New York just dropped some unexpected great news on the cannabis industry this week.
If the top cannabis advisor to New York Governor Andrew Cuomo is correct, New York will legalize recreational cannabis in April.
Here are some more details from marijuanamoment.com.
The top marijuana advisor to New York Gov. Andrew Cuomo (D) says cannabis legalization legislation will again be introduced through the state budget in January, with the goal being to enact the reform by April.
During an interview with Canopy Growth Corp.’s David Culver on the company’s recently launched video series, “Under The Canopy,” Assistant Counsel Axel Bernabe talked about how efforts to legalize marijuana in surrounding states underscore the need for reform in New York. And he said the legislation the governor will be introducing will serve as a “model” for other states, prioritizing social equity and economic development.
New York expected to legalize recreational cannabis in 2020. However, COVID-19 got in the way. The legislative session closed early and legislators didn’t have time to work on legalization.
Fast forward to this week – it was revealed that legislators are eager to get back to work on legalizing cannabis. It shouldn’t come as a surprise. States are desperate for more taxes after being ravished by COVID.
If New York goes legal, it would be a major catalyst for the broader U.S. cannabis industry.
New York Would Be One of the Largest Cannabis Markets in the World
Leading cannabis market research firm Grandview Research predicts that New York will grow into the second-largest cannabis market in the U.S.
The New York cannabis market size is expected to reach USD 7.07 billion by 2025, according to a new report by Grand View Research, Inc., exhibiting a CAGR of 14.7% over the forecast period. Cannabis sales are increasing due to its medical benefits, especially in the treatment of ailments such as chronic pain, mental disorders, and cancer. The imminent legalization of recreational marijuana in New York is expected to drive growth over the next few years.
New York Would Trigger More Legalization in the Northeast U.S.
New York is a huge cultural and financial influence in the Northeastern U.S. Its population of 19 million ranks fourth in the U.S. It’s home to New York City and Manhattan – the financial capital of the world. If New York goes legal, it will encourage surrounding states to follow suit.
As you can see, New York would have a big impact on the U.S. cannabis industry. Today I’ll reveal a $5 billion industry leader in a position to capitalize on New York’s latest bid to go legal.
- One of the largest cannabis companies in the U.S.
- Recently valued at $5 billion.
- Operates in 23 states, with a focus on the West Coast and East Coast.
A $5 Billion Industry leader is Ready to Capitalize on New York
Curaleaf Holdings (CSE: CURL, OTC: CURLF) is one of the largest cannabis companies in the U.S. with a market cap of $5 billion. Curaleaf is a direct play on New York and the Northeast cannabis market.
The company operates in 23 states, owns 93 dispensaries, 22 cultivation centers, 30 processing sites, and has a patient list of more than 350,000.
Curaleaf has a strong focus on the Northeast, including medical dispensaries in New Jersey and Pennsylvania and recreational dispensaries in Massachusetts.
Within the region, Curaleaf has a strong and growing presence in New York.
- Curaleaf already operates four medical dispensaries in New York.
- In early September, Curaleaf announced the launching of its medical cannabis brand called Select into New York.
This early presence in New York’s nascent medical cannabis industry provides an ideal foundation for Curaleaf to expand if New York legalizes recreational cannabis.
Curaleaf Shares Just Hit a New 52-Week High
Curaleaf’s share price has been on a wild ride for the last two years. Shares fell sharply in 2019 and early 2020 along with the broader cannabis sector.
However, Curaleaf has seen a huge rebound from the 52-week low in March, jumping almost 300% in six months.
Take a look at the big rebound in the two-year chart below.
Looking forward, Curaleaf is in position to benefit from more legalization in the Northeast and New York and that should provide more support for shares.
The Big Picture on New York and Curaleaf
It was just revealed that New York is looking to go legal sooner than expected. This is good news for the U.S. cannabis industry.
New York would likely grow into one of the largest cannabis markets in the world and influence other nearby states to go legal as well.
Curaleaf is in a position to capitalize. It’s one of the largest cannabis companies in the U.S. with a strong and growing presence in the Northeast.
Is it the right time to enter Curaleaf? I’ll share a full analysis with my CST members when the time is right! Not a member? Join us now with a 2-week free trial.
Author Michael Vodicka owns shares of Curaleaf Holdings (CURLF).
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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