-impact-we-just-dont-know-whats-going-to-happen">FDA</a> could give states with existing regulatory structures a timeline, say six to nine months, to refine their programs<a href="https://www.benzinga.com/general/biotech/24/09/40820581/want-organic-cannabis-operators-are-turning-to-this-tech-to-save-millions-and-get-certified"> to meet federal standards</a>. States that comply could maintain control, while those that don't might see federal intervention."
However, the question remains whether the upcoming administration will prioritize this process. "The real challenge isn't the steps—it's the political will to move forward," she noted.
Read Next: <a href="https://www.benzinga.com/news/retail-sales/24/11/42193387/federal-policy-could-add-3-billion-to-cannabis-industry-on-track-to-reach-55-billion-by-2030">Federal Policy Could Add $3 Billion To Cannabis Industry: On Track To Reach $55 Billion By 2030</a>

TRSSF

Pharma-Grade Cannabis Could Hit Walgreens & CVS—But Can The Industry Survive The FDA?

Florida's Department of Health announced plans to award 22 new medical cannabis licenses, a decision that could reshape the state's cannabis industry but is likely to face legal challenges. 
The announcement, posted Tuesday on the agency's website (<a href="https://www.tallahassee.com/story/news/local/state/2024/11/27/florida-picks-22-applicants-to-get-next-medical-marijuana-licenses/76623095007/">via</a> Tallahassee Democrat), comes more than 18 months after applications closed in April 2023.
See Also: <a href="https://www.benzinga.com/markets/cannabis/24/11/42225423/mexico-president-claudia-sheinbaum-to-trump-neither-threats-nor-tariffs-will-solve-your-fentanyl-crisis">Mexico President Claudia Sheinbaum To Trump: &#8216;Neither Threats Nor Tariffs&#8217; Will Solve Your Fentanyl Crisis</a>
The new licenses are a result of a 2017 law mandating an increase in licenses as the number of medical marijuana patients grows, which now surpasses 880,000. This process has attracted significant attention since it marks the first chance for new businesses to enter Florida&#8217;s medical cannabis market since the law&#8217;s enactment.
The department's letters of intent signal approval for 22 businesses out of the 74 that applied last year, each paying a $143,000 application fee. The evaluation process, carried out by consulting firm KPMG, cost the state nearly $1.79 million. However, the letters do not grant immediate operating licenses, leaving room for legal action from applicants who were not selected.
<h3 class="wp-block-heading">Anticipated Legal Battles</h3>
Legal disputes are expected to delay the process, possibly for years, given the competitive nature of <a href="https://www.benzinga.com/24/11/42017405/medical-marijuana-footprint-grows-in-florida-as-legalization-push-fizzles-and-other-new-cannabis-stores-that-launched-sales">Florida's cannabis market. </a>
"Historically, when these sorts of things happen, litigation does occur. You have 22 people that are very happy and 50 people that are not very happy at all," Department of Health spokesperson Jae Williams said in dialogue with The News Service of Florida. 
He also noted the substantial investments made by applicants and the department's responsibility to ensure that approved operators meet high standards for quality.
Applicants have called for legislative intervention to prevent prolonged delays. Attorney Paula Savchenko, who worked with Florida Sports Consultants, Inc.—operating as Belushi's Farm Florida—said the process could stall for months or even years without action.
"If we don't have a legislative fix, we're going to see these licenses held up for anywhere between six months to two years," Savchenko said.
<h3 class="wp-block-heading">Industry Shifts And New Players</h3>
Notable applicants receiving letters include Florida Sports Consultants, Inc., led by actor Jim Belushi, who also operates a cannabis farm in Oregon. Other approved businesses include STIIIZY Florida, LLC, A Good Decision, LLC and Theory Wellness of Florida, LLC. The additions bring Florida closer to doubling its licensed operators, which currently stand at 25, managing over 690 dispensaries statewide.
Quincy-based Trulieve Cannabis Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>), the state's largest medical marijuana operator, welcomed the expansion. 
"We are pleased that the licenses are finally issued, bringing the number of licensees to 47. We continue to look forward to working with the governor and legislature to expand access to safe, lab-tested cannabis for Floridians," the company said in a statement.
<ul>
<li>Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you're serious about the business, you can't afford to miss out.</li>
</ul>
<h3 class="wp-block-heading">Broader Context</h3>
The decision to award licenses coincides with <a href="https://www.benzinga.com/markets/cannabis/24/11/41780079/floridas-cannabis-initiative-defeated-trulieve-ceo-kim-rivers-nfls-ricky-williams-and-others-res">the defeat of a proposed constitutional amendment </a>that sought to legalize recreational marijuana. 
The measure received 56% voter approval but fell short of the 60% threshold needed for passage. Governor Ron DeSantis played a significant role in opposing the amendment, which had been heavily supported by industry leaders, including Trulieve.
"The majority of people in the industry would rather have had recreational pass, but we all are pretty confident that it's going to pass sometime in the next two to four years," Savchenko said.
For now, Florida's medical marijuana industry is bracing for the next phase, with new players poised to enter the market and potential legal hurdles still ahead.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/health-care/24/11/42222815/cannabis-on-thanksgiving-10-science-backed-benefits-for-a-happier-holiday">Cannabis On Thanksgiving: 10 Science-Backed Benefits For A Happier Holiday</a></li>
</ul>
Cover image made with AI.

Florida To Award 22 New Cannabis Licenses After 18-Month Wait—Legal Battles Ahead?

The U.S. cannabis industry continues its impressive growth, generating over $32 billion in annual retail sales as of 2024, according to data from LeafLink. This marks a 10.8% year-over-year increase, with $2.8 billion in sales recorded in October 2024 alone. From its humble beginnings, cannabis now operates in 41 states, with over 80% of Americans having access to it. 
Despite challenges like price declines, margin pressures and operational inefficiencies, the industry is on track to reach $55 billion by 2030, driven by regional growth and federal policy changes.
<ul>
<li>Get Benzinga&#8217;s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. You can't afford to miss out if you&#8217;re serious about the business.</li>
</ul>
<h2 class="wp-block-heading">Key Growth Drivers </h2>
Near-term growth will be fueled by rapid licensing and retail expansion in emerging markets such as New York, New Jersey and Ohio. Over the next 2-3 years, 5,000 non-MSO retailers are projected to open in key states, increasing store counts by 70%.
Federal policy reform, notably the potential reclassification of cannabis to Schedule III in 2025, could relieve the current 280E tax burden and inject $2-3 billion annually into the industry, boosting profitability.
Read Also: <a href="https://www.benzinga.com/government/regulations/24/11/42068539/billion-dollar-strike-farm-bill-amendment-could-change-the-hemp-industry">Billion-Dollar Strike: Farm Bill Amendment Could Change The Hemp Industry</a>
<h2 class="wp-block-heading">State-Specific Insights: Strong Performers and Untapped Potential</h2>
The cannabis market shows significant variance across states.
<h3 class="wp-block-heading">Top Performers</h3>
<ul>
<li>Alaska leads in sales per resident, driven by tourism, followed by Michigan and Nevada, with the latter benefiting from <a href="https://www.benzinga.com/24/11/42148169/formula-1-drivers-react-to-cannabis-smell-at-las-vegas-grand-prix-everyone-would-test-positive">Las Vegas tourism</a>, achieving the highest sales per dispensary.</li>
</ul>
<h3 class="wp-block-heading">Room For Growth</h3>
<ul>
<li>California leads in overall sales but lags in per capita sales. <a href="https://www.benzinga.com/topic/illinois-cannabis">Illinois</a> and <a href="https://www.benzinga.com/topic/florida-cannabis">Florida</a> show strong sales but lower per capita, signaling opportunities for deeper market penetration. Florida is poised for growth once recreational cannabis is legalized.</li>
</ul>
<h3 class="wp-block-heading">Emerging Markets</h3>
<ul>
<li><a href="https://www.benzinga.com/topic/new-york-cannabis">New York</a> and <a href="https://www.benzinga.com/topic/ohio-cannabis">Ohio</a> show lower sales per resident but have large population bases and expanding retail infrastructures, making them prime candidates for long-term growth.</li>
<li>Cannabis companies operating in New York include Curaleaf Holdings, Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CURLF#OTC">CURLF</a>), Ayr Wellness Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AYRWF#OTC">AYRWF</a>), Green Thumb Industries (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>), Trulieve Cannabis Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>), Verano Holdings Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VRNOF#OTC">VRNOF</a>), and Ascend Wellness Holdings (CSE:<a class="ticker" href="https://www.benzinga.com/stock/AAWH#CSE">AAWH</a>, OTC:<a class="ticker" href="https://www.benzinga.com/stock/AAWHF#OTC">AAWHF</a>). In Ohio, key players include Vext Science (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VEXTF#OTC">VEXTF</a>), The Green Organic Dutchman (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TGODF#OTC">TGODF</a>), Cresco Labs Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#OTC">CRLBF</a>), and Harvest Health &amp; Recreation (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HRVSF#OTC">HRVSF</a>), which is now part of Trulieve.</li>
</ul>
Read Also:<a href="https://www.benzinga.com/24/11/42130001/green-wednesdays-biggest-weed-buyers-the-surprising-archetypes-driving-sales"> Green Wednesday&#8217;s Biggest Weed Buyers: The Surprising Archetypes Driving Sales</a>
<h2 class="wp-block-heading">Strategic Opportunities</h2>
Wholesale cannabis sales are projected to reach $11.7 billion in 2024, an 11% increase from 2023. However, monthly fluctuations require strategic planning for both sellers and buyers. In October 2024, wholesale sales dipped 2% from the previous month but rose 9.6% year-over-year.
<h3 class="wp-block-heading">Seller Impact</h3>
<ul>
<li>Sellers in <a href="https://www.benzinga.com/topic/massachusetts-cannabis">Massachusetts</a>, <a href="https://www.benzinga.com/topic/michigan-cannabis">Michigan</a>, and Illinois see robust demand, while those in Maryland and Michigan face pricing pressure, with Maryland&#8217;s prices falling 23.2% and Michigan&#8217;s dropping 14.1%.</li>
</ul>
<h3 class="wp-block-heading">Buyer Impact</h3>
<ul>
<li>Buyers can capitalize on price dips, particularly as some states, such as<a href="https://www.benzinga.com/topic/arkansas-cannabis"> Arkansas</a> and Washington, saw price increases of 20.7% and 17.9%, respectively, while<a href="https://www.benzinga.com/topic/maryland-cannabis"> Maryland</a> and <a href="https://www.benzinga.com/topic/arizona-cannabis">Arizona</a> saw declines.</li>
</ul>
<h3 class="wp-block-heading">Pricing&nbsp;</h3>
<ul>
<li>In October 2024, the average flower price was $1,065 per pound, down $100 from the summer peak of $1,152. The price drop reflects typical seasonal oversupply from outdoor harvests in states like Michigan and Arizona. At the same time, reduced cultivation in mature markets like <a href="https://www.benzinga.com/topic/california-cannabis">California</a>, Oregon, and <a href="https://www.benzinga.com/topic/colorado-cannabis">Colorado</a> should help stabilize prices.</li>
</ul>
<ul>
<li>Maryland experienced a 23.2% price drop, while Arkansas saw a 20.7% price increase year-over-year. States like California and Arizona, facing oversupply issues, may see stabilization as cultivation is reduced.</li>
</ul>
Read Also:<a href="https://www.benzinga.com/general/market-summary/24/11/42086135/pre-rolls-the-avocado-toast-of-cannabis-why-millennials-are-spending-100m-a-month"> Pre-Rolls, The Avocado Toast Of Cannabis: Why Millennials Are Spending +$100M A Month</a>
<h2 class="wp-block-heading">Emerging Hotspots</h2>
Markets like<a href="https://www.benzinga.com/topic/missouri-cannabis"> Missouri</a> and Maryland are showing strong growth. Missouri generated $6.5 million in sales per dispensary in 2024, while Maryland reached $11.6 million per retail license. Arkansas, with its limited number of permits, is generating $7.6 million per license, signaling robust demand in a limited-license environment.
By contrast, Oklahoma has the lowest sales per license, at just $0.4 million, due to oversaturation with over 1,800 licenses, presenting opportunities for consolidation or increased operational efficiency.
<h3 class="wp-block-heading">Long-Term Outlook: A $55 Billion Industry by 2030</h3>
The U.S. cannabis industry is projected to reach $55 billion by 2030, driven by retail expansion in states like New York, <a href="https://www.benzinga.com/topic/new-jersey-cannabis">New Jersey</a>, and Ohio, as well as continued growth in mature markets like Illinois and Florida.&nbsp;
Read Next: <a href="https://www.benzinga.com/general/market-summary/24/11/42049450/can-trumps-return-save-the-cannabis-sector-debt-mounts-as-giants-face-post-election-reckoning">Can Trump&#8217;s Return Save The Cannabis Sector? Debt Mounts As Giants Face Post-Election Reckoning</a>
Source Acknowledgment: This article is based on insights from <a href="https://www.leaflink.com/">LeafLink&#8217;s Fall 2024 U.S. Cannabis Industry Report </a>and other relevant industry data. All projections and trends discussed are sourced directly from the report, which includes sales figures, state-specific insights, pricing trends, and wholesale dynamics for the cannabis sector.
Disclaimer: The projections and data shared in this article are based on the most current information available as of the Fall 2024 report. Results may vary, and the cannabis industry is subject to ongoing regulatory changes, market fluctuations, and shifts in federal policy.

AAWHF

CSE:AAWH

HRVSF

GREEN ORGANIC DUTCHMAN by Green Organic Dutchman Hlgds.

TGODF

Federal Policy Could Add $3 Billion To Cannabis Industry: On Track To Reach $55 Billion By 2030

Despite flat earnings and challenging market conditions, Cresco Labs Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#OTC">CRLBF</a>) remains an &#8220;Overweight&#8221; stock, according to analysis firm Zuanic &amp; Associates. In his latest report, Zuanic underscores Cresco&#8217;s strong positioning in emerging adult-use markets such as Pennsylvania and Ohio while identifying valuation advantages that set the company apart. 
Cresco trades at 5.5x forward EBITDA, below Green Thumb Industries Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>) at 7x and Curaleaf Holdings Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CURLF#OTC">CURLF</a>) at 10x. 
&#8220;This discount presents an appealing entry point for investors looking beyond short-term volatility,&#8221; Zuanic writes.
<ul>
<li>Get Benzinga&#8217;s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. You can't afford to miss out if you&#8217;re serious about the business.</li>
</ul>
<h3 class="wp-block-heading">Market Dynamics: Cresco In The Tier 1 Landscape</h3>
Zuanic's report benchmarks Cresco against other Tier 1 multi-state operators (MSOs), including Green Thumb, Trulieve Cannabis Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>), Verano Holdings Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VRNOF#OTC">VRNOF</a>), and Curaleaf.&nbsp;
While Cresco&#8217;s third-quarter revenue of $180 million fell 2% sequentially, the decline aligns with broader industry trends, with peers like Curaleaf and Verano posting declines of 3% and 5%, respectively. By contrast, Green Thumb achieved a 2% increase, reaching $287 million.
<a href="https://www.benzinga.com/cannabis/earnings">Adjusted EBITDA margins </a>further illustrate Cresco's position: the company held steady at 29% in Q3, compared to Green Thumb at 31% (-200 basis points) and Trulieve at 34% (-100 basis points). However, <a href="https://www.benzinga.com/quote/CRLBF">Cresco lags in adjusted cash flow.</a>&nbsp;
Its negative $3 million adjusted figure for the first nine months of 2024, factoring in tax liabilities, contrasts sharply with Green Thumb's $139 million (17% of sales) and Trulieve's $37 million (4% of sales). <a href="https://www.benzinga.com/topic/pablo-zuanic">Zuanic highlights</a> cash flow conversion as a critical area where Cresco &#8216;lags&#8217; its competitors.&#8221;&nbsp;
Read Also: <a href="https://www.benzinga.com/24/11/42145406/nebraskas-cannabis-legalization-faces-courtroom-showdown-over-alleged-fraud">Nebraska&#8217;s Cannabis Legalization Faces Courtroom Showdown Over Alleged Fraud</a>
<h3 class="wp-block-heading">Valuation Analysis: Digging Into The Numbers</h3>
Cresco's <a href="https://www.benzinga.com/cannabis/earnings">valuation metrics reveal potential upside</a>. Its enterprise value (EV) to current sales ratio stands at 1.6x, lower than Curaleaf and Green Thumb, both at 2.2x. This discount extends to EV-to-EBITDA multiples, with Cresco trading at 5.5x compared to Green Thumb at 7x and Curaleaf at 10x.&nbsp;
These figures include tax liabilities, financial net debt, and other obligations. "Cresco's lower EV multiples, alongside its gross cash holdings of $157 million, make it a compelling value play among Tier 1 operators," Zuanic explains.
<h3 class="wp-block-heading">Strategic Hurdles And Growth Catalysts</h3>
Despite these advantages, Zuanic identifies several hurdles. Cresco&#8217;s total leverage, including financial and tax liabilities, amounts to 80% of trailing sales, the highest among Tier 1 MSOs. In contrast, Green Thumb's leverage is just 9%. Moreover, while Cresco holds promising positions in <a href="https://www.benzinga.com/topic/pennsylvania-cannabis">Pennsylvania</a> and <a href="https://www.benzinga.com/topic/ohio-cannabis">Ohio</a>, Zuanic emphasizes the need for a strategic partner to close the scale gap with peers like Green Thumb and Curaleaf. &#8220;A partnership would help Cresco achieve operational efficiencies and capitalize on upcoming recreational markets,&#8221; he notes.
Zuanic&#8217;s projections account for regulatory uncertainty, including delays in Pennsylvania's adult-use legalization timeline to mid-2026 and the potential impact of federal rescheduling challenges. Nonetheless, he remains optimistic about Cresco's long-term prospects. &#8220;We see Cresco as a buy for investors with a one-to-two-year horizon, particularly given its discounted valuation,&#8221; he concludes. 
For a deeper dive into his methodology and projections, <a href="https://zuanicgroup.com/">visit Zuanic &amp; Associates' research portal</a>.
Read Next: <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">DEA Slammed For Unlawful Talks With Cannabis Opponents &#8211; The Plot Thickens</a>

80% Leverage, 5.5x EBITDA: Is Cresco The High-Risk, High-Reward Play Investors Need?

Comments

Trulieve Cannabis

Trulieve Cannabis (TCNNF) Options

No option chain data available. Please try again later

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga