Four relatively unknown stocks could benefit from New Jersey’s legalization of recreational marijuana
New Jersey could soon legalize cannabis after the state’s Assembly and Senate both approved legislation this past November. The next step is to have The Garden State’s governor, Phil Murphy, sign off on the bills and he has already stated that he is in favor of legalization. If he gives the green light to the bills, four stocks in particular could see substantial increases.
Curaleaf operates 35 dispensaries, ten processing facilities and 12 grow farms in the U.S. It is building a two-acre greenhouse in New Jersey, which could prove to be crucial to the state’s marijuana distribution market since federal regulations still prevent interstate transportation of marijuana. The greenhouse will allow Curaleaf to maintain complete control of its supply in New Jersey, from cultivation to retail sales.
TerrAscend, through its NETA subsidiary, now possesses a vertically integrated license in New Jersey. The fact that only six were awarded out of 146 applicants, coupled with the fact that NETA received the highest score, will prove highly beneficial to the company and its stock price. NETA will be able to cultivate, process and sell cannabis in New Jersey through the license.
Acreage Holdings would benefit from legalization, as well. This past March, the company teamed up with the Compassionate Care Foundation (CCF), a licensed alternative treatment center in the state. It supplies the capital that allows CCF to meet patient demand and could become a major cannabis supplier in New Jersey.
MariMed acquired BSC Group this past October. BSC is a licensing and consulting firm for the cannabis industry that is headquartered in New Jersey. MariMed also invested this past September in Sprout, a company that makes marketing software that could help dispensaries enhance their customer loyalty programs.
2019 is going to be an interesting year for the marijuana industry and, in particular, the marijuana stock market. Changes won’t come overnight, but there will be a significant amount of growth throughout the year.