New York Governor Andrew Cuomo just revealed that the empire state is close to legalizing recreational cannabis. Analysts were expecting New York to go legal in 2021 – but after Cuomo’s revelations, it looks like it’s going to happen sooner than expected.
Here are some more details from Marijuana Moment.
Marijuana reform advocates are seeing a number of positive signals in the push to legalize marijuana in New York—with the governor saying a deal is “very close” and a new resolution from the Senate saying that a legalization bill “shall be passed outside of the budget process.”
Cuomo said on Monday that “passing marijuana reform and legalizing recreational marijuana” remains a priority and that he spent the weekend speaking with Assembly Majority Leader Crystal Peoples-Stokes (D), sponsor of the MRTA, “working through” the legislation. He said they are “very close on marijuana.”
New York potentially going legal is important for two reasons.
#1 – New York Would Be One of the Largest Cannabis Markets in the World
New York is expected to quickly grow into one of the largest cannabis markets in the world. In a recent report, authors Parrott and Mattingly predict that annual cannabis sales could come close to $4 billion by the end of the decade.
Here is some more data from the report:
- Annual retail sales of adult-use marijuana are projected to rise from $566 million in fiscal year 2023 – when legal sales would likely first be authorized if approved this year – to $2.6 billion in 2027 and could reach $3.9 billion by 2032.
- Legal recreational marijuana under Cuomo’s proposal may bring in as much as $159 million in state excise and sales tax revenue by 2023, climbing up to $765 million in 2027 as current users are drawn towards the legal retail market.
- Every $1 billion in recreational cannabis would create an estimated 19,400 jobs in cultivation.
- Adult-use marijuana sales will add an estimated $6 billion in economic output in New York by fiscal year 2027.
#2 – New York Would Trigger More Legalization in the Northeast U.S.
New York is the cultural and financial nucleus of the Northeast U.S. Its population of 19 million ranks fourth in the U.S. If New York goes legal, it will encourage surrounding states to follow suit, including Pennsylvania, Virginia, and Connecticut.
Consequently, New York would have a big impact on the entire U.S. cannabis industry, which creates another great investment opportunity.
I see an early leader in New York that could potentially reward investors looking to make a play on NY’s recreational market.
This company is:
- One of the largest cannabis companies in the U.S.
- Operates in 23 states, with a focus on the West Coast and East Coast.
- An early industry leader in New York.
$10 Billion Juggernaut is Looking to Capture New York
Curaleaf Holdings (CSE: CURL, OTC: CURLF) is a U.S. company with a market cap of $10 billion. Curaleaf operates in 23 states, owns 101 local dispensaries, 22 cultivation centers, 30 processing sites, and has a patient list of more than 350,000.
Curaleaf is a broad play on the U.S. cannabis industry, but the company has a strong focus on the Northeast, with 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.
The early presence in New York’s nascent medical cannabis industry provides an ideal foundation for Curaleaf to expand if New York legalizes recreational cannabis.
Medical cannabis dispensary owners are usually the first to receive permits to sell recreational cannabis. I see a high probability of this happening in New York and that would place Curaleaf in an ideal position to capture New York’s recreational market.
Curaleaf Shares Just Hit a New 52-Week High
Curaleaf shares have been on fire for the last year up more than 400% from the COVID low from March of 2020.
Looking forward, Curaleaf is in a position to benefit from 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 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.
*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.