Massachusetts began selling recreational cannabis on November 20, 2018. If early sales are any indication the New England state is set to grow into one of the largest and fastest growing cannabis markets in the US.
According to local reports, lines were wrapped around the street and eager consumers were willing to wait in line for hours.
Here are some more details from the Boston Globe.
Hundreds of customers hoping to purchase marijuana on the first day of recreational sales in Massachusetts were waiting for hours in long lines Tuesday, despite the cold temperatures and rainy, overcast weather.
Supply at Cultivate in Leicester remained strong throughout the day, though the dispensary stopped letting customers join the line at about 5:30 p.m. to make sure everyone could get through before they close at 8 p.m.
At the New England Treatment Access shop in Northampton, the wait time as of 3 p.m. was about one hour — much shorter than two-and-a-half-hour wait time around 11 a.m.
According to a string of reports, this is the tip of the iceberg. Massachusetts is set to grow into one of the largest cannabis markets in the US in the next two years.
Arcview Market Research, one of the most respected cannabis market research firms in the industry, predicts that Massachusetts recreational and medical sales are on pace to grow to $1.2 billion by 2020.
This incredible growth is creating another great opportunity for cannabis investors.
I believe that the two young and promising cannabis companies below are early leaders in Massachusetts’ high-growth cannabis market.
MariMed (OTC: MRMD) is a young and promising cannabis company headquartered in Newton, Massachusetts. This company is a direct play on Massachusetts going legal. Marimed owns an impressive portfolio of cannabis services and assets.
It offers consulting services to cannabis companies looking to a acquire hard-to-get permits and build cultivation centers.
Marimed also owns cultivation facilities that it leases to other cannabis producers and a cannabis dispensary. For example, in November of 2017, MariMed acquired a 137,000 square foot facility in New Bedford, Mass. that it quickly turned around and leased to ARL Healthcare, a local cannabis grower. MariMed is also developing an 8,000 square foot dispensary in Middleborough, which has also been leased to ARL Healthcare.
On November 12, Marimed revealed an aggressive bet on the high-growth CBD market, announced a $30 million investment in GenCanna.
Marimed’s business model is delivering impressive results. Revenue in the first nine months of 2018 was up 88% from last year to $8.4 million. Operating income increased 75% to approximately $2.0 from approximately $1.1 million during the nine months ended September 30, 2017.
Marimed has been one of the best performing cannabis stocks of 2018. Shares are up more than 300%.
MPX Bioceutical (OTC: MPXEF) is a Canadian cannabis company making a big splash in the US – including Massachusetts.
Here are some more details from a recent press release.
The Company owns the majority of Massachusetts-based cannabis management company IMT, LLC (“IMT”) and real estate holding company, Fall River Developments, LLC (“FRD”). While not cultivating or selling cannabis products itself, IMT has a long-term management agreement to provide material support to Cannatech Medicinals Inc. (“CMI”), which is licensed to directly cultivate, produce, own, possess and sell cannabis and cannabis-infused products.
The Company has completed construction of the first of three planned dispensaries, and expects that two of its three planned dispensaries will be fully operational during the fourth quarter of calendar 2018. It is also in the process of constructing a cultivation and processing facility, which is owned by FRD and will be operated by the Company. The Company expects to commence cultivation at this facility during the third quarter of calendar 2018.
MPX has been mostly even in 2018.
The Big Picture
Massachusetts just went legal, putting the state in position to be a nucleus of the East Coast cannabis scene. Marimed and MPX are both early industry leaders making big moves to cash in on that growth potential.
Editor, Cannabis Stock Trades
About the Author & Cannabis Stock Trades
Michael Vodicka is a globally syndicated equity analyst with more than 20 years of experience in 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.
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