While there’s no doubt that the federal legalization of marijuana would make the industry explode, current trends shouldn’t be underestimated.
U.S. cannabis sales are projected to surpass a whopping $57 billion by 2030 in currently legal states, according to New Frontier Data in partnership with FTI Consulting. Should another 18 states legalize cannabis, that figure would climb to above $72 billion.
Despite so many legalization efforts, and the recent introduction of a comprehensive federal cannabis reform proposal, many industry experts believe that the bill’s chances of becoming law are slim. However, many observers seem to agree that the SAFE Banking Act, a bill that would enable marijuana businesses to access banking services, has the best chances at passing the Senate and ending up on President Joe Biden’s desk.
Reports of the long-awaited legislation being introduced sent cannabis stocks soaring. The passage of the SAFE Banking Act would likely have a similar effect on pot stocks. What’s more, it would definitely make a historic impact on the industry, which currently struggles with access to banking.
So, who are the biggest players in the U.S. cannabis game? The top five U.S. cannabis operators by market capitalization include Curaleaf (OTCQX:CURLF), Trulieve (OTCQX:TCNNF), Green Thumb Industries (OTCQX:GTBIF), Verano (OTCQX:VRNOF) and Cresco Labs (OTCQX:CRLBF).
Executives from all five of these MSOs will be speaking this year at the Benzinga Cannabis Capital Conference in Chicago. If you'd like to learn more about the booming marijuana industry, then mark your calendar for Sept. 13 and 14, and learn from the best.
Until then, let’s take a closer look at these industry leaders, and their market caps, right now:
1. Curaleaf, $4.25 billion
The Wakefield, Massachusetts-based cannabis operator has operations across 22 states and runs 134 dispensaries and 26 cultivation sites. Curaleaf’s focus is on highly populated states, such as Arizona, Illinois, Florida, Massachusetts, Pennsylvania, New Jersey and New York.
Its most popular brands are Curaleaf and Select, which recently launched "The Farmer's Select" program (limited-edition collaborations with licensed legacy farmers and diverse operators in California).
The company also has operations abroad, with Curaleaf International being considered the biggest vertically integrated cannabis company in Europe. In June, Curaleaf International's Medalchemy, GMP certified manufacturing site in Alicante, Spain received approval from the Spanish Health Authorities to begin operating out of its newly built extract manufacturing site and microbiological testing laboratory. In this way, the company has secured two more licenses in Spain to increase the manufacturing capacity of medical cannabis extracts.
Curaleaf’s shares gained 19.42% over the past month. The company’s SVP of Corporate Social Responsibility, Khadijah Tribble, will take part at Benzinga Cannabis Capital Conference.
2. Trulieve, $2.376 billion
This vertically integrated marijuana business operates in 11 states. It prides itself on having one of the leading market positions in Arizona, Florida and Pennsylvania. Among its most important recent business moves is a billion-dollar merger with Harvest Health & Recreation Inc. that was completed in October.
Under the deal between the two cannabis giants, Trulieve acquired all of the issued and outstanding subordinate voting shares, multiple voting shares, and super-voting shares of Harvest. In total, the Tallahassee, Florida-based company issued an aggregate of roughly 50.9 million of its shares in connection with the transaction in exchange for all of the issued and outstanding Harvest shares.
The deal enriched Trulieve with a robust retail network, having a total of 149 dispensaries right after the merger. The company also obtained Harvest brands, including Alchemy and Roll One. Via this merger, Trulieve became one of the biggest and most profitable cannabis operations in the U.S.
More recently, the company has been focused on further expansion of its dispensary network, opening stores in Hollywood, Apopka (Florida), Hurricane (West Virginia), among others.
Over the last 30 days, Trulive shares gained 1.78%. At this year’s Benzinga Cannabis Capital Conference, Trulieve’s CEO, Kim Rivers, will be a keynote speaker.
3. Green Thumb Industries, $2.3 billion
Green Thumb Industries is a national cannabis consumer packaged goods company and retailer. Its portfolio of branded marijuana products counts Beboe, Dogwalkers, Doctor Solomon’s, Good Green, Incredibles and RYTHM. GTI also owns and runs growing national retail cannabis stores called Rise.
Based in Chicago, Illinois, GTI has 7 manufacturing facilities, 75 open retail locations and operations across 15 U.S. markets. Since its launch in 2014, the company grow to employ around 3,800 people and serve millions of patients and customers each year. The company was named to Crain’s Fast 50 list in 2021 and a Best Workplace by MG Retailer magazine in 2018 and 2019.
Following GTI’s strong first-quarter earnings report in May, Cantor Fitzgerald’s analyst Pablo Zuanic retained an Overweight rating on the company's stock with a $39 price target. Zuanic said in his note that the combination of benefits from the ramp-up in the Garden State and the company's expansion in Virginia and Minnesota may be "offset by macro trends and continued price deflation."
GTI opened two new stores in Virginia, Rise Lynchburg and Rise Christiansburg, in February.
In Minnesota, GTI purchased LeafLine Industries – one of two licenses in the state - for approximately $150 million. The deal included a cultivation facility, five open and operating retail locations in Eagan, Hibbing, St. Cloud, St. Paul and Willmar and the opportunity to open up to three additional retail locations in the state.
Green Thumb stock went 19.54% up over the last month. The company’s board member Wendy Berger will be a keynote speaker at Benzinga’s September Conference.
4. Verano Holdings, $2.01 billion
This Chicago-based marijuana operator is known for its innovative cannabis products included in its portfolio of consumer brands — Verano, Avexia, Encore and MÜV. Verano’s portfolio encompasses 14 U.S. states, with active operations in 13, including 13 production facilities comprising over 1 million square feet of cultivation capacity. The company manages dispensaries under retail brands including Zen Leaf and MÜV.
In the recent period, Verano has been focused on expanding its presence in states it already operates, opening MÜV Sebring, its 52nd cannabis dispensary in Florida. In June, it reached a milestone — opening its 100th store in the nation — Zen Leaf Wynnewood — in Pennsylvania.
For the first quarter ended March 31, 2022, Verano reported revenue of $202 million. That's an increase of 67% compared to the first quarter of 2021. While its revenue improved, net loss also grew to reach $7 million in the quarter, compared to $2 million in the same period last year.
Verano shares remained flat over the last 30 days. The company’s chief investment officer, Aaron Miles, will take part in Benzinga’s Cannabis Conference.
5. Cresco Labs, $934.67 million
Cresco Labs is one of the biggest vertically-integrated multi-state cannabis operators in the U.S. It combines a strategic geographic footprint with one of the leading distribution platforms in North America. It is also known for employing a consumer-packaged goods approach to cannabis. Among the company's most popular brands are Sunnyside dispensaries, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal.
The company also operates one of the industry’s largest social equity and educational development initiatives, SEED, which was designed to help its members acquire the necessary skills, knowledge, and opportunities to be part of the booming industry.
In March, Cresco announced one of its biggest moves — the $2.1 billion acquisition of its rival Columbia Care (OTCQX:CCHWF).
Upon the finalization of the deal, Cresco is expected to become the new leader in North American cannabis, obtaining the largest annualized pro-forma revenue in cannabis at more than $1.3 billion. Its footprint would reach 18 states, including the most important cannabis markets. Furthermore, Cresco would have a diverse retail footprint with more than 120 retail stores.
Cresco’s shares grew 25.17% over the last month. The company’s CEO, Charlie Bachtell, will be one of the keynote speakers at the Benzinga Cannabis Capital Conference.
Join us in Chicago and meet these amazing executives from five top cannabis multi-state operators at the world’s largest and most successful cannabis investing and finance event on Sept. 13-14 at the Palmer House Hotel in Chicago.
Get your tickets HERE.
Photo: Courtesy of Michael Moriarty from Pixabay
