This company may be rolling in the profits in Florida, but there’s one major hiccup…
For cannabis companies, I like the strategy of building an early foothold in a state where only medical marijuana is legal. It’s getting more competitive to do that, but it’s a strategy that can work for the right companies.
It touches on two important issues: Branding and having an infrastructure in place.
Even though it’s only legal to sell medical products in Florida right now, the dispensaries doing so are building brand awareness ahead of recreational legalization. Medical patients can help educate their friends and family members about the brands that they use and trust.
Then, when legalization rolls out, those friends and family members will visit the same dispensaries that have recreational licenses and buy products from the same brand.
In terms of infrastructure, companies with a medical dispensary now have the edge over companies entering the market after recreational legalization. Current medical dispensaries pretty much already have everything needed in place to sell recreational cannabis.
That brings me to an important update I wanted to share. With 10,000 new patients signing up each month, there’s a cannabis land rush in Florida right now.
And if you’ve been following along with industry news, you may have seen that this company is second highest in sales for smokable cannabis in the Sunshine State…
Winning in Florida
Currently, Liberty Health Sciences Inc. (CSE: LHS, OTC: LHSIF) has 16 open dispensaries in Florida, and it plans to open three more dispensaries in August. It is also one of the first companies in the state to offer smokable medical marijuana.
Originally, smokable cannabis was illegal in the Sunshine State.
But, thanks to Senate Bill 182 that was signed in March, qualified patients can receive up to 2.5 ounces of whole flower every three days. Currently, there are over 240,000 people who qualify for smokable cannabis use.
Thanks to this bill and its early moves, Liberty says it has the second highest sales of smokable cannabis in Florida.
“Our outstanding results are directly driven by the strategy that we have been implementing,” Victor Mancebo, Interim Chief Executive Officer of Liberty said in a statement.
One cannabis niche is on track to grow 15X FASTER than the overall market… and we’ve identified two companies in it that are trading below $4. To find out more, just go here.
This is all good news for the company, but there are a few reasons why it hasn’t made it into our model portfolio.
One is competition. MedMen Enterprises Inc. (CSE: MMEN, OTC: MMNFF) isn’t far behind Liberty in terms of Florida dispensaries, as its planning to open 12 this year. Curaleaf Holdings Inc. (CSE: CURA, OTC: CURLF) has 25 dispensaries in Florida, according to its website.
Acreage Holdings (CSE: ACRG, OTC: ACRGF) also entered Florida with the acquisition of Nature’s Way Nursery in January, and remember that Acreage will have the backing of Canopy Growth Corp. (NYSE: CGC) when cannabis is fully legal in the United States.
As a part of my deep dive into Liberty, there are a few other concerns I have with the company. For those who are currently utilizing our NICILytics stock rating system, you can find my full report right here.
For those who want to take the next steps and learn more about accessing our database of over 180 cannabis companies, click here.
In terms of the bigger picture, I hope this shows you the importance of taking a deep dive into a company and not just buying shares based on one news release.
Executive Director, National Institute for Cannabis Investors
P.S. If you’re ready for a chance to make some quick cash on the cannabis industry, this secret strategy is for you. Using this strategy, our data shows you could’ve seen $7,194 in 11 days, $15,424 in four days, and even $17,500 in just 24 hours. So if you’re ready to potentially make triple- or quadruple-digit gains in a few weeks or less, then this method is right for you. You can find more details right here.
6 responses to “This Company Is Raking in the Cash in Florida”
July 29 2019