November 23, 2018. DETROIT (PENNYSTOCKS.NEWS)
Recently Legalized States
Tuesday was the first day that cannabis was sold legally in the state of Massachusetts. Two stores generated over $440,000 in one day. The cannabis industry is expected to grow very fast and over the next few months. Those two stores sold roughly 10,700 individual cannabis products. These products were from marijuana flowers to a concentrated pot and pre-rolled joints that were infused with THC. The THC is the main psychoactive component in cannabis.
As of right now, two stores are operating but, the cannabis control commission has approved roughly 24 retail stores in Massachusetts. In Massachusetts cannabis is taxed at 20% as opposed to the 40% that the regular tobacco products get taxed. Massachusetts is looking to disperse the money it gets from the cannabis tax to other areas such as public health, public safety, and educational programs. At the rate that the cannabis industry is growing it is projected to reach $200 billion in global retail sales. In addition to the 33 states that have legalized medical cannabis. Canada went a set forward and legalized marijuana in the federal level. Uruguay was the first country to legalize the substance federally. Also, 30 other nations are following suit and hope to legalize medical marijuana soon.
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Canadian Cannabis Companies
The Canadian cannabis companies are looking to expand to bigger markets when the opportunity presents itself. Most seem to expand into the US and European markets. Some have already gone to the European markets and others in the United States. The companies that are operating in the states that have made medical marijuana legal have witnessed great gains through sales and revenue. The USA is a significant contributor to the cannabis industry and is expected to be an estimated $40 billion. While the Canadian cannabis sector is estimated to be around $7 billion, with the cannabis market being hot, it has led to many new companies to raise. This will give companies that are grandfathered in, a competition that is expected to cause the price of their products to fall.
What to Look Forward
The cannabis industry still has much more to offer. It is one of the hottest sectors, and it does not seem to be slowing down any time soon. Investors should keep a close eye in the USA cannabis market. If the United States legalize medical cannabis federally, then the $200 billion in global sales looks a thing within reach. Approaching this milestone is what every company in the cannabis sector is hoping for. With every election, more and more states legalize medical cannabis. With proof of Massachusetts and how well the cannabis sales were on the first day of the sale of legal marijuana in only two stores. Other states might wish to legalize the substance and get taxes where they can put it in their Infrastructure. Some states see an enormous gain by legalizing medical cannabis, and this may lead the US government to legalize it on a federal level as Canada did recently. Overall, the future for the cannabis industry looks bright.
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