Earlier this November, cannabis advocates scored several important ballots wins on Election Day. Michigan was one of the states that voted to approve recreational use of cannabis and has now become the 10th legalized state in the U.S.
In addition, Utah and Missouri legalized medical cannabis use. According to recent data published by New Frontier Data, the three new markets are projected to account for more than USD 1.2 Billion in additional sales for a combined total of USD 2.1 Billion in total legal sales by 2025. This increase will create more than 30,000 additional cannabis jobs over the same period. After the midterm elections, cannabis legalization, of some form, has occurred in about 60% of the country and based on New Frontier’s research, legal retail sales revenues are currently estimated to be USD 10.3 Billionin 2018. Green Growth Brands (OTC: GGBXF), Aphria Inc. (NYSE: APHA), Tilray, Inc. (NASDAQ: TLRY), Canopy Growth Corporation (NYSE: CGC), Aurora Cannabis Inc. (NYSE: ACB)
Medical cannabis accounted for most of the market last year, with the pain management sub-segment holding around 75% of the medical market valuation, or USD 5.48 Million. With research and technology rapidly evolving in the medical cannabis market, regulators are expected to tone down restrictions. Now, after Utah and Missouri have moved to legalize medical cannabis, the move highlights the widespread appeal of the products. “The prospects for moving cannabis legislation are better if the House can pass bills,” Vivien Azer, a Cowen analyst covering the cannabis industry, told CNBC before the midterm results. “Given popular support for cannabis legislation and a preference by many Senate Republicans to respect state’s rights, a GOP Senate could advance a cannabis bill.”