If we look back at the evolution of marijuana, it is definite that the year 2019 has been a milestone in its transfiguration. With the growing interest of researchers and medical enthusiasts in the properties of medicinal marijuana that also come in form of cannabis edibles, it was first legalized as the recreational weed by an industrialized country like Canada and has led to a chain of opportunities to give birth to a billion dollars business once this sector starts producing marijuana in accordance with its demands. So far, 32 out of 50 states in USA have received legalization to use medicinal marijuana.
As we march on to the latter half of the year, this sector of marijuana business is hoping to widen its production capacity after its legalization in the state of New Jersey that will have some of the most suitable venues to offer to its manufacturing and distribution through the NJ marijuana dispensary. Last year in November, three bills meant for legalization of marijuana were received with support both by the Assembly and Senate of the state that claims to not only swell the recreational weed and medical pot program but also eliminate chances of teenagers knowingly or unknowingly getting involved in abuse through CBD and cannabis edibles. However, this step eventually failed in legalizing recreational marijuana altogether but it has received commendable support from the legislature.
While the legislators are interested in attaching a low combined tax of 14% on marijuana, Governor Phil Murphy who has genuinely extended his hand of support towards legalization wants the tax rate to be extended to 25% to eradicate the black market and make a way for the marijuana market to touch $850 million through sales by 2022. This escalation is bound to benefit a few stocks in New Jersey and they are as follows.
- Curaleaf Holdings (OTC: CURLF)
This company operates around 35 dispensaries including around 12 farms that grow marijuana and 10 processing units distributing around USA. Florida is home to more than half of these dispensaries but Curaleaf is looking forward to developing 2 acres of land for their greenhouse facility. The Federal law doesn’t allow inter-state transport of cannabis that leads us to the assurance that Curaleaf must have NJ marijuana dispensaries for their CBD and cannabis edibles to be distributed in the state that will further improve their retail and sales.
- TerrAscend (OTC: TRSSF)
TerrAscend is a marijuana company based in Ontario and has only recently received one of the six integrated licensees for NJ marijuana dispensary. Out of the 146 applications who wanted their licenses to be approved by New Jersey, nobody had a score than TerrAscend’s subsidiary. On receiving this license, TerrAscend will be able to produce, nurture and distribute marijuana and cannabis edibles within the state and will eventually witness growth after the state’s legalization of medicinal and recreational marijuana.
- Acreage Holdings (OTC: ACRGF)
Acreage Holdings is probable to benefit from the legalization of marijuana in New Jersey because earlier this year, they collaborated with Compassionate Care Foundation which is one of the six NJ marijuana dispensaries leading to half of its legal ownership. Furthermore, this company alone is responsible for matching the supply related to patients’ demands. By bringing NJ under the lawful producer of marijuana, Acreage Holdings is likely to increase its capital supply to the dispensaries thus proving profitable to their stock holders.
- MariMed (OTC: MRMD)
A company, whose sectors are not wholly limited to the cannabis industry, MariMed has still shown a lot potential of deriving huge returns after the legalization of marijuana in New Jersey. Last year, it acquired BSC group, a valuable participant in the race of acquiring license for NJ marijuana dispensary. MariMed has also announced its plans of investment in Sprout within a few months this year thereby improving its prospects.