The New Jersey Adult-Use Cannabis Market Is All Systems Go

New Jersey’s recreational cannabis market has recently become a major topic of discussion and we think the hype was justified after the state sold almost $2 million worth of recreational cannabis products on the first day (according to numbers reported by the state Cannabis Regulatory Commission).

We expect New Jersey’s recreational cannabis market to continue to generate headlines as new dispensaries open in the state. On the first day of sales, more than 12,000 customers visited 12 dispensaries and we expect the number of stores to increase by the end of the year.

Some analysts have forecasted more than $2 billion of recreational sales per year in New Jersey and we expect companies with leverage to the state to record strong sales growth as a result. For a market with this amount of potential, we would not be surprised to see an uptick in the amount of acquisitions of licensed New Jersey cannabis operators in the near future.

During the last year, there has been a significant increase in the amount of cannabis sales in the US and we attribute this to an increase in the number of states that allow for the sale of recreational cannabis.

Prior to the opening of New Jersey’s recreational cannabis market, New Mexico started to allow for the sale of recreational cannabis. On the first day, the state reported more than $1.9 million of recreational cannabis sales and we are bullish on the legalization trend we are seeing in states across the US.

Although the US has been the fastest growing cannabis market in the world, the sector has been under considerable pressure. We attribute some of the weakness to the performance of the Canadian cannabis market and consider the sector to be oversold.

We are of the opinion that the most significant potential catalyst for the US cannabis industry is the passage of pro-cannabis legislation. We hope to see cannabis banking legislation passed before the end of the year and continue to have a long-term bullish outlook on the sector.

We consider the US to be the most attractive cannabis market in the world and our readers can learn more about the companies who would benefit from regulation reform by emailing support@technical420.com with the subject “US Cannabis Industry” to be added to our distribution list.

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