Lots Of Potential
The opportunity here is that iAnthus is opening up dispensaries in new markets of Massachusetts, New York and New Jersey. In addition, the company expects to double the dispensaries in the key Florida market by next year after recently opening 5 stores alone in August.
The CBD For Life brand recently expanded a distribution deal with Dillard’s to 265 department stores in 29 states. The CBD brand saw sales surge in Q2 to $1.2 million, up from only $0.7 million in Q1. The addition of iAnthus as an owner of the brand has seen immediate benefits.
The relatively small U.S. cannabis MSO already has annualized revenues of $100 million with analyst targets reaching over $300 million in 2020. The company is projected to nearly double quarterly revenues to ~$47 million by Q4. Some of the much better-known Canadian cannabis companies aren’t any bigger than the relatively unknown iAnthus.
The stock only has a market cap of $625 million now based on a fully diluted share count of 250 million shares. A big part of the catalysts for small U.S. MSOs are potential buyout targets on industry consolidation or eventual listing on major U.S. stock exchanges along with federal government approval of cannabis. Not to mention, additional revenue opportunities will open up when existing medical marijuana markets open up the much larger recreational cannabis opportunity. Several companies are already seeing the benefit of recreational cannabis approval in Illinois for January 1.