The United States cannabis industry is expanding in every way…
When I look toward the future of cannabis, I see nothing but expansion.
Legalization efforts expanding – with Arizona‘s adult-use legalization measure officially qualifying for the November ballot with no less than 420,000 signatures while 68% of voters in New Jersey look to make it the first mid-Atlantic state to join the recreational club.
Companies expanding to new states – with Curaleaf Holdings Inc. (OTC: CURLF) becoming the biggest cannabis company in the world by revenue after its acquisition of Grassroots, giving it an impressive footprint stretching all the way from Massachusetts to California.
Sales expanding – with legal cannabis revenue surpassing popular industries like the National Basketball Association (NBA) and hard seltzer.
And all along the way, the shares you own at this very moment are setting you up for the potential to achieve life-changing wealth.
I know this because of the record-setting sales that are happening each time a new state legalizes adult-use cannabis.
More Sales, More Profits, More Stock Price Appreciation
By January 1, 2021, Michigan and Illinois will have a full year of adult-use cannabis sales under their belt.
They are crushing it, and I’m going to show you in just a moment why that has me so excited.
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Right now, Michigan is on track to potentially generate $450 million in revenue in its first year of recreational sales, while Illinois has sold $300 million worth of cannabis products in the first 7 months of the year.
That puts Illinois on pace to hit over $500 million in revenue – but even that might be too conservative of an estimate considering the fact that its adult-use sales jumped a staggering 28% from $47.6 million in June to nearly $61 million in July.
To give you some context here, take a look at the chart below that compares Illinois’ first year of monthly adult-use sales to Colorado’s.
Keep in mind that Colorado was one of the very first states to legalize adult-use cannabis and, in its first year alone, surpassed an unprecedented $303 million in total legal adult-use sales.
With this kind of growth, Illinois could potentially reach $686 million in adult-use cannabis sales this year.
But here’s the big takeaway.
As the dominos fall for cannabis legalization, the states launching new recreational frameworks have more opportunities than ever before.
When Colorado launched recreational cannabis sales in 2014, we didn’t have anywhere near the variety and quality of products that we do now.
Today, dispensaries have more and better products to sell, from THC-infused chocolate bars to CBD-infused sparkling beverages, creating a wider range of products to reach even more customers.
The perception of cannabis use has also shifted dramatically, with more people now viewing cannabis as a wellness product than at any other time in history.
Just since voters in Colorado and Washington became the first to fully legalize cannabis in 2012, national support for cannabis legalization has increased from a mere 50% all the way to 67% today.
Consumers are more willing to try cannabis as stigmas fade away – even traditionally “red” states like Montana and South Dakota have adult-use cannabis legalization measures on the ballot this November.
Finally, states also have better data points and information on setting up a tax structure that works for everyone.
With Arizona, New Jersey, and possibly Montana up next for full legalization, I can’t wait for them to join the recreational club and allow some of our top picks to sell even more products, generate even more money, and set you up for even more profits.
Advisory Board Member, National Institute for Cannabis Investors
Up Next: These Top 32 Cannabis Companies Are Capturing 80% of the Sales
You need to focus your investments on the cannabis stocks that are most likely to win. To do that, you need to know how much of the market these cannabis companies can capture for themselves. That may sound like a daunting task, but you don’t need a crystal ball to figure it out. You have Executive Director Don Yocham – and he’s already done the work for you. Find out which 32 cannabis companies have secured a whopping 80% of the sales.
31 responses to “More States Look to Make Cannabis Legal as They See First-Year Sales Surge”
August 17 2020