Why Trulieve Cannabis Corp (OTCMKTS:TCNNF) Could be Forming a Fresh Bottom

Why Trulieve Cannabis Corp (OTCMKTS:TCNNF) Could be Forming a Fresh Bottom

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If we are in fact starting to see some form of resurrection of the momentum trade in the cannabis space, then all eyes should be on Trulieve Cannabis Corp (OTCMKTS:TCNNF) as an interesting oversold play to watch for a coming turnaround. Indeed, we may have seen some signs of it on Tuesday.

In terms of recent catalysts, the company just announced that it has opened the doors of a new Clearwater Beach location on Friday, August 16th. According to the release, the new storefront marks another milestone as the company’s 31st physical Florida location opens its doors and expands access to patients in Clearwater Beach.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

The company distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”

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As noted above, TCNNF just announced that it has opened the doors of a new Clearwater Beach location on Friday, August 16th.

Recent action has seen 6% added to share values of the listing over the past week of action. Moreover, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 81% over the long-run average.

“When we were getting started back in 2016, Clearwater was our second store. Just over three years and 28 stores later, our Clearwater location remains one of our busiest dispensaries in the state with a patient base that has remained loyal and committed through the growing process. Having the opportunity to open a dispensary in nearby Clearwater Beach enables us to serve those loyal patients by providing an additional option for meeting their medical needs,” said Trulieve CEO Kim Rivers. “Since day one, our mission has been to ensure patients across Florida have access to high-quality, safe, and effective relief and this new Clearwater Beach location will continue to support that mission.”

Currently trading at a market capitalization of $294M, TCNNF has a significant war chest ($70.6M) of cash on the books, which is balanced by about $82.6M in total current liabilities. One should also note that debt has been growing over recent quarters. TCNNF is pulling in trailing 12-month revenues of $221.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 157.6%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $TCNNF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $TCNNF, either long or short, and we have not been compensated for this article.

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