TRUL CN

Trulieve Cannabis Corp

Consumer


Presented:03/19/2019
Price:CA$15.63
Cap:$1.37B
Current Price:CA$16.43
Cap:$2.46B

Presented

Date03/19/2019
PriceCA$15.63
Market Cap$1.37B
Ent Value$1.31B
P/E RatioN/A
Book ValueCA$1.08
Div Yield0%
Shares O/S109.81M
Ave Daily Vol233,337
Short IntN/A

Current

PriceCA$16.43
Market Cap$2.46B
Trulieve Cannabis Corp. engages in the provision of medical cannabis products. It operates through the Dispensaries and Cultivation/MFC segments. The firm cultivates and produces its products in-house and distributes to its branded stores, as well as directly to patients via home delivery. It offers stock keeping units, including nasal sprays, capsules, concentrates, syringes, cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges. The company was founded on September 21, 2018 and is headquartered in Quincy, FL.

Publicly traded companies mentioned herein: Green Thumb Industries Inc/CA (GTII CN), Trulieve Cannabis Corp (TRUL CN)

Highlights

The presenter is long shares of Trulieve Cannabis Corp (TRUL CN), the Florida-based cannabis company that trades in Canada. He believes that while TRUL’s operations consist of medical marijuana sales currently, it has formed a solid operation that will capitalize on the opportunity as legalization spreads across the US (he expects Florida to legalize recreational marijuana in 2020). Shares are cheap, currently trading at ~C$16, which is ~6x his “conservative” 2020 EBITDA estimate. The current multiple to expected 2020 EBITDA, based solely on medical marijuana sales in Florida, is ~12x. As such, there could be 100% upside for shareholders on the back of a strong Florida market (including some contribution from recreational sales), assuming the multiple holds. Additionally, there appears to be optionality as TRUL expands to California and Massachusetts.

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Idea Discussion

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