November 3 is a big day for the U.S. cannabis industry. Five U.S. states will vote on measures to legalize medical or recreational cannabis.
Leading cannabis market research firm New Frontier Data’s new research report projects that the vote will have a big impact on U.S. cannabis sales.
“The 2020 election could be one of the most consequential and historical events to change the landscape of the legal U.S. cannabis industry,” said New Frontier Data Founder & CEO Giadha A. DeCarcer. “With $9 billion in new revenue from 2022-2025, should all five states ballot measures pass, New Frontier Data estimates that revenues from all legal U.S. markets will reach $35.1B in 2025.”
From the group of five U.S. states getting ready to vote on legalization, none is more important than New Jersey for two reasons.
2 Reasons That New Jersey’s Vote Will Rock the Cannabis Market
#1 – New Jersey Could Be a $1 Billion Dollar Cannabis Market
New Jersey has a population close to nine million, making it the 11th most populated state in the United States. The high population rank is creating a big sales opportunity for the cannabis industry. New Frontier Data predicts that New Jersey’s annual cannabis sales could top $1 billion in 2023 and break $1.2 billion by 2025.
#2 – New Jersey Could Unlock the East Coast Cannabis Market
If New Jersey legalizes, analysts predict that it could lead to a domino effect in the Northeast corridor where states are desperate for new tax revenue to repair financial damage from COVID-19. Here are some more details from Bloomberg.
It could go like this, according to investors and cannabis executives: If New Jersey passes an initiative to legalize recreational use this November, then Connecticut, New York, Pennsylvania and Rhode Island could follow shortly after. That’s because states have an added incentive amid the pandemic to prevent cannabis users from crossing state lines and potentially spreading Covid-19.
Recreational use in New Jersey “would serve as more than enough of a catalyst” for the domino effect, Cowen & Co. cannabis analyst Vivien Azer said in a research note last week. Nearby states could legalize over a period of around two years, she said.
As it stands, New Jersey’s medical cannabis market is still in its early stages and underdeveloped. Just six companies have been granted a license to sell medical cannabis – with each license good to open three dispensaries.
These companies have opened just 12 medical cannabis dispensaries to date with plans to open four more by the end of the year. Moving into 2021, it’s likely the state will hit the 18 dispensary cap. There are another 24 permits that are currently on hold because of a lawsuit.
The shortage of cannabis dispensaries, cultivation, and processing centers in New Jersey is creating a big opportunity. Companies operating in the state with medical cannabis permits would likely be the first to be granted permits to sell recreational cannabis. These permit holders could also build new cultivation and processing facilities.
Today I am going to reveal three of the six companies that have been granted cannabis permits in New Jersey.
3 Cannabis Stocks Ready to Cash in on New Jersey
Curaleaf Holdings (CSE: CURA, OTC:CURLF)
Curaleaf is one of the largest cannabis companies in the country, operating 92 dispensaries in 23 states. One of those states in New Jersey, where Curaleaf currently operates two medical dispensaries. This early presence in New Jersey puts Curaleaf in a position to win permits to sell recreational cannabis if the state vote to legalize in November.
Shares of Curaleaf saw a big rebound this summer before this most recent pullback. Take a look below.
Terrascend (CSE: TSE, OTC: TRSSF)
This Canadian-based cannabis company has an early presence in New Jersey and a market cap of $250 million. Terrascend recently finished building a 37,000 square foot greenhouse in Boonton Township, NJ. The company also plans to open a medical cannabis dispensary in the fourth quarter.
TRSSF also rebounded big off the 52-week low from March. Shares are currently taking a breather and consolidating just below the 2020 high. Take a look below.
Acreage Holdings (CSE: ACRG, OTC: ACRGF)
Acreage is headquartered in New York, New York, and has a market cap of $275 million. Back in June, Acreage completed a deal to acquire a license in New Jersey. This license granted Acreage the ability to open three dispensaries and a cultivation and processing facility.
Acreage has been weak on the chart in 2020. Shares have been consolidating into a tight range just below the 52-week low.
The New Jersey Cannabis Opportunity
New Jersey is set to vote on legalizing cannabis on November 3. If the vote is yes, New Jersey cannabis sales should skyrocket in the next few years.
These three companies are all early leaders in New Jersey and in position to capitalize on recreational cannabis sales.
About the Author & Cannabis Stock Trades
Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.
Mr. Vodicka brings his expertise and guidance to the members of Cannabis Stock Trades.
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