As Tropical Storm Helene strengthens and approaches Florida's Gulf Coast, Trulieve Cannabis Corporation (TCNNF), one of the largest multi-state operators (MSOs) in the U.S. cannabis industry, is preparing for potential disruptions. Investors have expressed concern about the storm's potential impact on Trulieve's business, especially given Trulieve's extensive presence in Florida. But Trulieve CEO Kim Rivers said the company is fully prepared for whatever comes ashore.
Responding to user @WolfOfWeedST on Twitter, Rivers outlined the company's preparedness plans and noted that its facilities are built to withstand the storm. “We are fully prepared. This is not our first storm. All of our buildings are wind resistant and have been through storms before,” Rivers wrote, addressing concerns about infrastructure vulnerability as Helene strengthens into a potentially catastrophic disaster.
We are well prepared. This is not our first time experiencing a storm. All of our buildings are wind-resistant and have been through storms before. The biggest threat is a power outage, but we have power lines coming in from the southeast so we should be OK. Either way, generators are on site, we are storm prepared and the team is…
— Kim Rivers (@rivers_kim) September 25, 2024
Storm on the horizon
Helen, which is expected to make landfall as a major hurricane, poses a major threat to Florida's west coast. The National Hurricane Center (NHC) has already issued warnings of a storm surge of up to 15 feet and wind speeds expected to exceed 100 mph as the storm intensifies. Counties along the Florida coast have begun issuing evacuation orders, and power outages are expected.
Trulieve's headquarters, operations and pharmacies are concentrated in Florida, making it especially vulnerable to disruptions. But Rivers assured officials that the company's hurricane preparedness plans have been activated. While she acknowledged that the biggest challenge may be power outages, she remained optimistic: “The biggest threat is power outages, but we have power lines coming in from the southeast so we should be OK. In any case, we have generators on site, we're prepared for the storm and our teams are ready to go.”
Impact on the cannabis supply chain
Trulieve also wholesales cannabis products to other businesses, so any disruptions at its facilities could have ripples throughout the supply chain.
Cannabis investors are watching closely, with some worried about a potential setback to the industry's recovery after a tough few years. @WolfOfWeedST noted that “all it takes for Florida's MSOs is Hurricane Helen to kill A3 (Amendment 3, an initiative to legalize adult-use cannabis in the state) and this movement,” noting that several companies rely on Trulieve's production and wholesale operations.
Helen's path will be a major focus in the coming days as the cannabis industry closely monitors it. While the physical infrastructure is in place, the real test will come after the storm. The focus will then shift to how quickly businesses can resume operations and whether the supply chain remains intact.
We hope you all stay safe and healthy.
Market news and data provided by Benzinga API
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
