Slipping Weed Sales In Florida’s Market: Is This $100M Bet Really Worth The Hype?
Despite pouring millions into the push for adult-use cannabis legalization, Florida’s cannabis market is showing signs of strain.
According to a recent report from Beacon Securities, financial backing for the legalization campaign has surged, yet dispensary sales have slipped during the third quarter of 2024.
Companies like Trulieve Cannabis Corp. (OTC:TCNNF) and Curaleaf Holdings Inc. (OTC:CURLF) are leading the charge with significant contributions, but the growing number of dispensaries and external factors, such as Hurricane Helene, have raised questions about whether the market’s fundamentals justify the hype.
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Turbocharged
The Smart & Safe Florida campaign, responsible for spearheading the adult-use legalization efforts, received a significant financial push in September.
According to the report by analysts Doug Cooper, Russell Stanley and Donangelo Volpe, Trulieve Cannabis recently added $9.5 million to its contributions, while Curaleaf contributed $1 million. To date, the campaign has raised over $100 million, with more than $24 million still available.
Diluted Growth
Per-dispensary sales in Florida showed signs of softening during Q3, impacted by an increasing number of dispensaries and temporary disruptions like Hurricane Helene.
The state saw a 4% quarter-over-quarter (q/q) rise in dispensaries, with nine companies adding a total of 26 new locations.
According to the report, Trulieve alone accounted for 12 of these openings.
Overall, flower sales volume in the state increased 3% q/q, while oil-based product sales dipped 1%, with both categories showing slower growth compared …