Legal Pot Sales Start Tomorrow for NJ, Rolling in the Lucrative NYC Market
Garden State Green
New Jersey voters overwhelmingly approved the legal sale of marijuana for recreational use during the November 2020 election. Tomorrow, the state is set to become the first in the New York City metropolitan area to begin selling licensed cannabis.
Broadly stated, investors are intrigued by what this might mean for the industry at large. Beginning tomorrow in New Jersey, six dispensaries previously licensed only for medical applications can begin recreational sales to adults 21 and over. A seventh location is set to begin later this month.
Governor Phil Murphy said he’s not all that interested, but joked he would be arriving “with a shopping cart” if it was scotch being legalized. Market observers say the product’s legalization can bring new jobs and investments to the entire region.
It’s not just New Jersey’s legalization or the pending approval of sales in New York that has Wall Street feeling buzzed about pot stocks. Congressional activity has been pointing toward the industry’s potential expansion as well.
Just a couple weeks ago, the House of Representatives passed the MORE Act, which would decriminalize the use of marijuana at the federal level should it ultimately become law. If the federal ban on pot goes away, marijuana companies operating in multiple locations could transport their products across state lines. Banking would also be easier for cannabis companies, and the legislation could pave the way for more listings on the NYSE or Nasdaq.
Money poured into cannabis stocks throughout March. Alternative Harvest ETF (MJ), the pot industry’s largest and oldest exchange traded fund, gained more than 10% last month. Alternative Harvest had been down 50% over the previous 12 months, but it typically performs well when potential reform is in the news.
Meanwhile, there’s a cannabis conference being held today by SRAX (SRAX), a fintech company that provides publicly traded companies with data and insights. Speakers are gathering in Los Angeles for presentations at the Sequire Cannabis & Psychedelic Conference. From New Jersey to Hollywood, and at plenty of stops in between, many of the cannabis industry’s seedlings are starting to grow.
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