These cannabis stocks could break out if Maryland legalizes recreational marijuana

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Investors should keep an eye on these companies and Maryland’s progress with cannabis

Maryland is among one of the states favored to legalize marijuana. In fact, different polls indicate that the state’s residents are in favor of a referendum to give life to recreational cannabis consumption. For many investors this could be great news as there are three cannabis stocks that would benefit greatly through possible enactment.

In 2014 Maryland opened this door to the medical sector and with nearly a decade of operating successfully, many think it is time to give the recreational market a chance. If so, it would make it the 20th state to welcome adult-use marijuana.

One of the top targets is Trulieve. While the company has notable dominance in Florida, the multi-state operator has also expanded in the Northwest, with about 35 dispensaries in the region. In addition to a license for a cultivation and processing facility, the company has licenses for four dispensaries in Maryland. Its presence in the Old Line State was established when it purchased Harvest Health & Recreation last year.

Another cannabis stock with strong growth in this state is Curaleaf. The company has already reached the maximum (four) dispensaries allowed in Maryland.

Part of that has led it to report revenue of $338 million in the latest quarter, up 8% year over year and sequentially. The operator also has a presence in two neighboring states in Pennsylvania and four in New York. Overall, it has 17 stores.

And then there is Ontario-based TerrAscend. Although it is the smallest in terms of capitalization among the three, TerrAscend has big plans in the pipeline in Maryland. The firm acquired a 20,000-square-foot growing and processing facility in the state last year from Curaleaf for $27.5 million. It also expanded its footprint there after taking over a dispensary near the Pennsylvania and West Virginia borders.