Florida-based cannabis company Trulieve Cannabis (Trulieve Cannabis Stock Quote, Chart CSE:TRUL) has announced an exclusive licensing partnership with consumer packaged goods company SLANG Worldwide to introduce Organa Brands’ product portfolio to the Florida medical cannabis market, a move which analyst Robert Fagan of GMP Securities as testament to Trulieve’s ability to maintain its strong market position in the state over time.
Announced on Tuesday, the agreement will benefit Florida’s medical cannabis users, said Trulieve CEO Kim Rivers.
“SLANG operates with the same goals as Trulieve, working to expand patient access and create products that are high-quality, consistent, and reliable,” said Rivers, in a press release. “SLANG’s expansive portfolio ranges from vaporizer cartridges to edibles to concentrates, all products that will provide Florida’s patients with the effective, natural relief they’re seeking in ways that are innovative and fresh.”
Fagan says the partnership will give Trulieve the most diverse product offering in Florida.
“The SLANG partnership is the fifth such brand licensing deal made by TRUL and the most prominent thus far, in our view,” says Fagan in an update to clients on Tuesday. “It complements TRUL’s existing partnerships with Love’s Oven, Sunshine Cannabis, Binske and Bhang, which in totality cover all product formats expected to be available in FL. These partnerships fit well into TRUL’s brand diversification strategy where the company aims to have a wide brand assortment to remain relevant as consumer tastes evolve and mature.”
“With TRUL’s five brand partnerships, the company has achieved the most diverse brand and product offering in FL, with its closest competitor having only two brand partnerships. This in turn should help TRUL support its market share as multiple brand offerings should provide a differentiator in a market where competitive pressures are expected to increase as more operators enter the market,” he says.
The analyst is maintaining his “Buy” recommendation and C$26.00 target price for TRUL, which represents a projected return of 59.2 per cent at the time of publication.