Is North Carolina Going to Jump on the Legal Cannabis Bandwagon?

2022 has already proven to be a period of strong growth for the United States (US) cannabis industry and we believe the opening of new medical and recreational markets has been the most significant catalyst for it.

When analyzing the US cannabis industry, we believe the most significant developments are related to legalization of some form of cannabis in highly conservative states. This trend leads us to believe that the US cannabis industry is reaching an inflection point and will monitor how the sector continues to advance.

Earlier this week, comprehensive cannabis legislation was introduced in North Carolina’s Senate and we find this to be significant. The legislation would allow for the possession of a small amount of cannabis for people over the age of 2021 and we consider this to be a step in the right direction.

The legislation was submitted by Senator Toby Fitch (Democrat) and is more in-depth than the legislation that was introduced in April 2021 which ended up being shelved for the 2021 session.

Although we are favorable on the legislation that was submitted by Senator Fitch, we expect the bill to face resistance from the Republican party. Republican leadership in North Carolina has historically opposed any cannabis legislation and we will monitor how far the bill makes it through the state government.

North Carolina is one of the few states to not jump on the medical cannabis bandwagon and is one of six states where all uses of cannabis are illegal. The other states are Idaho, Kansas, Nebraska, South Carolina and Wyoming, and we do not find this to be significant due to the population of these markets.

Currently, the vast majority of the US population lives in states where cannabis is legal (medical and recreational) and we are bullish on the amount of revenue that is being generated by the industry. We believe it is only a matter of time until the six remaining states jump on the cannabis bandwagon and will monitor how the industry continues to evolve.

We believe the US cannabis industry is the most attractive long-term market and consider the sector to be undervalued after a significant pullback. If you are interested in learning more about the companies that are capitalizing on the US cannabis market, please send an email to support@technical420.com with the subject “US Cannabis” to be added to our distribution list.