Will The Big Apple Go Green This Time Around And Legalize Adult Use Cannabis? – Technical420 | Technical420

New York is one of the largest markets in the world for a variety of industries and cannabis is not expected to be any different…

We believe The Parent Company is an attractive way to be levered to the New York cannabis market and is an opportunity to be aware of. The cannabis firm is backed by global music icon JAY-Z (Shawn Carter) and the Roc Nation Empire and we find this to be significant.

The Parent Company recently said it expects Manhattan’s cannabis market (medical and recreational) to generate more than $1 billion of revenue per year and this is a number that caught our attention.

Although it has taken several years for New York’s cannabis industry to ramp up, we have always been bullish on the long-term opportunity that is associated with it. According to The Parent Company, the Tristate (Connecticut, New Jersey, New York) cannabis market could be a $8.9 billion market opportunity by 2025. This is a region that we have been highly focused on due to the potential value that can be generated for companies that are levered to it and believe our readers need to be aware of the recent developments.

After New York Governor Andrew Cuomo came under fire for the way he treated women that worked in his office, many Democrats have called for his resignation. Although the current situation has caused the market to second guess the potential for legal recreational cannabis in New York, we do not expect Governor Cuomo’s situation to impact this.

In the near future, the state of New York could be surrounded by legal recreational cannabis markets. We believe the trend in the northeast US will play an important role in the legalization of cannabis in New York and consider this to be a major potential catalyst for the entire industry.

Earlier this week, Governor Cuomo announced that New York is very close to legalizing recreational cannabis and said, “I think this [cannabis legalization] should’ve been passed years ago. I think too many people have been imprisoned, incarcerated, and punished. Too many of those people are Black, Latino, and poor. It’s exaggerated the injustice of the justice system.”

Although we are favorable on the push that Governor Cuomo is making for legal recreational cannabis, an analyst from BTIG believes the move is meant to distract people from recent sexual harassment allegations made against him. BTIG also stated that a vote on the legislation could take place before the April 1st due date for the state’s budget.

Economies all over the world are looking for new avenues to generate taxable revenue and legalizing cannabis could be part of the solution. States like Illinois and Michigan, which legalized recreational cannabis in 2020, have seen a massive increase in tax revenue from the cannabis industry. We expect a market like New York to be significantly larger than these markets and are bullish on the potential growth prospects that are associated with it.

If New York legalizes cannabis, it would likely represent a major milestone for the US cannabis legalization movement. Although the legislation is the fifth version to be proposed in New York since 2013, the COVID pandemic helped raise the state’s budget deficit to $15 billion. We believe the legalization of cannabis would help decrease the deficit and expect to see this version of the bill to be approved.

According to MSNBC’s Carl Quintanilla, BTIG analysts said that “Governor Cuomo is more motivated now to pass a highly popular piece of legislation that could have the added benefit of shifting public attention and at the same time notch a win for the state and himself”.

During the last year, we have heard less about New York’s cannabis market and expect this trend to change in the near future. Some of the companies that have a presence in New York include: Canopy Growth Corporation (WEED.TO) (CGC), Acreage Holdings (ACRG-AU.CN) (ACRDF), and Vireo Health International Inc. (VREO.CN) (VREOF).

If you are interested in learning more about the companies that could benefit from the passing of recreational cannabis legislation in New York, please email support@technical420.com with the subject “New York Cannabis Companies” to be added to our distribution list.

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Source: Will The Big Apple Go Green This Time Around And Legalize Adult Use Cannabis? – Technical420 | Technical420