The market turmoil of the past few months has proven to be highly disruptive for most stocks and even more so for cannabis stocks. However, Trulieve Cannabis (CSE:TRUL) (OTCQX:TCNNF)has proven to be one of the few exceptions and since the middle of March, the cannabis company has seen its stock gain as much as 100%. Considering the gains made by the company, it might be a good idea for investors to take a closer look at Trulieve.
This past Thursday, the company made an announcement that could have a positive effect on the stock. Trulieve announced that the Cannabis Commission of the state of Massachusetts has awarded the company with the approval for two provisional recreational marijuana licenses.
It is a significant development for Trulieve since it indicates the the company is intent on expanding outside its stomping ground of Florida. Moreover, both recreational and medical cannabis are legal in Massachusetts, unlike in Florida where only medical cannabis is legal. One of the two licenses is for a manufacturing and growing facility in Holyoke and the other is for a cannabis dispensary located in Northampton.
The company currently operates a total of 50 dispensaries and as many as 48 of those are located in Florida. The only two dispensaries outside Florida are in Connecticut and California.
Trulieve has also been doing well on the financial front and that was proven by its performance in the 1st fiscal quarter. The company announced the financial results on May 20 and generated record quarterly revenue of as much as $96.1 million. That reflects a year on year rise of as much as 116% and sequential rise of 21%.
In addition to that, the company’s net income touched $14 million and adjusted EBITDA came in at $49.4 million. In the prior year period, adjusted EBITDA came in at $19 million. In the period that ended on March 31, Trulieve boasted of cash and cash equivalents to the tune of $100.8 million.