Three cannabis companies could benefit from legal cannabis in Maryland

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As Maryland advances its cannabis market, now is a good time to consider several stocks

Exactly two weeks ago, Maryland joined the list of states that approved the legalization of marijuana for recreational use. According to the ‘Vote Yes on 4’ campaign, Maryland would benefit economically, since it is estimated that it could receive around $135 million to $165 million annually in funds raised by taxes. This is also extremely beneficial news for cannabis companies that already have an established footprint in the region. Investors should focus on their portfolios as these stocks could have the potential to explode once the official launch date arrives.

One such company is Cresco Labs, which earlier this year announced plans to merge with Columbia Care to create a new industry leader. By joining forces, Cresco began to see its footprint expand to several states, including Maryland, as Columbia Care has three locations within the state. On a pro forma basis, Cresco claims to have many locations operating in the Old Line State today.

Curaleaf Holdings is a multi-state operator (MSO) with a presence in over 20 states. Its strategy of expansion into new markets is what has made this company one of the most recognized nationally.

Maryland is home to four of its dispensaries, and although it sells products in Missouri, it does not yet have a physical store in the area. However, now that the Show Me State has also joined the list, it may not be long before the firm looks to expand its footprint in that state.

Lastly, Trulieve Cannabis is the only MSO of the three that does not yet have a presence in both states that recently received the green light for recreational cannabis. Its focus has been in Florida, but in 2021 the company redesigned its business by acquiring Harvest Health & Recreation.

That allowed it to expand its presence and gave it a leadership position in Arizona. The company stated that its Maryland operations “have not been important to our business,” although that may now change as the market has an ideal position in recreational cannabis.