Welcome to 2020: The Boom & The Bust - Market Update - Jan/7/2020

Happy New Year! In this market update we cover the good and bad for the start of 2020!

- 2020 will be a year of Strong Catalysts driven by Fundamental Growth

- There will also be significant headwinds to navigate

Illinois Goes Full Rec:

- Banner first day with $3.3M USD sales + $2.2M on 2nd day

- $11M USD of sales in 5 days (with customers paying $20 USD/gram of flower)

- Illinois will be a great market in 2020 and 2021, with a strong sales ramp and limited licenses

Ontario Retail:

- 45 dispensaries to open in Ontario Q1-Q2 (licenses were granted last year)

- 160 new retail licenses in 2020 in Ontario (~225 granted by end of 2020 and ~475 by end of 2021)

- This will greatly help ramp Canadian sales in 2020 and 2021

Cannabis 2.0 Launches in Canada:

- 2.0 products shipping this week to retail and online next week (in Ontario)

- These High Margin products will greatly drive sales for the entire industry

- Very limited supply of products initially with many more to roll out over next 6 months

- Will be similar to flower – under supply then over supply

- We debate the strict marketing rules and how fast companies should be moving

Vaping Bans:

Quebec banning vapes and raising age to 21

Alberta delaying vapes until spring (at least)

US News:

- Debt Deals for Curaleaf ($275M USD) + Harvest ($73M USD)

Curaleaf - $275M USD debt deals // Harvest - $90M USD debt deal

- Trulieve Short Report

Florida – Rec vote not looking good, suing for more time (flower got approved by lawsuit)

See full Florida point-by-point rebuttal here: https://www.reddit.com/r/weedstocks/comments/ebztnd/my_analysis_of_the_trul_trulieve_short_report/?utm_source=share&utm_medium=web2x