Like many other states, the Pennsylvania economy has been wounded by COVD-19. However, the governor has a solution to repair some of the damage – legalize cannabis.
On Tuesday, Pennsylvania governor Tom Wolf (D) announced that legalizing recreational cannabis is a high priority on his fall legislative agenda.
Here are some more details from Marijuana Moment.
During a press conference on Tuesday, Gov. Tom Wolf (D) talked about his plan to address the COVID-19 crisis and included legalization prominently in his agenda. Tax revenue from marijuana sales could help “supplement” relief loans provided by the federal government, he said.
Asked about the prospects of advancing legalization legislation through a Republican-controlled legislature, the governor said, “I think there was some appetite for it before and my hope is that with the pandemic and the hit that we’ve taken to revenues that there might be a little more interest in it right now.”
Pennsylvania, the fifth most populated state in the U.S., already has a booming medical cannabis market. According to a report from mjbizdaily.com, medical cannabis sales are on pace to almost double in 2020 to $400-$500 million and could reach $1 billion in annual sales within three years.
Pennsylvania’s strong medical cannabis market creates a great platform for the state to take the next step forward and legalize recreational cannabis. In fact, this is a well-document path. Every U.S. state that has legalized recreational cannabis first legalized medical, including California, Colorado, and Nevada.
If Pennsylvania follows this same path, it would create another huge cannabis market and another great opportunity for cannabis investors.
Today I am going to reveal three cannabis stocks that are early leaders in Pennsylvania and are in a position to capitalize.
3 Cannabis Stocks Ready to Cash in on Pennsylvania
#1 – AYR Strategies (CSE: AYR, OTCQX: AYRSF)
AYR Strategies is a U.S. cannabis company headquartered in New York, New York, with a market cap of $215 million. AYR primarily operates in Massachusetts and Nevada. However, AYR just made a big move to expand into high-growth Pennsylvania, investing $57 million to purchase six medical cannabis dispensaries and cultivation and processing centers. Here are a few more details from the press release.
Ayr plans to acquire the membership interests in a licensed operator which includes a 143,000 ft² cultivation and processing facility with the initial construction phases comprising 45,000 ft² nearly complete. The 13-acre site provides ample room for further expansion even beyond the existing 143,000 ft² facility. The licensed operator also has the right to operate six dispensaries poised to open in excellent retail locations, most of which are clustered in the Pittsburgh and Philadelphia region. Three of these dispensaries are expected to open by January 2021.
AYR has been strong on the chart. Shares have seen a big rebound from the March low and recently hit a new 52-week high.
#2 – Jushi Holdings (CSE: JUSH, OTC: JUSHF)
Jushi Holdings is a U.S. cannabis company headquartered in Boca Raton, Florida with a market cap of $200 million. Jushi is another young cannabis company that is expanding into Pennsylvania. In June, Jushi announced it acquired a majority interest in Agape, currently in the process of opening three medical dispensaries in Pennsylvania with permits to open a total of 15 dispensaries in the state.
In August, Jushi announced it paid $37 million to acquire Vireo Health International’s cultivation and processing operations in Pennsylvania. These two deals give Jushi a significant presence in Pennsylvania across the entire supply chain.
Jushi has also been strong on the chart. Shares are up more than 250% since bottoming out in March and just hit a new 52-week high.
#3 – Terrascend Corp (CSE: TER, OTC: TRSSF)
Terrascend is headquartered in Ontario and has a market cap of $264 million and a strong and growing presence in Pennsylvania. In September of 2019, Terrascend announced its acquisition of Ilera Healthcare, one of just five holders of a super license that allows for retail dispensaries, cultivation facilities, and processing facilities.
Since the acquisition, Terrascend has continued to expand in Pennsylvania. For example, on June 30, Terrascend announced the opening a 5,000 square foot medical dispensary in Thorndale, Pennsylvania.
Once again, this is another cannabis stock that has seen big gains in the last few months coming out of the COVID sell-off. Shares are up 225% from the 52-week low with plenty of upside momentum.
The Big Picture on Pennsylvania and Three Early Industry Leaders
Pennsylvania Governor Tom Wolf is expressing strong support to legalize recreational cannabis to help the economy recover from COVID.
The state’s fast-growing medical cannabis market is a great platform to launch recreational sales. If it happens, I see three early industry leaders in a position to capitalize.
While I think that these companies have the best footing in Pennsylvania, that doesn’t mean they are worthy of being in the Cannabis Stock Trades’ model portfolio.
Join me as a member and I’ll give you unfettered access to the portfolio with my favorite stocks, my trade alerts, daily analysis, and more!
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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