Deals
U.S. Gains Ground on Struggling Canada in Race for Pot Revenue
- U.S.-focused cannabis firms are majority of top 10 by revenue
- Canadian margins likely to erode as new supply comes online
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Planet 13 Holdings Inc. generated more revenue from its one flagship store in Las Vegas last month than Cronos Group Inc. did across Canada in the fourth quarter, yet Cronos’s market value is about 21 times larger than Planet 13’s.
The valuation gap is just one dramatic example of the persistent disconnect between Canadian and U.S. cannabis stocks, and a reminder of the potential size of the American pot market as legalization spreads.