Miami-based Cansortium is quickly becoming a leading operator in Florida, says Corey Hammill, head of research at Paradigm Capital, who on Tuesday released a client update on the opening of Cansortium’s 11th dispensary in the state.
On June 10, Cansortium announced the opening of a pot dispensary in Melbourne, Florida, a 1,700-square-foot location, which is the only dispensary within a nine-mile radius and serves 85,000 residents within a five-mile radius.
Hammill says the company plans to open five more stores between now and July and aims to have 30 in total by the end of the year. The multi-state operator is also pursuing licenses and expanded operations in Texas, Michigan, Pennsylvania, Puerto Rico, Columbia and Canada.
“TIUM is beginning the execute its plan for aggressive expansion through Florida, with the company’s Melbourne dispensary representing the first of many to be opened in the state during the next few months,” says Hammill.
“The company’s capacity to ramp up its footprint so drastically reflects its best-in-class operating capabilities, positioning it well to take advantage of the fastest-growing medical cannabis market in the U.S. At present, Cansortium and Green Growth Brands each hold one of just 22 licenses issued by the state of Florida, empowering significant revenue opportunities for the multi-state operator in the near term,” he says.
Hammill also notes that as per data from Florida’s Office of Medical Marijuana Use the state recently passed the 300,000 registered patient mark, a sizeable ramp-up from just a year ago where the count was at about 125,000 patients. Hammill says the new milestone should prompt the state to increase the dispensary cap for cannabis companies from the current 35 to 40 locations.
Hammill says Cansortium is currently trading below the average multiple for multi-state operators tracked by Paradigm.
“Cansortium is quickly becoming a leading operator in Florida, with revenue guidance in that state more than supporting the current share price. Investors are gaining exposure to the potentially huge Texas market for free (TIUM owns one of just three licenses in Texas),” he says.