On Election Day, Nov. 3, voters in New Jersey — where there’s already an existing medical cannabis market — will consider legalizing adult use.
The Garden State will likely vote “yes,” according to Cantor Fitzgerald analyst Pablo Zuanic. As a result, several big-name cannabis companies stand to benefit.
“We think NJ voters are likely to approve rec legalization this [November],” Zuanic said in a note this week. Polls indicate 65% approval among voters.
Who Benefits From Legal Cannabis In New Jersey?
A vote for cannabis bodes well for a company like Curaleaf Holdings Inc. (OTCQX: CURLF), and they should “trade up on the news given market share and sales exposure,” the analyst said.
Acreage Holdings Inc. (OTCQX: ACRDF), which has two stores in the state, will also benefit from New Jersey “going rec,” he said.
Green Thumb Industries Inc. (OTCQX: GTBIF) would likely add two more stores and “add capacity once there is clarity on the state’s path to rec,” Zuanic said.
“But of these two, we understand NJ would be a larger % of company sales at TerrAscend.”
How Long Would Adult Use Take To Launch?
Today, 11 states allow legal recreational use: Colorado, Washington, Alaska, Oregon, California, Maine, Massachusetts, Nevada, Vermont, Michigan and Illinois.
In each market, it has taken a year or longer for state legislatures to actually get a rec program up and running.
New Jersey “will be slow,” Zuanic said, citing red tape, pending lawsuits and “no clear plan post ballot.”
Pennsylvania’s legislature, which is Republican-controlled, may enact a rec program by mid-2021 versus a New Jersey start date in mid-2022.
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