It’s only 13 days away.
It could be the biggest day of the year for the US cannabis industry, and it could give US cannabis stocks a major jolt.
I’m talking about the US midterm elections.
No doubt you’ve been hearing about a potential blue wave.
For cannabis investors, I see a green wave on the horizon.
Four more US states are voting to legalize medical or recreational cannabis. That includes Michigan, North Dakota, Utah, and Missouri.
If these four states pass new cannabis laws, a total of 34 states would have legalized cannabis, with nine of those for recreational.
This supermajority looks like a key tipping point for the US cannabis industry.
I believe it sets the stage for the US to legalize medical cannabis at the federal level in 2019.
Some of the most powerful politicians in the country feel the same.
According to Dana Rohrabacher, a Republican congressman from California, the Trump administration is serious about updating cannabis laws in 2019.
Rohrabacher says “I have been talking to people inside the White House who know and inside the president’s entourage. I have talked to them at length. I have been reassured that the president intends on keeping his campaign promise.”
“I would expect after the election we will sit down and we’ll start hammering out something that is specific and real,” he added. “It could be as early as spring of 2019, but definitely in the next legislative session.”
As you can see, US cannabis laws are changing quickly.
The midterms should usher in another green wave and that should be great for the US cannabis industry and stocks.
Today, I am going to reveal one of my favorite US cannabis stocks that is a direct play on the high-growth US cannabis industry.
This company has four profit triggers that set it apart from the competition
- Vertical integration.
- Low-cost producer.
- Just completed $682 million acquisition, the largest acquisition in US cannabis industry history.
- Expanding internationally.
Medmen Enterprises (CSE: MMEN, OTCQB: MMNFF) is one of the largest and fastest growing cannabis companies in the US. The company is quickly emerging as an early industry leader and is a direct play on the high-growth US cannabis market.
Shares began trading on the Canadian Securities Exchange in July.
Despite the Canadian listing, Medmen is primarily focused on the US cannabis market.
The company owns a portfolio of cannabis greenhouses and dispensaries in high-growth states California, Nevada, and New York.
Medmen Operates One 45,000 Square Foot Cannabis Greenhouse and Building Two More
Medmen recently kicked off production at its brand new 45,000 square foot cannabis greenhouse located in Nevada. This facility is state of the art and is expected to produce more than 10,000 pounds of cannabis per year.
While this facility ramps up, Medmen is building two more cannabis greenhouses, one in Hot Springs, California and the other in Utica, New York.
Medmen Operates 14 Dispensaries in High-Growth States
Medmen currently operates 14 retail locations in high-growth states California, Nevada, and New York.
However, Medmen is about to get even bigger.
Medmen just acquired a license to open and operate 30 retail stores in Florida.
Medmen Sets Cannabis Industry Record with $682 Million Acquisition
Medmen has been busy building on its early industry leadership with one of the largest acquisitions in the history of the US cannabis industry.
On October 11, Medmen announced it was acquiring fellow US cannabis company PharmaCann for $682 million.
The acquisition is a huge expansion for Medmen.
Medmen will double the number of states its licensed to operate to twelve, with 66 retail centers and 13 cultivation centers.
Medmen Just Partnered with One of the Largest Cannabis Companies in Canada
Medmen is also expanding into international markets.
The company also recently announced a partnership with Cronos Group (NASDAQ: CRON), one of Canada’s largest cannabis companies.
Here are a few more details from the press release.
“The joint venture, called MedMen Canada Inc. (“MedMen Canada”), will develop branded products and open stores across Canada, leveraging Cronos’ Canadian reach and expertise, as well as MedMen’s class-defining retail expertise. MedMen is the largest cannabis retail chain in California, which welcomed adult use sales this year.
Medmen is Surging on the Chart
Medmen has been strong on the chart since going public. Shares just hit a new all-time high before pulling back a bit.
Looking forward, I expect Medmen to finish the year at a new all-time high on strong momentum from the midterm green wave.
The Big Picture
The US midterms could be a green wave for the US cannabis industry. With four states set to vote on new cannabis laws, the total number of US states with cannabis programs could jump to 34. Medmen is a great way to try and cash in on the high-growth US cannabis market. The company is an early industry leader and rapidly expanding with one of the largest acquisitions in the history of the cannabis industry.
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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