“If New Jersey voters approve adult-use marijuana in November,” they wrote, “it could in short order create one of the nation’s largest legal pot markets and potentially unleash a five-state Northeast bloc worth over $7 billion a year in sales.” They further estimate total U.S. We believe this clarity will be well-received by the market, which should begin to price in the specter of expedited growth and the probability of an electoral swing.Īs the potential regulatory arbitrages are fluid at the federal level-including the all-important Senate race, which has been the bottleneck for cannabis bulls, and the possibility of banking reform, which may be included in the Bank Secrecy Act-Anti-Money Laundering (BSA/AML) bill that is expected to pass prior to the election-we view them as upside call options to our baseline bull thesis, which is predicated on continued legalization at the state level with a particular focus on the East Coast.īloomberg Intelligence recently published an article, “New Jersey Legalization May Ignite Northeast Buzz,” which echoed many of our core assumptions. Importantly, it would leave the issue of legalization to individual states, many of which have infrastructures that we are heavily invested in. In early July, Joe Biden’s campaign released their cannabis policy blueprint, which includes plans to reschedule adult use, de-schedule medical and decriminalize both. cannabis market how more and more States are turning to cannabis for tax revenues and job growth the implications of the upcoming election the potential for banking reform and the December UN meeting. In our last column, we walked through a multitude of dynamics, including how COVID-19 and the social justice movement crystallized the need for a legal and regulated U.S. It remains our view that the back-half of this year will be catalyst-rich and while many variables remain, the stage is seemingly set. The Bloomberg Global Cannabis Index lost 9.5% in June and arrived at the 2020 midpoint down 29% YTD. Boris Jordan - Chairman, Curaleaf Holdings, Inc.Īfter bouncing off all-time lows in March, global cannabis stocks paused to reflect as the traditionally treacherous summer season commenced. Connecticut, New York, New Jersey and Pennsylvania will be recreational." So, I think this time next year, the large part of the East Coast will be recreational.
“ We think if New York and New Jersey go, then obviously Connecticut and Pennsylvania will follow suit, very quickly.
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