Ex- Canopy Growth Chief Executive Officer (CEO) Bruce Linton recently spoke up on the US cannabis market and reported that he believes that Former New York Governor Andrew Cuomo served as a blockade for the legalization of recreational cannabis in the state.
After initial allegations surfaced, the former governor attempted to quickly change the narrative by advancing recreational cannabis legislation in NY. Linton believes that continued pushbacks on the legalization of cannabis in the US could have a significant impact on the landscape of the entire industry.
Linton said a potential ripple effect of the continued delay of federal legalization of cannabis in the US would be a change in where leading operators trade. He said he would not be surprised if a large-scale Canadian Licensed Producer (LP) like Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) or Aurora Cannabis Inc. (TSX: ACB) (Nasdaq: ACB) de-listed from the Nasdaq in order to capitalize on the US.
These companies could de-list from the Toronto Stock Exchange (TSX) and start to trade on the Canadian Stock Exchange (CSE). By changing from the TSX to the CSE, companies would have more flexibility to capitalize on the US market.
New York Could Serve as a Catalyst for the Entire Cannabis Sector
During the last quarter, the cannabis sector has been under pressure and we believe the industry is reaching an inflection point. We agree with many of the points that Linton provided on the US market and are bullish on burgeoning medical and recreational markets like Arizona, Illinois, Michigan, and Pennsylvania.
If recently appointed New York Governor Kathy Hochul can follow through on her plan to make the legalization of recreational cannabis in the Big Apple to be a high priority, we expect the development to serve as a major catalyst for the entire US cannabis market and see a spike in interest in US multi-state operators (MSOs).
New York officials estimate that cannabis sales could generate $350 million a year in tax revenue and we believe the state could use it after the COVID pandemic. The state was one of the hardest hit by COVID and we believe it needs new revenue streams to help with the recovery process.
If you are interested in learning more about companies that would benefit from the federal legalization of cannabis in US, please send an email to email@example.com with the subject “US Cannabis Operators” to be added to our distribution list.
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