Home Business The CEOs of Trulieve, Ascend Wellness are showing growth in several states

The CEOs of Trulieve, Ascend Wellness are showing growth in several states

68
0


CEOs by nature remain optimistic groups, but with an increasing number of states offering growth in the adult cannabis business, the leaders of Trulieve Cannabis Corp. and Ascend Wellness Holdings Inc. there are many opportunities to expand revenue as these new territories are the line this year.

Trulieve
TCNNF,
+ 3.24%

TRUL,
+ 0.77%

and Ascend Wellness
AAWH,
+ 5.47%

published mixed results in the first quarter, but due to the fact that several states have launched programs to use cannabis in health and adults, the company has focused on prospects in Florida, New York and New Jersey.

The acquisition also remains on the table, especially for Trulieve, who completed the acquisition of Harvest Health & Recreation Inc in October. from Arizona for $ 2.1 billion as one of the largest mergers and acquisitions in the industry.

Trulieve Cannabis on Thursday reported a first-quarter net loss of $ 32 million, or a share of 17 cents, from net income of $ 30.1 million, or a share of 24 cents in the previous period.

By breaking down items related to the acquisition of Harvest and other one-time expenses, the company was earning a penny per share, which is below Wall Street’s estimate of 3 cents per share, according to FactSet.

Revenue grew 64% to $ 318.3 million, ahead of the $ 306 million mark.

The company received $ 45.1 million in cash flow from operations and ended the quarter with a cash balance of $ 267 million with operations in 11 states.

Trulieve still expects year-over-year profits of $ 1.3 billion to $ 1.4 billion. The FactSet consensus was $ 1.34 billion.

With a market share of 30% in Florida and 100 stores Sunshine State continues to offer opportunities for growth, said MarketWatch CEO Kim Rivers.

“We will continue to build our trail in Florida – we don’t expect it to slow down,” she said.

During the first quarter, the state booked an average of 3,700 new patients with medical cannabis per week.

Trulieve remains on track to increase its presence in Maryland and Florida, as well as growth in Pennsylvania and West Virginia, and sees additional investment in Arizona.

Trulieve also continues to look for opportunities to buy smaller cannabis companies in the southeast, northeast and southwest of the country.

“We will be interested in these centers and on board [small] operators within that trail, ”Rivers said. “We have a strong balance sheet and proven access to capital, and we will remain opportunistic.”

Also read: In the northeast, Acreage is developing a cannabis business

Ascend Wellness looks at the presence of the Big Apple

On Wednesday, Ascend Wellness said its first-quarter losses fell to $ 27.8 million, or 16 cents a share, from $ 48.2 million, or 45 cents a share, last quarter.

Revenue increased to $ 85.1 million from $ 66.1 million.

According to FactSet Data, Ascend Wellness failed to reach its Wall Street target, losing 3 cents a share and an estimated revenue of $ 86.4 million.

Co-founder and CEO of Ascend Wellness Ebner Curtin said the company is set on its prospects of adult cannabis use in New Jersey: one store is open and two more are in the Garden state.

He is also preparing for a larger presence in New York after reaching an agreement with MM Enterprises USA LLC
MMNFF,
+ 11.36%

in the lawsuit over the sale of MedMen NY Inc.

Ascend Wellness has agreed to raise the purchase price by $ 15 million and $ 88 million from $ 73 million to satisfy a lawsuit filed Jan. 14 between the two cannabis companies.

Even for $ 88 million, this purchase is much less than Etain’s $ 247 million acquisition of RIV Capita Inc.
CNPOF,
+ 2.51%

a division of the Scotts Miracle-Gro Co.
SMG,
+ 3.21%
,
to enter the New York market, Curtin said.

The NY MedMen deal includes four medical dispensaries in Manhattan, Long Island, Syracuse and Buffalo, as well as a cultivation complex in Utica.

“We are very excited about New York,” Curtin said. “The seller did not like the price, which created the situation.”

Ascend Wellness plans to keep the MedMen outlet on Fifth Avenue, which has been described as Apple’s weed store.

“It’s a great place for locals and tourists,” Curtin said.

Trulieve shares fell about 44% in 2022 as cannabis stocks weakened in the face of low prospects for federal legalization and general stock market unrest due to inflation and recession.

Ascend Wellness fell 48.8% in 2022, while AdvisorShares Pure Cannabis ETF
MSOS,
+ 3.15%

decreased by 44.5%.

Also read: That’s why Curaleaf doesn’t allow headwinds and sticks to the 2022 profit view

Previous articleThe rupee continues to weaken, the profitability of G-Sec is growing
Next articleExclusive US FAA declares Boeing 787 certification documents incomplete – Reuters sources