Shares of Florida-based cannabis multi-state operator (MSO) Trulieve Cannabis (CSE:TRUL,OTC Pink:TCNNF) saw a double-digit jump thanks to the start of smokables in the state.
The company confirmed the start of sales for smokable items on Thursday (March 21), with the first sale taking place at its Tallahassee dispensary.
On Monday (March 18), Florida Governor Ron DeSantis officially removed the ban on smokable cannabis products, according to a report from the Tallahassee Democrat.
The state faced a lawsuit and the eventual vote supported lifting the ban and allowing the sale of these products.
“Offering these whole flower products to our patients in their purest, most effective form is something we — and patients — have been looking forward to since we opened the doors of the state’s first dispensary,” Kim Rivers, CEO of Trulieve, said in a press release.
Trulieve had an 11.35-percent bump to its share price and finished the trading day at C$18.35 per share.
The company holds a market capitalization of C$136.2 million.
Trulieve, which has 26 dispensaries in the state, informed shareholders that Florida now has over 190,000 registered patients capable of buying medical-marijuana products.
During its fiscal Q4 2018 results conference call, Joseph Lusardi, CEO of fellow MSO Curaleaf (CSE:CURA,OTCQX:CURLF), said the company now expects the Florida market to double thanks to the change in the state.
The executive added that he also now expects to see some form of policy on edibles this year. Curaleaf currently operates 22 stores in Florida.
Despite its status as a medical-only market, Florida has quickly ascended as one of the top states in the minds of analysts.
Both Neal Gilmer, an analyst with Haywood Securities, and Matt Bottomley, director of equity research at Canaccord Genuity Group (TSX:CF), have expressed bullish sentiment for the state.
The market has attracted the attention of fellow MSO Cresco Labs (CSE:CL,OTCQX:CRLBF).
Alongside the lift on the smokable products on Monday, the firm announced it will pay US$120 million for the acquisition of VidaCann.
This venture holds in its portfolio seven active dispensaries. Additionally, three new stores have been completed and are only missing operational approval, with four extra stores set to be under construction by June.
According to research from the Arcview Market Research and BDS Analytics, the Florida cannabis market is estimated to be worth US$1.7 billion by 2022.
During the Canaccord Growth Investor Day event in Vancouver, Rivers told the audience she is not expecting to see a vote on adult-use marijuana until the 2024 elections.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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