Trulieve Cannabis Corp (TCNNF)

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TRULIEVE (TCNNF) - Why to buy It and put It away

1. Passage of SAFE Banking Act and MORE Act. The passage of the MORE Act will be important as it will lead to expunged criminal records for those associated with Marijuana arrests. Just as important or probably more so for TCNNF is the passage of the SAFE Banking Act. Catalysts:

2) Taxes. Cannabis companies are currently being taxed on gross profits due to IRS code 280E which does not allow deductions. TCNNF is paying taxes on gross profits instead of net income which is limiting profit and cash flow. TCNNF is one of the few profitable Marijuana companies in the world at the moment. Imagine what they'll do with this new found source of income?

3) Capital Access - Credit card companies and federal banks can't do business with cannabis companies. Legalization will allow TCNNF to restructure its balance sheet, acquire loans at much better rates , which will allow expansion to occur much more easily. The cost of doing business for themselves and the customer experience will improve exponentially.

4) Stock Up Listing. Company trades on the highest tier (OTCQX) associated with the Over the Counter Bulletin Board (OTCBB). Federal legalization prohibits TCNNF from trading on the NASDAQ or the NYSE. Once the rules changes (which should occur over the next few months):

5) Up listing (IPO), which is already in the works. Owning the stock now may be similar to owning a stock before it goes public (an IPO). Buy it now before the up listing occurs.

6) Institutions are currently prohibited from purchasing the stock for ETF's and Mutual Funds. There is almost certain to be a frenzy of buying activity from institutions once TCNNF hits the NASDAQ or the NYSE. Buy the stock now, as the advantage of holding the stock now is with retail investors.

7) Robin hood investors or day traders cannot currently purchase this stock. That will change once the up listing occurs. Marijuana stocks are the most commonly volume traded stocks by Robin hood owners but they are only limited to purchasing the weaker Canadian brothers. Avoid the Canadian marijuana companies. Purchase the MSO's (i.e. TCNNF) as they are much better positioned than the Canadian stocks.

8) TCNNF Dominance in Florida. The model they are using in Florida is dominating the market. At present, Florida is only a medicinal state but its primed to become a recreational state within two years. Look at the OMMU weekly reports from the state of Florida which depicts their dominance as well as the increase in patients getting permitted to buy marijuana. Recreational use, combined with an influx of tourism, and riddance of the pandemic will spawn numbers that dwarf what we are seeing today. Florida alone will generate massive revenue and profit.

9) Expansion. Its coming. Massachusetts and Pennsylvania are primed and ready to go. West Virginia is waiting in the wings. Other MSO's have a larger foot print in other states, compared to TCNNF but they had to over leverage their share balances into the hundreds of millions or borrow at exponential rates. TCNNF has used their profits to generate their expansion in Florida and they used a portion of their profits to expand into other states.

10) Which leads to the next bullet point, which is the number of shares outstanding. Last I saw, we were at only 118 million shares on the float. A low share count may work to retail investors advantage, particularly when the company gets up listed to a better exchange. For institutions, Robin hood, and retail investors, the law of supply and demand may weigh heavily in the stock price.

11) Management Team. The best in the business. Kim Rivers has displayed and shown herself to be as competent a CEO in this space as anyone out there. Kim isn't rushing into anything. She's playing her cards as they are dealt to her, and she's playing the game perfectly.

12) Politics. When Georgia forked over their two senatorial elections to the Democrats, the game turned on its head. With Democrats now in control of the House, Senate, and Oval Office, passage of the SAFE and MORE Acts will happen soon. Republicans and Democrats can't ignore the money potential and the number of jobs that will be created with this new industry. In the end, that's what politics are about. Money and jobs. The result of the pandemic, the need for states and the federal government to raise money, and the creation of jobs that have been lost can help get resolved with this new business opportunity.

13) Early Innings. We are all looking at a fabulous opportunity. This is no different than the beginning stages of the repeal of Prohibition in 1933. Its not impossible to envision TCNNF to have the potential to be the next Coca Cola, Amazon, or Walmart of the marijuana industry. No need to day trade this stock. Just buy it and put it away.