Trulieve Cannabis Corp - TCNNF stock
Company Profile[edit]
Trulieve Cannabis Corp. (OTC: TCNNF, CSX: TRUL) is a vertically integrated medical cannabis company based in Florida, U.S. The firm and its subsidiaries engage in the cultivation, in-house production, and distribution of finished cannabis products. Trulieve produces capsules, concentrate, edible, flower, dissolvable powder, vaporizer cartridges, and topical and nasal spray commodities. Its brands include Avenue, Alchemy, Co2lors, Cultivar Collection, Loveli, Modern Flower, Muse, Momenta, Roll One, and Sweet Talk. The firm distributes its products within the U.S. via Trulieve branded retail stores (dispensaries) and through home deliveries. Its geographic hotspots include the Northeast, Southeast, and Southwest. It was initially known as Schyan Exploration Inc./Exploration Schyan Inc. before changing its name to Trulieve Cannabis Corp. in September 2018. The company was incorporated in 1940 and had its headquarters in Quincy, Florida. It is listed on CSE under the TRUL symbol. The firm's shares are traded on OTCQB Markets under the TCNNF ticker.[1]
Business Operations[edit]
Trulieve is a multi-state operator in the United States with operations cutting across Arizona, Florida, and Pennsylvania markets. The company focuses on capturing the continuously growing cannabis market by advancing innovative, high-quality cannabis products via its established brands. The company also invests in optimal customer experience and increasing the availability of its pipeline to improve access by patients and customers. Via its hub strategy, the company believes it is destined for accelerated growth and expansion through the prompt building of retail and distribution channels in existing and new markets. Regulated markets require operators to have sustainable cultivation, manufacturing, retail, and distribution facilities. Trulieve employs various extraction techniques, including vital ethanol extraction, hydrocarbon extraction, carbon dioxide extraction, and mechanical separation. The company also utilizes its fully-owned carbon dioxide extraction, distillation, and purification asset and its manufacturing technology to produce an array of cannabis topicals and vapes, such as cannabinoids.[2]
As of September 30, 2022, the company operated a total of 176 dispensaries, with 120 dispensaries distributed across Florida state, 19 dispensaries in Arizona, 19 affiliated dispensaries in Pennsylvania, three in California, in Maryland, three in Massachusetts, one dispensary in Connecticut, and eight in West Virginia. The company also oversaw cultivation and processing activities in multiple states, including Arizona, Colorado, Georgia, Maryland, and Massachusetts. The company also had more than 8,000 employees. The firm's business and operations are centered around the Trulieve brand philosophy (‘Customers First’) that is circled on top quality and efficient cultivation and manufacturing techniques.[3]
Acquisitions[edit]
The company has actively made strategic acquisitions to increase its production and distribution capacities in its existing and new markets. The company also has long-term lease agreements, with options to extend, for most of its cultivation and manufacturing facilities and dispensaries. The firm has made a couple of significant acquisitions over the past two years, including:
Greenhouse Wellness WV Dispensaries, LLC.[edit]
Trulieve bought 100% membership interest of Greenhouse Wellness WV Dispensaries, LLC on April 26, 2022, at an approximate price of $0.3 million, consisting of cash. Greenhouse WV holds a West Virginia dispensary permit and a lease for a proposed location.
CP4 Group, LLC.[edit]
The company acquired a cultivation operation from CP4 Group, LLC, in Phoenix, on February 14, 2022, at $27.5 million paid in cash and an additional $22.5 million deposited via escrow for four potential earnouts.
Harvest Health & Recreation Inc.[edit]
On October 1, 2021, the firm acquired 100% of Harvest Health & Recreation, Inc.’s common shares and a portion of its VIEs. Harvest was one of the United States’ largest multi-state ‘seed-to-sale’ operators in the cannabis industry. The deal cost approximately $ 1.4 billion.
Purplemed Healing Center[edit]
On December 28, 2021, Trulieve purchased 100% of the distinguished assets of Purplemed, including a Purplemed Healing Center administered by the Arizona Department of Health Services and the Marijuana Establishment License (ADHS) advanced to the company by ADHS. The licenses permitted Purplemed to operate a cannabis retail dispensary and access the associated lease.[4]
Brands[edit]
On January 20, 2023, Trulieve announced the launch of Highsman, a purpose-driven lifestyle marijuana brand championed by Ricky Williams, an NFL legend. The legend echoed the brand, recommending it for people seeking greatness and mental and spiritual well-being.[5]
Funding[edit]
9.75% 2024 Notes[edit]
Trulieve has successfully completed the redemption of its entire outstanding senior secured 9.75% notes due in 2024, totaling $130,000,000. The trading of these Notes on the Canadian Securities Exchange came to an end as of the close of trading on December 1, 2023.[6]
8.31% Secured Loan[edit]
Trulieve received a loan in December of 2023 for $25 million, secured by a cultivation site in Florida. In is a five year loan with an interest rate is 8.31% and the proceeds are intended for general corporate purposes.[7]
7.3% Secured Loan[edit]
On December 22, 2022, the company made public the closure of a 10-year financial debt arrangement clinched by a cannabis cultivation and manufacturing facility based in West Virginia for approximate gross proceeds of $18.9 million. Truliev committed to a 7.3% fixed interest rate over five consecutive years, after which it resets at a five-year Treasury plus 3.5% interest for the remaining phase. The company secured the loan to facilitate general corporate operations.[8]
Management[edit]
Executive Leadership[edit]
Kim Rivers, Founder, Chairman, and CEO
- Joined the company in its early stages and has been instrumental in the firm’s customer-centric vision, strategic expansion, robust growth, and profitability
- Ensures quality, operational transparency, and financial success in the firm’s operations
- Has several years of experience in the private sector as a lawyer specializing in mergers, acquisitions, and securities
- Holds a Bachelor’s degree in Multinational Business and Political Science achieved from Florida State University.[9]
- ↑ Seeking Alpha. TCNNF Profile - TCNNF. Accessed on 1/28/2023.
- ↑ CNBC News. Company Details – cnbc.com/quotes/TCNNF?tab=profile. Read on 01/28/2022.
- ↑ quotemedia.com. TRULIEVE CANNABIS CORP. - QUARTERLY REPORT according to SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934, Page 40. For the period ending 9/30/2022.
- ↑ quotemedia.com TRULIEVE CANNABIS CORP. - QUARTERLY REPORT according to SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934, Pages 10, 11, & 12. For the period ending 9/30/2022.
- ↑ Trulieve.com. Trulieve Launches Highsman Cannabis Products from NFL Legend Ricky Williams in Arizona. Retrieved on 01/29/2023.
- ↑ PR Newswire. Trulieve Announces Completion of Redemption of All US$130 Million 9.75% Senior Secured Notes due 2024. December 1, 2023.
- ↑ PR Newsire. Trulieve Announces Closing of $25 Million Financing. December 27, 2023.
- ↑ PR Newsire. Trulieve Announces Closing of $18.9 Million Financing. January 29, 2023..
- ↑ Trulieve.com. Executive Leadership . Retrieved on 01/29/2023.
OTC Symbol: TCNNF | OTC Tier: OTCQX International
