What’s the Difference Between LPs and MSOs?
The difference between LPs and MSOs lies in their geographical focus and regulatory environment:
- LPs are cannabis companies based in Canada.
- They are licensed by Health Canada to produce and sell medical cannabis and operate in a federally legal market, which allows them to access banking services and institutional investors but they are limited to the Canadian market and face strict regulations.
- MSOs are cannabis companies based in the United States.
- They operate in multiple states where cannabis is legal, either for medical or recreational use.
- MSOs face a more fragmented regulatory environment, as cannabis laws vary from state to state. They do not have access to federal banking services and institutional investors due to federal prohibition and, as such, have much to gain from country-level reform in the U.S., and are eager to see more welcoming federal laws that will allow their businesses to develop further.
The 6 largest vertically integrated cannabis multi-state operators (MSOs) in the U.S., ranked by market capitalization, are:
- Green Thumb Industries (GTBIF)
- Green Thumb Industries Inc. manufactures, distributes, markets, and sells cannabis products for medical and adult-use in the United States. It has 104 retail location in the nation of which 22 are in Florida.
- Trulieve Cannabis (TCNNF)
- Trulieve Cannabis cultivates, processes, and manufactures cannabis products and distributes its products to its dispensaries, as well as through home delivery.
- Curaleaf Holdings (CURLF)
- Curaleaf Holdings is the largest cannabis operator in the U.S. by revenue and dispensary count 151 retail locations across 17 states of which its largest concentration is in Florida, where it runs 66 dispensaries.
- Cresco Labs (CRLBF)
- The company currently runs over 60 dispensaries nationwide. It also maintains one of the largest branded product portfolios in the cannabis space with the number one market share in multiple states.
- Verano Holdings (VRNOF)
- Verano operates in 13 states with 155 retail outlets nationwide of which 81 are in Florida.
- TerrAscend (TSNDF)
- The company manufactures vaporizables, concentrates, topicals, flowers, tinctures, and edibles and serves medical patients and adult-use consumers in North America through its 38 dispensaries in 6 states of which the majority – 20 – are located in Michigan.
Glass House Brands (GLASF); While Glass House Brands Inc. is a vertically integrated cannabis company it only operates in California and, as such is not a multi-state operator based in California.
The 6 largest vertically integrated cannabis licensed producers (LPs) in Canada, ranked by market capitalization, are:
- Cronos Group (CRON)
- Cronos Group Inc., a cannabinoid company, engages in the cultivation, production, distribution, and marketing of cannabis products in Canada, Israel, and internationally.
- Tilray Brands (TLRY)
- Tilray remains a unique play among Canadian cannabis stock. Its U.S. strategy hinges on long-term positioning rather than short-term dispensary count as it waits for U.S. federal legalization before deeper cannabis integration. In the meantime, it has expanded its presence through partnerships and acquisitions in the craft beer and wellness industries with distribution in multiple states.
- Aurora Cannabis (ACB)
- Aurora is building an 800,000 square-foot, mostly automated, facility that, when complete, is anticipated to have the lowest growing costs and highest margins in the entire industry. Aurora will be ready to meet the high demands that recreational legalization will be and ready to reap the profits as well.
- Canopy Growth (CGC)
- Canopy Growth has the highest market share in the Canadian medical marijuana market and, while Canopy does not own or operate U.S. dispensaries, it has set up structures to enter once legal barriers fall and strategic stakes in several American cannabis firms, preparing for a post-legalization landscape. It operates internationally with strong medical and recreational cannabis divisions and Constellation Brands (STZ) has a 9.9% stake in the company for collaboration of marijuana infused beverages.
- Organigram Global (OGI)
- Organigram, Canada’s #1 cannabis company by market share, engages in the production and sale of cannabis and cannabis-derived products in Canada and, through its recent acquisition of Collective Project Limited, participates in the U.S. and Canadian cannabinoid beverages markets.
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