Despite momentum towards marijuana legalization, the country’s biggest cannabis companies are failing to turn a profit. Trulieve Cannabis (TCNNF), which currently operates in 11 states, recently reported a net loss of $32 million. The stock is down 42.8% year-to-date.
According to Trulieve CEO Kim Rivers, the Florida-based company feels the wind at their backs after acquiring multi-state operator Harvest Health and Recreation for $2.1 billion.
“We are absorbing and digesting a very large transaction that we closed October 1,” Rivers said on Yahoo Finance Live (video above). “It was actually the largest cannabis transaction to date. So we had 55% improvement quarter-over-quarter on that loss number, and that loss was attributable to one-time and non-recurring charges, including some synergies with the disposition of inefficient cultivation assets, as well as the disposal of a duplicative location. That’s going to clear throughout the year and we’ll get back.”
Trulieve still generated over $45 million in its latest quarter. Nationwide, legal marijuana sales are estimated to reach more than $30 billion in 2022.
“We really couldn’t be happier in terms of our positioning for future growth,” Rivers said.
Political headwinds
Trulieve isn’t the only cannabis company to have a tough 2022. Alternative Harvest ETF (MJ) is off 29% year-to date, while Canada-based Tilray (TLRY) is down 28%. [Read More @ Yahoo]
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