Trulieve Cannabis (TRUL), the largest medical cannabis company in Florida, is expanding its operations in West Virginia. The cannabis company announced Wednesday it has completed the acquisition of Solevo Wellness West Virginia LLC and its three West Virginia dispensary permits.
Trulieve paid C$650,000 for Solevo Wellness. Of this amount, C$150,000 was paid in cash and C$500,000 in Trulieve shares based on the 10-day volume-weighted average price of the stock.
Solevo was granted two permits in Morgantown and one in Parkersburg in January 2021 as part of the application process in West Virginia.
Trulieve CEO Kim Rivers stated, "Completing this transaction broadens our presence in West Virginia. With the addition of Solevo West Virginia, and our recently announced transaction with Mountaineer Holding LLC, Trulieve now has cultivation, production and nine dispensary permits in the state. Trulieve is committed to investing in the communities in which it operates. We will approach West Virginia with the same high level of integrity, focus on diversity, equity, and inclusion, and dedication to a variety of quality products to provide the best access and customer experiences to West Virginia patients."
The transaction is subject to regulatory approval from the state of West Virginia and customary closing conditions. (See Trulieve Cannabis stock analysis on TipRanks)
About a month ago, Needham analyst Matt McGinley assigned a Buy rating on TRUL with a price target of $62.25 (C$75.38). This implies 63% upside potential.
McGinley said during an earnings call that he acknowledges what the higher CapEx spend is doing for Trulieve’s top line.
The rest of the Street is bullish on TRUL with a Strong Buy consensus rating based on 12 Buys. The TRUL average analyst price target of C$84.85 implies 83% upside potential to current levels. Shares have gained approximately 10% year-to-date.
TipRanks’ Smart Score
TRUL scores a “Perfect 10” in TipRanks’ Smart Score rating system, indicating that the stock returns are likely to outperform the overall market.