Of these, seven are involved directly or indirectly in the state-legal American cannabis industry. Q1 revenue of nearly $34 million was down from a year ago, but excluding JUUL sales, revenue advanced as gross margin improved. The REIT, which now has a market cap in excess of $2 billion (based on fully-diluted in-the-money shares), has been aggressively raising and deploying capital to leading American cannabis operators. Historically, much of the trading and investing has taken place in Canadian companies due to federal legalization there and the fact that the stocks trade on higher exchanges and have extensive broker coverage, but the strong fundamentals for American companies are emerging. Additionally, given that many of them trade on higher exchanges, I expect that renewed enthusiasm about the prospects for the American cannabis industry will lead to more interest in ancillary providers, which accounted for the majority of the seven companies I discussed here.

Source: Forbes June 07, 2020 16:18 UTC