With the November election being less than two months away, many investors are trying to determine which states will pass legislation that is pro-cannabis.
The opening of new markets has been one of the most significant growth drivers in the US. Another major growth driver is the transition from being a medical only market to a recreational market. If you look at the performance of states like Illinois and Michigan, you will notice that there has been an incremental increase in the amount of cannabis that is being sold and we expect to see additional states go this route in November.
We expect to see several states pass cannabis legislation in the election and this should prove to be a substantial catalyst for growth. Today, we want to highlight some of the states that plan to vote on cannabis legislation and believe that our readers need to be aware of this trend.
Arizona: Will Recreational Cannabis Legislation Pass this Time?
In 2016, Arizona was not able to pass recreational cannabis legislation and we expect to see a different outcome in the 2020 election. There are several high-profile multi-state operators (MSOs) that have leverage to the Arizona medical cannabis market and we expect to see these companies benefit from a positive outcome in November.
In Arizona, one of the main differences between the 2016 election and the 2020 election is related to the companies that are against legal cannabis. Insys Therapeutics previously made large donations to fight cannabis legislation but that will not be the case this year. Insys has to pay a massive fine due to the use of illegal marketing practices and the biotech firm is pretty much non-existent as of today.
New Jersey: Voting on Recreational Cannabis in the Election
New Jersey is one of the most significant markets to be voting on recreational cannabis in the November election. We believe that the passing of recreational cannabis legislation in New Jersey would be a major growth catalyst for the US cannabis sector.
A positive outcome for New Jersey should accelerate the legalization process in New York and we are bullish on the growth prospects that are associated with these markets. The large population and the small size of the state make New Jersey an attractive long-term opportunity.
South Dakota: Trying to Pass Medical and Recreational Cannabis Legislation
South Dakota is trying to accomplish something that no state has been able to; the passing of both medical and recreational cannabis legislation in the November election. According to Marijuana Business Daily, it is proving challenging to predict the outcome in South Dakota as there have been no independent polls on the support for cannabis.
Although South Dakota is a small market, the state is trying to accomplish something substantial. There are a limited number of companies focused on the opportunity and we will monitor how the legislation is supported by voters in November.