Like Christmas, which everyone knows is coming, the lack of surprise doesn't detract from the fact that it can be a big event. That's the effect that last weekend's deal by New York State lawmakers to legalize recreational cannabis is having on the marijuana sector. The state would only become the 15th in the US to allow recreational use of marijuana.
An agreement was signed last Thursday paving the way for the opening of an estimated US $ 4.6 billion cannabis market. With only the refinement of the proposed bill's wording left, the democratically controlled state legislature is poised to pass a bill next week that legalizes marijuana for adults 21 and older.
] According to reports, the new law would allow the sale of cannabis, which would be regulated by the newly established Office of Cannabis Management. Individuals should be allowed to grow their own pot, with a maximum of 12 plants per household.
Club-style lounges would also be allowed to open some & # 39; consumer sites & # 39; where the substance is sold and consumed.
Legal marijuana would also be taxed at a rate of 13%, generating significant revenue for the state and local districts. An additional excise duty will be added on a sliding scale that reflects the amount of THC, the active ingredient in cannabis. The tax structure is said to be similar to that for alcohol.
However, cannabis is not expected to be legally sold in New York for another year or so. But the move is an important step in the pursuit of federal legalization in the US
There are currently approximately 10 medical cannabis growers and operators in New York State, including some of the largest companies in the industry. including Acreage Holdings (OTC :), Cresco Labs (OTC :), Curaleaf (OTC 🙂 and Green Thumb Industries (OTC :). And the deal gives them a clear advantage over new operators entering the state.
The deal will increase the number of medical marijuana dispensaries in the state and increase the suitability for using medical marijuana for a wider range of diseases. In addition, existing medical dispensaries will have the ability to open new medical dispensaries as well as adult use dispensaries.
Keep an eye out for Cresco Labs
advantage in New York, Cresco Labs is a stock worth seeing in the cannabis world after reporting a great fourth quarter last week.
The Chicago-based company, one of the largest vertically integrated multi-state operators in the US, reported nearly quadrupling its revenues to $ 162.3 million for the three-month period ended December 31. Gross profit for the quarter was $ 95.7 million, compared to $ 7.65 million in the same period the previous year.
Company CEO and co-founder Charles Bachtell described the company's performance in 2020 as the & # 39; largest annual revenues up under tier one (multi-state operators).
Shares of Cresco Labs closed at $ 12.04 yesterday. In the past 12 months they have gained 310%. They are currently nearly 29% below the all-time high of $ 16.92 reached in February this year.
