You can add Nevada to the list of states that have surpassed more than $1 billion of medical and recreational cannabis sales over a one-year period (according to state officials) and we consider this to be a milestone for the US market.
According to the Nevada Cannabis Compliance Board (CCB) and the Nevada Department of Taxation, the state generated $1,003,467,655 of taxable cannabis purchases between July 1, 2020 and June 30, 2021. This represents a significant increase from the $685 million that was reported in the prior year and believe our readers should be aware of this accomplishment.
The vast major of sales were in the county where Las Vegas is located and we are not surprised by this. The country reported almost $800 million of cannabis revenue and we are bullish on the growth prospects that are associated with this region. A decent amount of revenue was generated in Reno and we will monitor how this market continues to perform.
The COVID pandemic put considerable pressure on Nevada’s economy which relies heavily on tourism. We are glad to see how the cannabis industry has bounced back and believe the Las Vegas market will be stronger than ever once cannabis lounges open up.
A few months ago, Nevada Governor Steve Sisolak (democrat) signed legislation to legalize cannabis consumption lounges in the state and we expect this vertical to be a major revenue generator for companies and brands that are levered to the market.
During the last year, the US cannabis sector has been under pressure and several high-growth multi-state operators (MSOs) are trading at attractive valuations when compared to its peers. Two operators that we believe are trading at a discount and that should benefit from the growth of the Nevada market include: Body and Mind Inc. (CSE: BAMM) (OTC: BMMJ) and CLS Holdings USA, Inc. (CSE: CLSH) (OTC: CLSH).
If you are interested in learning more about companies that levered to Nevada’s cannabis market, please send an email to email@example.com with the subject “Nevada Cannabis Companies” to be added to our distribution list.
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