Marijuana stocks are reaching new highs thanks to midterm results from four states.
Michigan voters, for example just approved marijuana legislation.
Adults over 21 will now be able to possess, grow, and use small amounts of pot legally. All will take effect 10 days after the vote has been certified. In fact, many believe it’ll be legal in the state beginning in December 2018.
“The victory in Michigan highlights just how widespread support is for marijuana policy reform,” Steve Hawkins, executive director of the Marijuana Policy Project, said as quoted by Forbes. “This issue does not only enjoy strong support on the coasts, but also in the Midwest and all throughout the country. Marijuana has now been legalized for adult use in one out of every five states and medical use in three out of every five…”
Utah approved medicinal marijuana.
Utah’s Proposition 2 will allow patients to obtain medical marijuana cards for qualifying conditions, such as HIV/AIDS, cancer, chronic pain and multiple sclerosis.
However, it does prohibit the smoking of marijuana. But you can vape, and use edibles, according to Vox.com. “The measure also sets up a system through which state officials will license and regulate medical marijuana businesses, from growers to dispensaries. And it allows growing up to six pot plants for personal medical use, but only if a patient lives more than 100 miles from a licensed dispensary.”
Voters also approved medical marijuana in Missouri.
Amendment 2 will impose a 4% tax on sales of medical marijuana. From this, funds will also go to the state’s veterans commission.
In North Dakota, voters rejected the legalization of marijuana by a margin of 41% in favor, and 59% against. Two years ago, the state’ did approve a medical cannabis ballot initiative by a strong margin of 64% to 36%, though.
“I think it’s safe to say federal laws are in need of an update,” noted Hawkins. “We hope the results of this election will inspire Congress to finally start addressing the tension that exists between state and federal marijuana laws in our nation.”
There are now 33 U.S. states that have legalized marijuana in some way. Recreational marijuana is now legal in 10, including Washington, D.C. That’s only expected to grow, near-term.
With many marijuana stocks pulling back in recent weeks, this may be the catalyst that could send most – if not all to higher highs.
Here are three of the top marijuana stocks to own on legalization.
MedMen Enterprises (MMNFF)
The company operates 19 licensed facilities in California, New York and Nevada, and recently obtained a license to do business in Florida. Better still, it noted it landed “prime retail locations” in Florida, with long-term leases in Miami Beach, Ft. Lauderdale, West Palm Beach, Key West and St. Petersburg.
The company even just closed an acquisition of a dispensary and a cultivation license from Treadwell Nursery, a Florida company that has been approved to grow it.
The company is also involved with the Arizona medical cannabis market with an acquisition of Monarch. By the way, Arizona is one the largest medical markets in the country with over 172,000 current patients. And it also extended its operations in Chicago. Illinois is one of the fastest growing medical marijuana markets in the U.S. In fact, since the year began, qualifying patients jumped 41%.
OrganiGram Holdings (OGRMF)
OGRMF produces and sells medical marijuana in Canada. With Canada legalizing marijuana use on the federal level, the company is ramping up production to capitalize on new market opportunities as an existing licensed producer. An active expansion includes a 15,000 sq. ft. extract processing facility that could prove quite useful, as the market begins to explode.
Another reason to like OGRMF is its agreement with Nova Scotia Liquor Corporation.
“We are pleased to announce our supply agreement with NSLC,” says Greg Engel, Organigram’s CEO. “Our home markets have always been a key priority for Organigram and this announcement solidifies our position as the market leader here in the Maritimes. With supply arrangements in place in six provinces, we take great pride in our place as a national leader working towards a sustainable and successful adult-use recreational cannabis market.”
Scotts Miracle-Gro Company (SMG)
The company, which manufactures, markets and sells consumer lawn products globally is seeing great interest as the company expresses interest in selling to cannabis growers, too. In fact, they’re selling equipment for hydroponics, a method of growing that allows for the production of cannabis after acquiring General Hydroponics. According to The Street, “the company’s revenue for the past 12 month is about $2.6 billion. About a tenth of that comes from their hydroponics business. That should grow, especially now…”