Cannabis industry is rapidly expanding in the U.S. as more and more states are legalizing medical and even recreational marijuana use. New Jersey is one of the states that has shown an interest in legalizing cannabis. The legislators, governor, as well as residents of New Jersey appear to favor the idea of legalizing adult-use cannabis. So, it’s only a matter of time before marijuana is legalized in the Garden State, creating opportunities for marijuana companies.
The legalization will surely create several opportunities for cannabis stocks. Following are some of the stocks that are going to benefit the most, hence making them best buys today:
Canopy Growth Corp
Canopy Growth Corp will surely benefit from the legalization of marijuana in New Jersey. With the legalization, Canopy Growth Corp is betting on its deal with Acreage Holdings to go through. Once the deal is finalized, Canopy Growth Corp will become one of the top marijuana companies in U.S. and worldwide. With more operations and resources to take advantage of, their stocks will rival some of the major multi-state operators in the country.
Canopy Growth Corp is building on its capacity to manufacture marijuana. However, the current New Jersey market offers limited growth, that’s why Canopy Growth Corp and many other marijuana companies are looking across the globe for more growth opportunities. Once the New Jersey market opens for business however, Canopy Growth Corp is going to take advantage of it to strengthen its position.
Charlotte’s Web is another company with a big presence in the United States in the legal marijuana market. The company will have to play by the same rules as Canopy Growth Corp because it is listed on the TSX. However, it could begin selling CBD products that are not derived from hemp in the states that have legalized it, that wouldn’t be in compliance with the TSX and would conflict with federal laws.
However, since Charlotte’s Web already has numerous retail locations across the country – you are likely to find NJ marijuana dispensary from the company as well – the company will benefit a lot from the legalization of marijuana in New Jersey. This is mainly because the company already has a big head start in developing and building a brand. Not to mention the company will also have a lot of time to build trust with consumers which is extremely important when it comes to medical marijuana.
TerrAscend is another company that could benefit from marijuana legalization in New Jersey. Even though the company has its roots in Canada, it has 6 vertically integrated licenses in New Jersey as well. In fact, NJ Health Department received about 146 applications for the 6 licenses and NETA (subsidiary of TerrAscend) scored the highest among all of them. Thanks to this license, the company will be able to freely process, cultivate, as well as sell marijuana from its own NJ marijuana dispensary within the Garden State. The benefits that TerrAscend will receive will be substantial when marijuana becomes legal in New Jersey.
Trulieve Cannabis Corp
Unlike the above-mentioned companies, Trulieve Cannabis Corp is listed on CSE, which means it can expand to any states that have legalized marijuana. Trulieve Cannabis Corp is a multi-state operator that has strong presence in Florida and they are expanding to other states like Connecticut, California, Massachusetts, and New Jersey.
Since Trulieve Cannabis Corp is listed on CSE, it can benefit heavily from marijuana legalization in New Jersey because it can establish a presence in the state well before the TSX-listed stocks. So, it basically has a head start on future competition. Once marijuana is legalized in NJ, Trulieve Cannabis Corp will probably switch over to TSX and NYSE. For now, the company continues to grow its brand while staying on the CSE.
Curaleaf Holdings is another company that has strong presence in the country with 35 dispensaries, including NJ marijuana dispensary, 10 processing facilities, and dozens of cannabis cultivation farms. Most of the company’s dispensaries are situated in Florida, but they have big plans for establishing in New Jersey too as they are currently developing a 2-acre greenhouse facility in the state.
As the federal government doesn’t allow the interstate transport of marijuana, it’s important for marijuana companies like Curaleaf Holdings to establish their operations in the same states in which they run their dispensaries. This allows Curaleaf Holdings to have complete control of its supply chain and the quality of products sold on its retail stores like NJ marijuana dispensary.