Cannabis investors looking for the next big thing need to keep a close eye on New York.
New York Governor, Andrew Cuomo, has made legalizing recreational cannabis one of his top priorities in 2020. Here are some more details from MJbizdaily.com.
New York Gov. Andrew Cuomo on Wednesday promised to legalize recreational cannabis in the state as part of his 2020 agenda.
The governor made his promise to legalize adult-use marijuana during his annual State of the State address.
The state is facing a multibillion-dollar budget gap and legalized recreational marijuana “could pour much-needed revenue into state coffers,” according to The New York Times.
If New York goes legal, analysts predict that it would quickly grow into one of the largest cannabis markets in the U.S.
Leading cannabis market research company Grand View Research sees enormous potential growth in the next few years.
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’s quest to go legal is creating a big opportunity, and one early cannabis industry leader is in position to capitalize.
This promising young cannabis company is:
- one of the largest cannabis companies in the US.
- one of the largest cannabis companies in New York.
- has a deal to be acquired by the largest cannabis company in the world.
Acreage Holdings Ready to Capitalize if New York Goes Legal
Acreage Holdings (ACRF, ACRGF) is one of the largest cannabis companies in the US and a direct play on New York.
Acreage is headquartered in New York and is one of the largest players in the state. Not only does Acreage own and operate a 70,000 square foot cannabis cultivation and processing center in New York, but it also owns four medical dispensaries.
These assets give Acreage Holdings a powerful, first-mover advantage over the competition.
But even if New York fails to go legal in 2020, I still expect big things from Acreage. Acreage has one of the best portfolios of cannabis assets in the entire US cannabis industry.
Acreage Operates in 19 States
Acreage is one of the largest cannabis companies in the US with operations or consulting agreements in 19 states. For example, Acreage owns a 65,000 square foot cannabis cultivation and processing center in New Jersey. Acreage also operates a total of 24 cannabis dispensaries in 18 states.
Acreage has Powerful Political Connections
Acreage has some of the best political connections in the entire cannabis industry. John Boehner, the former Speaker of the House, serves on the Acreage board of directors. Former Canadian Prime Minister Brian Mulroney also serves on the board of directors.
Acreage Has a Contract to Be Acquired by Canopy Growth Corp
Acreage has an acquisition deal that is the envy of the entire US cannabis industry. Acreage struck a deal to be bought by Canopy Growth Corp, the largest cannabis company in the world. This powerful partner gives Acreage a path to offering a huge portfolio of cannabis products and potential access to huge international markets.
Acreage Trades in the US and in Canada
Shares of Acreage trade on US and Canadian stock exchanges. In Canada, shares trade on the Canadian Securities Exchange under the ticker symbol ACRG. In the US, shares trade on the OTC market under the ticker symbol ACRGF. Both tickers are plenty liquid with millions of shares trading hands every day.
Acreage is Showing Signs of Strength after a Tough 2019
Despite the promising outlook, Acreage had a tough 2019, with shares falling more than 80% from the 52-week high.
Today shares are showing signs of a reversal, developing a strong level of support near the recent 52-week low.
Looking forward, I expect Acreage to rebound from this level and begin a new trend higher.
The Big Picture on New York and Acreage Holdings
New York is looking to legalize recreational cannabis in 2020. If it happens, the Empire State should evolve into one of the largest cannabis markets in the US. Acreage is in position to capitalize with a strong and growing presence in New York.
Michael Vodicka owns shares of Acreage Holdings at the time of this writing.
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