♬ I got my peaches out in Georgia, I get my weed from New York……. ♬
Oh? That’s not how it goes? Welp!
Seriously, that’s how it should go considering New York recently became the 15th American state to legalize the recreational use of marijuana for adults, following closely behind the recent legalization in its neighboring state of New Jersey.
Errmm sorry for those 18-year-olds in New York that heard this and became overly excited. Unfortunately, although you may be old enough to drive, you aren’t quite old enough for recreational use of marijuana, but don’t worry, it’s just for another 3 years.
Okay, so to the meat of the matter…
The sales from this newly created market in New York is projected to reach $7 billion when the market is fully established, which might be as soon as 2022. Out of all the organizations that constitute the cannabis industry, MSOs are set to benefit the most from the New York legislation change. Now, your next question may be “What are MSOs?” Well, MSO stands for “Multi-State Operator.” MSOs are cannabis companies that have operations in multiple states. You probably know that Cannabis is illegal on a federal level in the United States, hence, it makes it impossible for cannabis companies to operate as multinational corporations and that’s why they run as MSOs. Several MSOs are going to be positively affected by the New York legislation, however, let’s highlight three that are likely to benefit the most.
- Curaleaf (CURLF): This is currently the world’s largest MSO and will benefit quite significantly from the cannabis legislation. They already exhibit a strong presence in the New York medical marijuana sphere (which has been legal since 2014). This would aid with quicker integration into the recreational marijuana sphere.
- Cresco Labs (CRESCO): Cresco Labs is one of the leading MSOs in the United States. However, this company is mainly focused on the wholesale market. Over 50% of the company’s revenue is derived from wholesale but its retail stores located in New York will also contribute substantially to its revenue.
- Columbia Care (CCHHF): This is an MSO that is not well known in the market but generated revenue of over $200 million in 2020 and is projected to double their earnings in 2021. It is positioned to experience the greatest upside in its four retail locations across the state.
The cannabis industry is poised to make great strides and experience significant growth in
coming years. However, it is at a nascent stage because it still considered a controlled substance
in most parts of the world. Although it is an industry that shows significant potential,
nevertheless it requires investors to tread with caution.
High… Like ALOHAAA
