Trulieve Cannabis (TCNNF)

Lynn Ricci Director of Investor Relations
Kim Rivers Chief Executive Officer
Mohan Srinivasan Chief Financial Officer
Robert Fagan GMP
Russell Stanley Beacon Securities
Jason Zandberg PI Financial
Call transcript
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Good day, ladies and gentlemen. And welcome to the Trulieve Cannabis Corporation Second Quarter 2019 Financial Results Conference Call. My name is Julie, and I will be your conference operator today.

As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Ms. Investor Trulieve. of Director Ricci, Relations for Lynn

You may begin.

Lynn Ricci

second and thank discuss today you Julie. Cannabis results Good Mohan joining are And Chief ladies morning, Corporation's Trulieve Executive for to Thanks, Kim for Rivers, With Officer gentlemen. us Financial corporate Officer. highlights of Chief quarter XXXX. and and me financial Srinivasan, today

Following call to our questions. prepared remarks, we will open the

materially shareholders, I call benefit may those started, statements. involve get our would media individuals, is of could uncertainties risks, from recorded we note that today's number other like a interested Before that include forward-looking other factors cause the being for investors, remember differ that parties. that the and results to actual of and forward-looking Please statements today discussion to

and quarter and and XXXX, our June in call making Certain applied are risk with forward-looking connection the were MD&A and under These we the material press considered the today's for statements. in ended factors heading making factors release statements. forward-looking that earnings furnished included in in XX, applied in assumptions

MD&A the earnings is release. XXXX, that measures other profitability We to press of the Company's for performance on and reference these most made XX, any referenced information. end provide this this IFRS reconciled of our at in are on as table provided the forward-looking ended and be measures the presented unlikely considered Trulieve. be speak this measures should quarter metrics. to greater of by Any measures well measures to order using today, believe only statements and not to measures by IFRS assume these forward-looking The call financial our an as Also, demonstrated remarks prepared comparable update financial regarding non-IFRS transparency non-IFRS as financial no companies. further in June our Any morning the obligation non-IFRS non-IFRS required financial non-IFRS to financial directly alternative comparable to call are in

results Please may second news note of U.S. section were A to trulieve.com, reported the XXXX. be for the references site filed MD&A night, SEDAR. we statements Web also our on through our accessed dollar that Relations quarter Investor and of all of are and release, financial dollars. Last copy

a In available our call addition, will today's of Web on webcast conference be site.

over Now, I this CEO, will turn our Rivers. call Kim to

Kim Rivers

Thank Thanks you joining everyone. so for Lynn us. good and much morning

you are to We very our all a financial excited and with business results share provide update today.

take my our and financial questions. will remarks, we your discuss quarter second results happy be then, Mohan to Following will

had revenues on which happy for was and strategic quarter, to night, $XX.X Trulieve. revenue performance on we're a basis, our for Last XX% we an tracking quarter-to-quarter sequential I'm this increase of Trulieve strong of and again was very the record producing second million our results. Now with quarter announced another how plans. against quarter,

course, Of story. Trulieve, revenue at was only the half

in $XX Our second EBITDA compared million XX% was quarter $XX.X XX% the QX XXXX. million, adjusted or in or to

for profitability leading apart sets is Trulieve. differentiator industry an important Our and us

national presence. the future and The our half we setting focused progress strengthening made and into support first strong our building Trulieve and to growth, on half business, foundation first are of explosive positioned was a substantial on now XXXX infrastructure the in for well efficiencies the of year growth.

walk the me of Let through you highlights. some

establish our area requirement is which us gaining to for greenhouses. with compressions, price world a to acreage combat efficiencies has of Vertical ways the Greenhouse First, scale focus share have our us I to through finally footprint. full indoor been Florida, for and for we to integration in excited An our looked am us leads and data. leverage experimental future

additional to our generally to These to ways of primarily shift greenhouses, facilities experimentation provide premium as and have indoor-grow biomass, our efficient alternative expand and will capacity oil feet and square cost-effective low on expand also into speak allow XXX,XXX mentioned segments our for the us shifts. to a cultivation. focus increased greenhouses we highly to of, established flower market scale is addition cultivation In cost we which greenhouse large

As significant amount capacity. have to a we adding our such, and been cultivation

we expected capacity which kilograms. cultivation As all footprint have cultivation approximately in wanted to completed, worth indoor Combined, XX,XXX million will square when under with before bring of biomass X,XXX,XXX just completion XX,XXX we sites construction said, kilograms. Plus, have had Trulieve have and discussing broadly, square we to the XX,XXX total feet QX, feet and we of more data with X.X biomass now of years' grow capacity feet a our active during square that. over across

medical In of we recreational keep and Florida. expected ahead marijuana We've of XX nearly of already there. expansion four Jefferson acres state. This the QX, indoor County, out continuous also cultivation phase X future we Phase build importantly, wholesaling supply opportunities current will construction to as Florida's in announced future future in started and plan allow demand the and our purchase both

For the have state-of-the-art capacity XXXX, been critical production significantly, allows us of and facility. is GMP Trulieve in keep our This increases processing of transformation certified ahead also to our first another for demand. half we operating as it

underway in quarter had to and output increase product facilities automation our innovation. second the launched a During our number we efficiencies, initiatives of further or

platform, investing automation in initiative by the planning enterprise undertook we initiatives, addition software major resourced In transformative SAP. to an a

anyone it integration, For has onboard. there out time fully you been understand takes and to commitment who operational SAP the through

already completed recently are Our SAP seeing we and customized implementation, analytical benefits. operational and this teams

interface experience, positive site Web to example, for Our online shopping overwhelming allows customers enhanced feedback. SAP, to have garnering an

store inventory XX% segment the These continue the SAP online allow imperative we With sales our a build to efficiently. and more to us scale continue Greenhouse ordering, of added implementation, efficiency the capacity, strong grow this it such infrastructure is initiatives, as automation for best-in-class experiences. visibility that business. to projects, of patient the throughput enhancing driven at efficiencies, our thereby through addition, to level greatly In enhanced will

we our us do and support will national organization. dedicated our over let operations and bench key discipline and And capital are a growth the best so class of focused In seasoned on which strategic the to and view level, The initiatives to level in as initiatives a bring for addition, assets professionalism in also team, team. of the intelligently. our investing to look add at require employees, as scale these the implementation we strong, on that we of human this and XXXX we With into in plans strength. plan a invest continue recruit to foundation

an as experience, Peter grow business Healey joining our provide insights brings Peter impressive background with capital as our to will Board an demonstrates accelerated that fresh and pace. commitment, financing at continues legal Directors and of market

In leadership add managers addition, expansion to national we prepare have the efforts. for continued to team

to and board scale our add as business continue ahead, Looking geographic up we footprint. bench grow both and our we and corporate strength lines our will product

investment now capital we our and are of capitalized These plans. growth areas need execute course, to of well on and

has Operating company the us team a Our ground reinvest allows to hit our profitable the in business. continually running only earlier and increased. year as pace this

to However, and we rapidly would capital evolving quickly more in faster determined that a be increasing industry to end path goal. our agile allow provide our our us

dilution financial of in July, Holyoke, we completed public industry. sold debt public aggregate debt first in $XX that with property we record, pure offering strong offering a announced we was in on build amount our In back minimizing Massachusetts, June, million, principal the an the which execute a and out based In raising cannabis business place. Massachusetts, that while lease the with our plan, us and shareholders, true happy am public lease solidly the the in favorable I capital a debt on for Win-win. say plan to back offering provide to our

extension In of Company's addition, value in We confidence mind, The in the was with agreement. will the strategy. a release believe voluntary announced the lock-up our and of show market value. in last shares month liquidity increase long-term the of XXXX, create we shareholder measured voluntary extension summer allows a the thoughtful extension and orderly to up which lock shareholder approach this also and to for

we why helps us we be decisions. customer in in base sets in is where enter. approach passionate going? will just best we differentiates and which don't believe the capital states growth, are Trulievers', the apart dedicated customer fund have and us place leader business to class form that have infrastructure the we with So, customers market, us a experience We we and a Trulieve's to in

and expect initiatives national will efficiency for new this the our company a on And effectively that level. build on We diversification are importantly, a allow customers. compete have to advantage, our executing will wide we positive us to impact initiatives enterprise across sweeping intelligent

in-house our to we to a focus of which business tier, to three for the national lines, and retail as the one shared re-establish we expand anticipation market under for Currently, to new brand's and how beyond re-segment and few profitable how the with sold. grow as quarters, Florida. time last our on product brand Trulieve had go expansion ideal With standard are all products organically we our strategy, this well wholesale, of approach a and Over potential in how's stores. re-merchandise diversify our intend is brand the Trulieve

segmentation initiative on the markets. underway, clear customer product for currently along Our refresh based segmentation a packaging product is new brand addressable to for with allow

just and highlight to completed product a allow partnership new In our stores products. to segments addition, space proper refresh display offering brand for

level. that industry, Speaking leading selectively of some the in partnered of to with and plan local partners, vision the a continue has national Trulieve on brands brand cannabis we and

our in our Loves products partnerships such innovative able with exciting As we're leaders, view part market Blue favorite, We've brand competitive and these industry national and the Bhang, partnerships three-tier as approach, Binske, customer Oven, as differentiator and of bring we brands. with partnerships are We River. to shelf. building to another established new as local SLANG,

connect in exciting the forward exceptional an product deliver in their For vape experience. Florida. Building Trulieve. leading edition, carts extension Open strategic to brand, SLANG name, first the on we July, a and with brands consistently we more O.penVAPE Florida announced be is and in we Trulieve RESERVE our example, were under an patients of quality of here service, aim to industry to RESERVE, offered which an and with the partnership customer SLANG launching product popular early look

in loyalty of past, track boomerang on our market. based an the to we As covered size customer use internal patients our in report sample

those With and dispensaries, just our who quite suggesting on respectively. and product are of of who higher XX% to north to the trending These X ability just strong than and Florida. in boomerang traders, Truliever's our reflects maintain remain and becoming to with lead Our July, Truliever's report. are in are XX%, live brand more hop metrics based are different our around numbers X% those which strength dropping last hoppers points patients our

succeed. to to will we multi-state operator. both setup our smart mixture other leading compelling a where in-stores us to disciplined vision deliver a graph to and a organic our product against instead organic all placed market. and service has and business company and aligns inorganic believe the range on a approach. growth execute makes the of foundation We see of be online a highest quality, skews leveraging potential maintaining This A solid the plans players growth, most importance strategic in expansion Also, strategic customer need and of with of our on targeting future strength and diverse partners sense mix states M&A competitive share approach to we land and strong

aggregator. As we say, a multi-state a multi-state not are we operator,

aspect to Florida We an our cover basis In dominant hold medical with mission. Trulieve experience our time. forward. where our maintain our impressive Florida, mandate and and a optimal believe are state we customer this market patient now our Delivering on expansion the are of target we advantage position at foundational growing Florida. I'll of home to part first-mover of cannabis customer is share. starting moving maintain one large and vibrant awareness or patient we for a with a is plans, the state-by-state intend ensuring a

XX% of XXX,XXX the explosive The to patient comes we count flower, the patients of as patients attention at the to base amazing and XX,XXX With visited reflects the increasing the growth a sizeable patient second to the service make. patients quarter, second in these store and end the of Florida ways an count of ahead for our our smokable with ever patients additional dispensary, increasing Trulieve In result the demand. investments our need to new patient patient Trulieve the quarter. Florida in keep

to open with We by end. this we in today Florida year Clearwater And currently XX open stores morning, more have approval store in tomorrow. just planned got XX another Beach

to year. We making accelerating we'll the be are store our our rollout, the of on progress pleased build dispensary second half out be new in and

first quarter our flower. was smokable quarter second The with full

approved to was sales of our state. XX% sale XX% executed Flower in are flower today compared March may Florida, flower nearly product now you first As mix smokable call. in QX reported as the recall, in on of our and the Trulieve earnings approximately smokable

needs with success and our flower quick meet to ability demonstrates manner. efficient in Our evolving patient a

month report, was is trailing discount a nearly Trulieve and achieved flower the our need of to market an for basis, in dispensed nearest flowers sold On into average the deep XX% state. the one periods. share the reporting according This sales over three without OMMU competitor, times leading of the

the For maintained of the market estimated market may dominant we hold and state. second oil share with sales, an sold blend XX% milligrams and our quarter, flower share in overall a in

and that believe stores XXXX, from will the mentioned and soon branded edibles, products ready we rules. earlier expand look patient as geared are to as as launched Trulieve the In up well into brand be addition, DoH edibles to partners releases we in corresponding bringing fully for our We access. forward the edibles of as introduction

Florida, Looking by medical for to use the requisite would of use a included market trigger optimistic within a Recently, ballot cautiously legalization state. beyond numbers XXXX November recent surrounding are the question legalize the was adult be of the to review that language cannabis. the adult achieved the developments in in we signatures in potential

is next the maintain the to the or high, successfully on. our we leadership question delivering Florida our and on customer ballot and by will intend get are expansion, experience hold through are position confident future Trulievers count While by hurdles encouraged the to initiative. in lead expect placed continue the We to we

included announced Now, marijuana the Healing a a of portion we of only turning May, are very translating propensity profitability. for revenue place, in Connecticut. experiences, entrenched Connecticut. very into medical for acquisition quarter, pleased to Corner, customer We see a delivering continued in The Healing Bristol, In numbers we customer performance the an the the with and dispensary Corner base. but Connecticut team the the great loyal in team were

June, under, accepted Review will increased and conditions for XX patients which the new to growth and qualifying conditions total it for for to Regulation Committee. added XX program, XX In five state. into by could Connecticut's patient bring were medical and growing Connecticut's approved treatment Once in qualifying the adults marijuana translate

We the excited in a have marijuana the likelihood could upside also XXXX. reality adult will in In can revenue Connecticut property family, that have short, part believe We're hopeful be converted forward and are the happy use and recreational into dispensary team and we're extremely there's Healing to space. adjacent high become that additional as for a potential bring, to Corner Trulieve of future. the looking

we Industries XX% additional our ownership total of the bringing in California, an Leef of of recently XX% the almost June, Company, to acquired Inc., In outstanding there. ownership

for direction. cross Springs the a R&D wide Palm state evaluate located is Our location our and to optimally section exploring of

We continue to driving for identify market. and this explore options

for developing potential partnerships. We progress search our Holyoke in with advancing made facility dispensaries, Massachusetts. Trulieve QX Turning now to significant activities our and cultivation since and

build cultivation facilities we early of and earlier, functional XXXX in XXXX Hampton dispensaries in wholesale to start processing progress Massachusetts, place made and Holyoke. cultivation financing building in the by the order inventory in production plan participate North And have in the We thriving location. in for and beyond. to mentioned and market now planned the online with for out have our we dispensing facility As

of number economic a with working is Trulieve Also, empowerment applicants.

to applaud Massachusetts our a to diversity is have provide to core and ongoing efforts program empowerment true a company, within industry. help robust build thriving place is mentoring businesses a economic and our owned values the in accelerator the goal establish capital Our to as seed program. minority to we executive in Ensuring

just M&A end. lot four also the states in of to states goal pipeline a achieve underway there's we year activity In touched to of on, being our addition six by

interesting as Our us. and remains or and such, for target continually an adult team most And Many are important the evaluating that the states programs targeting debating northeast area the is strategic landscape. we use enacting markets. in

of values is delivering Geographic potential profitability critical to ensure M&A to high are also philosophy best potential key Trulieve profitability, dedicated growth opportunities the that reach to It experiences. with meet that and ensuring own or a customer acquisitions targets to the location accretive. standard the aside, and for M&A matter quickly it with relative combination exceptional is transactions is have we aligning markets. are in also these Trulieve ourselves company important

I'll now hand to Srinivasan Mohan? quarter the financial call Mohan our over to discuss second results.

Mohan Srinivasan

XX, a increase with review million, which quarter second experienced growth XXX% you, revenue ended Trulieve quarter-over-quarter the Thank significant as sequential June of XXXX. good represents Kim, and proceed same the now year. achieving in of quarter increase over second last everybody. the morning Kim the XX.X mentioned, I'll quarter and record XX% of

second increase of driven by For acquisition quarter, Corner, growth $X.XX. of we the in was flower sales, achieved share from store quarter and in the Healing openings. revenue revenue reported earnings per realized Connecticut second new primarily the The in the our

which second The into biological biological under assets revenue first value profit with billion, accounting the in changes XX.X of s of sciences the million, in XX.X the value for before was quarter, the is gross IFRS XX% the quarter. account second relatively or fair quarter XX%, net require in fair line taking change net standard of and or

operating XX.X and For million net of quarter, of income Company million. the the income second XX.X had

fair As is XX, gross June a months of percentage of based a profit, income a advisors. percentage XX% discussions our more on measure of including in this before biological net as and effective stable our with value better of the than We calculating ended tax three for the tax was taxes XXXX. effective assets, change believe rate rate tax

compared in quarter. increased EBITDA the was quarter-to-quarter revenue a of adjustment XXXX increase XX% XX.X XX inventory. unsold growth million of sequential basis, or the an increases of in adjusted driven costs March On Our the the by of associated quarter or XX%, revenue EBITDA primarily assets by and million in in for adjusted biological adjusted EBITDA to second XX% with

our cultivation financial to facilities of new come the year. second the in pace it expect accelerated the fluctuations biological the the more we and online, policy, as from openings is fluctuates see accommodate the half Under expense store or of assets cost the inventory, and grow to growth should in whether as inventories quarter-to-quarter in

costs expenses, interest, profitability adjusted as EBITDA non-IFRS into from provides We valuable depreciation insight tax our non-cash accounting Adjusted for believe, the EBITDA reported inventory, other net help assets We assets. to expenses related of biological performance. and adjusted the non-cash and biological assess to our and performance income, effects excludes investors measure business. income unsold and growing report EBITDA of RTO operating

Florida, Turning stores had the quarter. XX end our now second to we operating a metrics. the total In store of at of

and were locations opened in QX same-store XXXX first the the for For increase quarter showed quarter quarters QX XX%. for open sales in of sales and of entire XX the by XX entire second increased that stores XX%. quarter-over-quarter a XXXX The XXXX both

to including a As as our mentioned, victory them and declare Kim of we experimental continuation. part start are ready on greenhouses

the the in with capacity feet As we've XX,XXX experimental greenhouses, July, XXX,XXX feet combined biomass square with cultivation of combined with at of disclosed square a said kilograms. today previously footprint we X,XXX,XXX are

our reported and the the XX,XXX patient September, of provide indoor in by by previously Between just the our our XX,XXX kilograms. planned with grow Based pace in the will growth, additional our constructions which delivering square than ability of planned expected in more demand. to capacity stay cultivation we of indoor X,XXX,XXX execute will Florida the combined keep square with mentioned, feet, QX end ahead quarter of an end greenhouses construction and double and a on cultivation expect us store we annual biomass of of to feet we

XXXX. and same $X.X stores quarter these to related to the in are retail, last cost half or to increase the expenses, or were marketing now revenue, primarily cost new second category of XX% in store costs The related related expense million for quarter, sales costs to largely to Turning of opened and to second amounted year. openings preparing that in additional dispensary million cost XX% was in of second $XX.X due the the for and compared revenue this for period

$X.X year. the to period in G&A are $X.X for X% for the was the approximately and to of or revenue, quarter cost the revenue the expensed. last Corner Healing compared Included $XXX,XXX or related same which is debt million of transaction, G&A X% cost issuance million

these G&A are X%. the Excluding at up costs, expenses

reflect current the and in cost also stock infrastructure levels, same and period public totalling ended expenses the in mix G&A million depreciation as to June $X.X $XXX,XXX year. related a increase non-cash compared Other XXXX, last to XX, for company. include quarter growth operating expenses amortization

now completing to our financing recent balance Moving public a balance and million activities. by In we offering. debt our sheet sheet June, $XX strengthened

and closed entered innovative property addition to $X.X QX, we facility for with sale subsequent properties lease cultivation triple agreement a In Massachusetts our industrial in we on of net our the Massachusetts. into wholly-owned million for

Company’s the XXXX, can just recoup As the increase from $XX estate $XX.X part of represents the XX, million XXXX. at December This million. we building million of million. cash the transaction $XX build-out, $XX.X of lease, was of real XX, At June terms cultivation improvements, mentioned, to an prior balance up for brand to

flow $XX facilities. activities the million cultivation related in to from This was generated by million offset the for our financing processing of completed cash stores, debt result and investing operations, and expansion June XXXX, approximately from primarily $XX million $XX of of

EBITDA provided full we for guidance for an last Finally, XXXX. year XXXX quarter revenue outlook and and

exercise half our financial reaffirming our discipline, are guidance, our a strong reflecting while We the we scale. outlook as continue second leveraging for

and based not year expected revenues anticipated in XXXX. store are Massachusetts million to does forecasted $XXXmillion generating our to of adjusted range store footprint contemplate Florida, plus, $XXX revenues current Full with EBITDA openings. This $XX XXXX on approximately of the $XXX new side in in million million

adjusted XXXX million to California. current XXXX $XXX on growth, generating our as as expansion EBITDA. Connecticut in estimate regulations to markets, million Based for these foreseeable continued and into of and $XXX Florida, $XXX in range $XXX outlook million well Massachusetts we incorporates million, Our growth in revenues store the

Kim, closing I'll remarks. to for hand over now Kim. this

Kim Rivers

cannabis to focused reiterate that closing, our is a vision brand to while still In delivering Mohan. true our build shareholders. customers, I to profitability on want Thanks,

the second XXXX of we and first is on half of year. are in steam full in the strong another half ahead team state us for performance well for moving quarter. up track Our here the has The sunshine the set

efficiencies plans reach on efficiencies a leveraging drive business the We're diversity, markets, and and disciplined and target and looking presence foundation diversification strong plans, fall second which new the are to a the our dedicated national and value. to expansion support business through diversification, to half plans forward deploying earlier includes: team explosive replicating executing growth to employing the capital and year, execute on growth strong, our smartly outlined to the in shareholder competitive scale strategic differentiators of and establishing and aggressive future Trulieve's during

We any Operator. will for the questions. line now open


Please [Operator first with comes from Robert Instructions] Your go ahead. you. GMP. Thank question Fagan

Your line is open.

Robert Fagan

QX. about congrats and biological the fantastic we profitability margin little would guys, I insight nice bit thanks profitability of the adjust some you driving on just cost my increased maybe in assets, Hey, ask quarter that? looks for on XX%. what and your was Can first for questions I us gross thought north a give the the taking If here. into like

Mohan Srinivasan

this Sure. Rob, you, question. asking Thank for

online, is with increases fluctuations or the quarter-to-quarter, as cultivation grow and know, pace assets by to of inventory. whether as policy, expense point, cultivation come they more half in continue of you accelerated should facilities store the some our second financial and normalize associated from biological the should EBITDA, increased, and inventories adjusted it in biological expect grown costs adjustment are in increase our year. new As accommodate the they XX%. costs or for assets in driven XX% profit We at in gross the opening to inventory. Under the basically primarily fluctuate At the

Robert Fagan

of addition Okay around on new greenhouses, the you, forward. just indoor kind Mohan a ahead got that in question move facility. for allocation like capital to expanding the capacity even of of Obviously, increase you've experimental that. light big in going Thank a previously I'll really Maybe of

new have towards the that know So about in I M&A? to you you're some in the go some that into your way capital, respect, are because had going maybe allocating now does up two you kind states build devoted of other mentioned still enter M&A could public you that year, change of maybe And think more past kind of from players, larger of in the by include you going new this that states? end ground to

Kim Rivers

for we the are question, fluctuate, and capital as respect pipeline With risk will time. Thanks does at opportunities and M&A, allocation, being again all the that to both the Rob. evaluating goal look the with aligned opportunities And we with this and And in think a creating accretive. more financial being alignment, first being I on players strong of know discipline and importantly, you definitely also line in from focusing others. our culture, customer a brand differentiates which industry

we to quarter. sure the we that felt we last first and had our make that to that backing we respect the hand on execute guidance half make capital With on year released that capital cultivation to footprint, adjusted had our we've focused sure very been the of on

to good and having the And spot to numbers. the so, we with do feel that we're and a perform infrastructure satisfy in place respect in to

Robert Fagan

Okay, have this the states still holding mean, into so additional to by that? do Or year, entry upside reiterate, that, is maybe to I are just potential? maybe guys even

Kim Rivers

as We are but a goal the of by to perspective call, and as come. from review still end on holding and we very we're know, still and opportunities holding as opportunistic we qualitative discussed we're states; the of will in course X of Rob we they being and the a year,

Robert Fagan

I'll Okay, and one then queue. back last in get

final have and unconstitutional; Following wondering of how suggest court's structure of I And when perhaps play some to kind the Florida into that look vision just appellate do kind we could updated see of any do out? timing have decision vertical to were kind what that? could the ultimate on like you any integration in requirements you could perhaps resolution when

Kim Rivers

I'll the from ball Sure, take you. question crystal

referring -- that to And the the the court sharing, an so for means weeks the we're en you're the level state ruling banc of be -- or at And or couple which the a ago of whether and all be governor's banc full filed that of specifically hearing now judges that will for that not. if case appellate the not is right by level, now see granted, the granted court, appellate will that to en so reheard. office waiting

gut we'll XXXX this for, for could and be state. into who way and timing that cannabis for my if respect in which of medical and move appealed Florida know take beginning to been the around and that resolution, you full regardless, as some guess so to And and all Florida. And and those And Court, the with some and likely push the course the time, best issue cannabis Supreme will state and always around we'd there’s you look markets anyone's time. on following pull in final session is have some of quite at of here

I don’t Florida think in our than different here any state others. is

we’ll level. the on provide look a of to pivot down making best-in-breed supply with what that focused most to continue our to evaluate best-in-class, business, and building heads changers. chain the we’re comes along So, ability been for We’ve of policy sure from always a policy us and those flexibility kind down, regardless


ahead, with Our Securities. question comes Beacon go is open. next Russell from Please your Stanley line

Russell Stanley

congrats and the Good on quarter. morning

dispensaries for world us number secured? First and continued I you where are given remind retail is guess And How scheduled guess you April. believe number follow out. locations on Can planning that, cap the around to at beyond with the to of to you I the I question that? the build you’re next the respect of

Kim Rivers

the question. for Sure, thanks

got tomorrow. stated, So, we’ll final the prior as open have dispensaries the to We’ve from actually approval, call to we we to morning in Health able of currently be open, number approval Department this be Florida XX opening XX that. just

XX to track all and underway, next coming going of towards XXXX. our the and open we’re Those while announcements as the have we on for and to opening we’ve that bit guided forward to move stores. in lot are We’re well of out a

set the Beyond is at XXXX, know, XX Cap as you Trulieve stores.

currently under number are All actually of and and pipeline the that. beyond a stores in development

come preparing up optimistic looking in that forward will very that April. And cap are and to are much so, being we that, that removed impact and to

Russell Stanley

color guess question in throw answered other Thank adult ball in another for of questions. that I I’ll you around Florida. the and crystal use my one

extent wondering what other guess observed sort I use around what goes getting any you’re it at the key barriers do done, which see far initiative in on so you in XXXX? of supporting having the adult Just to the states to and

Kim Rivers


on working So, Regulate that Florida, with we’ve already Court been have their which a petitions review. the the initiative group started. grass call, a local Cannabis, the roots for and mentioned supporters just Florida for brand Supreme and that called dispensaries timing have have our on a hurdle partnered also with been cleared that called, the ground, been in while it from is And Regulate I've Sunshine which we

matching past this Florida there over are currently Actually, just to skew approximately Regulate their are their They another month. and launched week getting in to this we of royalties donations of all that XX% initiative.

approved that any single by that a other certainly And among So, are effort. nature initiative that, Supreme other, and it's of requirements, subject hurdles the signature of course, it’s be the Florida for we and requirement procedural in a specific supporters then among are Court effort. in in

with a initiative this on ballot citizen is the driven collection foots ground, happening. So, signature

can collected. month just signatures the is be a it'll going to of So, be it be that -- part

The of is campaign ballot. by be the is to a the having placed on and initiative, second Supreme once thing Court placed appropriately PR capital, around approved it course the

the who's couple ago, in been hat initiative, was a is support support. and by there of threw And very his medical weeks who a the he tweeting lawyer has behind behind the his ring prominent talked --

a look continued building, going being is is thing. active there to positive So, which momentum initiative. be are in certainly it And we does like some

Russell Stanley

That's, helpful. that's very Thanks.

me queue. I'll last get and just back for the one in question So,

there and plans Massachusetts developing the your to on to work there. market the wholesale moving Just

at you're with build to where online? where wondering at of getting talking to trying Just a or you potential advance customers and the base facility be can in customer to respect

Kim Rivers

And very is that extra our some any regularly, We projected but Thanks supply. per not times getting and down online there wholesale parties, us. further to I very respect confident road week Russ. we that with is to lock Massachusetts, have stores multiple with agreements and agreements better ability into to coming is specific have third yet there. entered prior more ourselves visibility we what there can of definitely wanting field wanted calls tell What you We folks demand are in get inbound supply supply specific we have needs than to the four to into to down feel supply our agreements. with


Instructions]Our next [Operator go ahead. question comes Bottomley from Please Matt Canaccord. with

line Your is open.

Matt Bottomley

Congrats Congrats on great results. results. on the morning. the Good great

in you to any pertains color the dry or can Just trends as wondering, provide bud. dry flower if it Kim,

new that you color amounted mix. of XX% product Can it about of back? derivative think said any of we how over flower? changing Maybe that as will from on get many is that products then trying that an customers to at want normalization are You just to and or a the end up? maybe some are basis going where flower Just percentage the once trying give assumption others

Kim Rivers

still Thanks, to Matt. that we percentage is creep for some believe that up. flower And room there

we've respect we I what those And ticket. And still don't we're typically a That a that a of tickets. is, seeing is but flower being the are there not lot anecdotal. can this mixed said, so, tell I tickets internally, flower hit to think with bit believe pure tops you mix. that yet and

ticket it's one, meaning see Although, an the that day maybe units, you you flower three as may in one predominant flower product example. know,

to value milligrams week absolute And week. standpoint in an as dollar over week absolute over an see you from can numbers value, on are, continue the week value oil grow

well. So, as continuing to is that market grow

I don't grow. can but you continuing the that I market see tell breakout specific have to So, segments a you, we for both of

in edibles products how coming And shakes us. online, we're be course, as for the we'll interested forward up that to seeing looking mix mentioned. Of further

Russell Stanley

on anecdotes is in just pens and maybe wide vape respect have as in whether then state with more there pricing of is And hanging the How operators is more there and any products to you open-up bud? groups pricing, or source? dried tinctures

Kim Rivers

are we've to pricing levels had set at competitors Florida. we're meet have slightly above, or our in to price seeing downward yes I'll sector in where Florida, adjust of which movements a new number pricing coming either continue pricing, that in, we whole are not say our pricing, instances So, but in seen really to historically. competitors been There

pricing our competitive. remains it's So,

be penetrate Trulieve, launched also wanted we when create Florida, did so a scale. we with the we remember but replicated brand it to national thesis can And the on that can that

we price looking when we're looking market, the we're product we're so at mature at the So segment, Arizona. pulling price from comparisons Californias, medical

looking first markets proposition of value do we we since with seeing opened these ago price test that the have We're our are our we to store. the which to time, when that we're same proven think competitive withstand I are because want are mature more launched at years to that out prices three

Russell Stanley

then last for me. And

they've that flower Just representation from providing OMMU provide apples five its volume. oranges you confirm, fair I six It is dry then milligram that been what's data weeks, about guys with And better. that to breakdown? wanted or just versus the how happening flower seems the is is you of know good if at they level? data for a to it the if me, like there a sold by to way and but would compare secondly, macro one, the any or that think

Kim Rivers

debate just here you've hit internal big a Trulieve. at on Matt,

the is way it's which into can way is way And products is of in by file opposed statute. mean, or because So, as the active way that that it's reason milligrams, as Florida the flower rest written decent the I to by it data. distance. dispensed was reported the that of that opposed

dispensaries and the is it across sensations accurate the is, from thing. that's in the is is just we and I it mean good, kind it of available is a So or state metric right that think it bad data have pulling it what otherwise, is just I different it it's directly all of

which single that week-over-week a of in some have basis order on there have we metric are it number every on data there associated sharing what on and becomes great convert we lot to we details obviously it but be and that on run still -- on is be assumption anything it so be every assumptions certainly internally, will very So and I to a not do depend have certainly it's can some for blended comfortable and strain volume potency or because based. we competitor would sell primarily -- that from necessarily the of strains I think don't of a are or that with we it that single perspective put relied data made the with but a telling

Russell Stanley


price, the average, was, come were competitor and same something $XX selling, strains in So if point lower obviously, the it's a quality of lower as going summary? you if data to they're or a up gram selling for state's on a

Kim Rivers



Jason Your Zandberg Financial. Please from with [Operator comes Instructions] question go next ahead. PI

open. Your line is

Jason Zandberg

Hi relates have Maybe to everyone. on just I wanted add could to smokable a flower. actually similar which about I -- another question I that. Matt question

the for flower dried Just as on smokable seen average wondering you’ve customer? would abrupt the customers. wondering, younger flower, demographics introduction you that an if that since the is see that well the increase additional come just have are since if in the whether in patients of smokable And a flower? drop agent, hypothesis My

you’re board that's in retail what seeing out, if wondering Just level?

Kim Rivers

Sure, great thanks.

two that take in parts. we’ll so, And

seen age, first slight We’ve average the related decrease. So, age very the to a of customer.

those slight years our on has a XX it’s old, would so in average I So age. decrease been historically age upper still say, XXs, again and

currently also course we products, that out And again, aren’t going once as see and concentrated be in of are that we’ll touched more Florida a we on popular some there’s are were on of available and rules, and number that of which products products innovative waiting west. hydrocarbon to edibles

swings monitor additional into that online. see there So, product to when any those if we’ll need there are and categories come look

leading that date did team and to the patients was, your question up and that. to we flower to an it And to actually with came to respect and really prior on with prior patient respect saw like see marketing second increase in board, we count, coming

XXXX in patients X,XXX average. we historically So, reported on per week

track per between approximately. Now, week you again, approximately can X,XXX the at OMMU. patients it And on we’re

the year, So, there fluctuate and will increase first it certainly from has the X,XXX, half an patients, over some week-to-week, been X,XXX, and X,XXX. it’ll weeks of in be

was, X,XXX it what when it saw week timeframe, week I -- X,XXX one amazing that's can't -- a jump exactly patients. but and in remember But this we from

increased we over were certainly, that in certainly and patient know a So, rates in way our they XXXX. boarding feeling on have we’re business


back to Ricci, to comments. I over questions. of for for Lynn us now it time turn brings That the allotted end closing will

Lynn Ricci

everyone We Have to next you progress our on you good Thank look for day. us updating a again quarter. joining today. forward


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