Trulieve and Ascend Wellness CEOs chart multistate growth

CEOs by their nature remain an optimistic bunch, but with more states to offer growth in the adult use cannabis business, the leaders of both Trulieve Cannabis Corp. and Ascend Wellness Holdings Inc. have plenty of room for revenue expansion as these new territories come on line this year. Trulieve TCNNF, +4.32% TRUL, +2.63% and…

CEOs are by nature optimistic, but there is more potential for growth in adult cannabis sales. As these new states open, leaders of Trulieve Cannabis Corp. as well as Ascend Wellness Holdings Inc., have lots of revenue potential.

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Ascend Wellness
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The companies issued mixed results for the first quarter, but with the emergence of adult and medical cannabis programs in many states, they focused their attention on the prospects in Florida, New York and New Jersey.

Acquisitions remain on the table too, especially for Trulieve Cannabis, which in October closed the $2.1 Billion acquisition of Arizona’s Harvest Health & Recreation Inc. as the largest M&A deal in the industry.

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

After subtracting items related to Harvest and other one-time expenses, the company earned a penny per share. This is below the Wall Street estimate at 3 cents per share. According to FactSet data.

Revenue increased by 64% to $318.3 million, ahead of the $306 million estimate.

The company booked $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 full-year revenues of $1.3 billion to $1.4 million. According to FactSet, $1. 34 billion.

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

“We will continue to expand our Florida footprint, and we don’t expect it to slow down,” she stated.

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

Trulieve continues to grow its presence in Maryland, Florida, and West Virginia. Additionally, it sees increased investment in Arizona.

Trulieve continues to search for smaller cannabis companies in the Southeast and Northeast.

” We’ll be looking for opportunities to buy smaller cannabis companies in the Northeast, Southeast and Southwest. “We have strong balance sheet and proven access to capital and we’ll remain opportunistic.”

Also Read: Acreage sees cannabis business sprouting in the Northeast

Ascend Wellness eyes Big Apple presence

Ascend Wellness on Wednesday said its first-quarter loss narrowed to $27.8 million, or 16 cents a share, from a loss of $48.2 million, or 45 cents a share in the year-ago quarter.

Revenue increased to $85.1 million from $66.1 million.

Ascend Wellness fell short of the Wall Street target for a loss of 3 cents a share and the revenue estimate of $86.4 million, according to FactSet Data.

CEO Abner Kurtin, co-founder of Ascend Wellness, said that the company is optimistic about the prospects for adult cannabis use in New Jersey. There are currently one store in New Jersey and two more in the works.

It’s also preparing for a larger presence in New York, after settling with MM Enterprises USA LLC
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in a lawsuit over the sale of MedMen NY Inc.

Ascend Wellness agreed to hike its purchase price by $15 million $88 million from $73 million to settle the lawsuit filed Jan. 14 between the two cannabis companies.

Even at $88 million, the purchase is much less than the $247 million acquisition of Etain by RIV Capita Inc.
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a unit of Scotts Miracle-Gro

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