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Topical! And didn't expect it'd be MJ getting crossed up, did you?
Dominant Performance: Florida cannabis operator Trulieve has regained over 50% market share in its home state, defying expectations that increased competition would eat into its dominant position. The rebound comes after a share decline to 45% in the fall, when MSOs aggressively expanded in Florida following the repeal of a ban on smokable medical marijuana. The gains proved short-lived, as other competitors have slowed new dispensary openings (or even closing some open ones), while Trulieve has opened four since January. Moreover, Trulieve’s stores are doing roughly four times the per store sales of its competitors.
Why It Matters: While other companies retrenching from “non-core” markets, Trulieve is still executing on their original strategy: own the high hell out of the Florida market. When everyone was covering as much ground as possible as fast as possible in recreational states, some might’ve faulted their strategy to hone in hard. Now, as Trulieve successfully defends their market share, posts positive profitability and outperforms on the stock market, a lot of companies’ new “visions” are sounding... a lot like Trulieve’s original gameplan. Safe to say the shorts are probably a little disappointed so far.

Staying SAFE In Corona: House Democrats announced the HEROES Act, a new $3 trillion coronavirus stimulus package, which included provisions directly pulled from the SAFE Banking Act. If approved, the measures would strive to allow state-legal businesses to access banking and credit with The SAFE Act had passed the House in the fall, but has languished in the Republican-held Senate, as Senate Banking Chairman Mike Crapo has promoted his own approach to cannabis banking. The Heroes Act appears likely to similarly clear the House, but faces a Republican Senate that believes further stimulus may be unnecessary.
Why It Matters: Nice to see legislative priorities haven’t been sidelined. Including the Safe Act within the new COVID-19 stimulus is a savvy move, even if it doesn’t include the direct relief for cannabis business some have called for. Broader access to banking would be a huge bit of relief in its own right. But, for the near-term, the odds of progressing as slim, as the GOP would likely revise the bill substantially (if they even consider it at all). And, as this nice dive into cannabis banking showcases, even if SAFE passed tomorrow, a lot of banks probably just wouldn’t want to deal with the multitude headaches of cannabis banking that would likely still remain.  

Galaxy Brain Status: Enterprise resource planning (‘ERP’) software aspires, in many ways, to be the brain of businesses - aligning different departments and systems to give a better real-time picture and control of the full business. While cannabis is expanding rapidly, its software suite hasn’t necessarily paced its needs or growth. Canix CEO Stacey Hronowski explains how she’s trying to build a cannabis ERP for the industry’s future in this week’s Long Read.

Quick Hits

Research Rips

👍 Cannabinoids Have Positive Effects On MS Spasticity-Related Symptoms
👍 CBD May Have Anti-Depression Effects Through DNA Methylation  
👍 One Psilocybin Dose Shows Improvements In Cognition and Behavioral Despair In Rats
👍 Cannabinoid Medicines May Have Epidermolysis Bullosa Treatment Potential

❓ Heavy Cannabis Use Affects Gene Pathways, Although Not As Much As Tobacco

State Legalization Watch: 0/5 : After a slow few weeks on the state-by-state front, some real action this week! Maybe we'll notch a few against our prediction this year... 

Recapping some of our best and most recent long reads

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