The MedMen-branded dispensaries are particularly appealing given MedMen’s prominence within the industry. As the behind-the-scenes owner of two high-profile dispensaries, the company provides investors with great exposure to the growing brand and two of California’s most popular recreational dispensaries. Based on California’s reported tax revenues, and MedMen’s recent unaudited revenue numbers, MedMen’s stores are outperforming the average dispensary by about 3X revenue.
MedMen figures its stores are, on average, higher grossing per square foot than Apple or Tiffany & Co. stores.
The company is also in the process of acquiring Mellow Extracts and Castroville in California, and owns equity in Fine Detail Greenway, Cascadia Gardens, and Mainstem in Washington State’s market. These new subsidiaries and investments could add millions of dollars in additional revenue, while helping build out a wider distribution footprint in both California and other emerging cannabis markets throughout the country.
Strong Growth, Compelling Value
Captor Capital expects its revenue to grow from just over $8 million in Q1’18 to about $15 million by Q2’19, while EBITDA is projected to reach nearly $4 million by Q2’19, according to its investor presentation. These figures would make it one of the largest retail dispensary networks in the entire state of California, and one of the few cannabis companies that’s actually executing on plans and moving forward with commercialization within the state.
Despite its strong performance, the little publicized company trades at a fraction of other publicly-traded companies operating in the cannabis space, based on its enterprise value-to-LTM sales, which might be due to the low profile the company keeps. Many Canadian licensed producers trade at multiples greater than 100x, while Captor Capital trades at a valuation of less than 10x EV-to-LTM Sales, making it a potentially undervalued opportunity for investors interested in the cannabis space.
Investors have an opportunity to benefit from the best of both worlds: A top-performing company within California’s burgeoning cannabis market and a potentially undervalued stock within the larger cannabis industry.
Looking Ahead
Captor Capital Corp. (CSE: CPTR) has built an established network of retail dispensaries across California, including MedMen-branded assets in Santa Ana and West Hollywood. With plans to make more acquisitions in the near future, both in California and in other key markets, and significant anticipated revenue growth, there are several potential catalysts on the horizon for the company.
Stay tuned as we follow this company with good growth potential.
Disclaimer
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://www.cannabisfn.com/legal-disclaimer/
FULL DISCLOSURE: Captor Capital Corp. is a paid client of Stockhouse Publishing.