Efforts to get marijuana legalized seem to be paying off lately. After more than two years of the approval to legally sell, Massachusetts created history by becoming the first state on the U.S. east coast to sell weed legally in brick-and-mortar stores. Further, the U.S. FDA had also approved marijuana-based medicines earlier this year.
Interestingly, a number of marijuana companies have gone public in the country this year. With both Canada and the United States becoming increasingly weed-liberal, a bump in weed stocks is largely expected.
Massachusetts Becomes First in East Coast to Sell Pot Legally
Voters in Northampton, MA had agreed back in 2016 to legalize recreational marijuana for adults in the state. More than two years after the vote, people witnessed the opening of two stores in Leicester and Northampton. Notably, Massachusetts became the first state on the east coast of the United States to sell recreational marijuana legally.
The two commercial shops sell strains of the hemp plant which can be smoked, as well as pre-rolled joints and in edible form such as brownies and chocolate bars. Marijuana is already sold in six states on the west coast. The opening up of two new stores in the east bodes well for the industry as whole in the country. For the record, Canada legalized and started selling pot in October.
VIDEO Will There be New Stock Listings?
With weed sales becoming legal in both Canada and parts of the United States, experts are of the view that the industry would generate as much as $5 billion in annual revenues as time passes. Further, the U.S. Food and Drug Administration (FDA) had approved the first cannabis-based drug in June. Such developments point toward the fact that the space is going to rake in heavy gains in the days to come.
Given such circumstances, it wouldn’t be wrong to say that an increasing number of marijuana companies would list themselves on the bourses sooner than later. As a matter of fact, approximately half-a-dozen weed companies have been listed this year.
OrganiGram Holdings is widely expected to be one of the few companies to go public soon. It has a market cap of about $600 million and has announced plans to ramp up production in New Brunswick in about 18 months.
Next on the list might be Auxly Cannabis Group, which already trades in OTC (over-the-counter) exchanges for less than $1 a share. The company has a market cap of about $500 million and aims to venture into the downstream, midstream and upstream regions of the cannabis business. Such conditions make it an ideal IPO candidate.
The current players in the marijuana industry like Cronos Group (
CRON - Free Report) , Tilray ( TLRY - Free Report) , Innovative Industrial Properties, Inc. ( IIPR - Free Report) and Canopy Growth ( CGC - Free Report) have been consistently performing well. The average year-to-date (YTD) returns from Cronos, Tilray, Innovative Industrial Properties and Canopy are 11.9%, 55.8%, 42.4% and 316.3%, respectively. To Conclude
Increasing tolerance and gradual legalization of marijuana has been an increasing trend across America. Such a development has more to do with growing awareness of its medicinal values. Establishment of stores, which sell recreational weed in the east coast, would go a long way in establishing a firm footing for the space.
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