Trulieve plans to close marijuana retail in California

Trulieve Cannabis Corp. TRUL TCNNF announced Thursday that it plans to close its marijuana retail operation in Grover Beach, California, as part of its initiative to preserve cash and enhance financial performance.

Trulieve has taken proactive steps to rationalize cash and marginal dilutive assets and streamline operations while reallocating resources to attractive markets with long-term growth potential, as it has done since mid-2022. The measures to date include closing select California retail assets, leaving the Nevada wholesale market, and idling production capacity to match consumer demand across multiple markets.

The move follows the exit of select California retail assets in Palm Springs and Venice last year.

By the end of June, the company said it would wind down its operations in Massachusetts, including shutting down retail locations in Framingham, Northampton and Worcester. By the end of the year 2023, Trulieve expects to discontinue operations in the Bay State.

These difficult but necessary measures are part of ongoing efforts to bolster business resilience and our commitment to cash preservation as we continue to focus on our business strategy of going deep in our core markets and jettisoning non-contributive assets, Kim Rivers, the company's CEO, said. We remain confident in our strategic position and the long-term prospects for the industry. Trulieve shares were down 1.64%, or $4.2 per share, at the time of writing on Thursday.

Kim Rivers, Trulieve's president, on 'Optimizing Portfolio And Efficiencies Across A Combined Platform' Following Q1 Earnings Reports, said: 'Evaluating Portfolio and Efficiencies Across A Combined Platform'.