New Jersey has decided to hold off on recreational marijuana
Yesterday, much to the disappointment of the state’s cannabis fans, New Jersey decided to hold off on making a decision regarding recreational marijuana use. Lawmakers were expected to vote on the measure; however, there wasn’t enough support at the last minute to approve the legislation. The change of heart has already created ripples in the marijuana stock markets, with some companies feeling the pressure more than others.
New Jersey’s General Assembly had no problem passing the vote. However, when the bill got to the Senate, lawmakers turned away. Sponsors of the bill were not able to find the last three or four votes they needed to see recreational marijuana come to the Garden State.
After the announcement of the bill’s failure, companies such as Curaleaf Holdings and Green Thumb immediately felt the sting. Despite a major deal with CVS Health last week, Curaleaf’s stock dropped 5% by the close of trading. It has dropped another 2.5% since. Green Thumb also dropped 5% and has fallen an additional 0.9%. Green Thumb had planned on opening a cultivation center and retail store in New Jersey in the near future.
MariMed’s stock dipped 3% before rebounding slightly. MariMed doesn’t operate in the state, but recently acquired a cannabis consulting company there and has stated that New Jersey was “one of the markets” it was considering for expansion.
Terrascend was another casualty of the failure, with its stock dipping 2%. The company had recently been given a permit to apply for a vertically integrated license in the state that would allow it to offer cultivation, processing and retail operations.
There is still hope for recreational marijuana in the state. Lawmakers will take another stab at it in May and, if that fails, again next November.