The world was in turmoil when the coronavirus turned into a global pandemic. While many segments have been plagued by this event, it has also spared the public health crisis in some ways, like the marijuana industry. Marijuana sales have increased significantly during the pandemic in the United States. Companies like Cresco Labs (OTC: CRLBF) and Green Thumb Industries (OTC: GTBIF) show interesting figures ever since and ask for a new value judgment.
Illinois has a stunning first cannabis year
Despite the United States still dealing with a limited legal marijuana market, sales are very positive for this year. For example, the state of Illinois posted an overwhelming $431 million in total sales since recreational legalization went into effect on January 1, 2020. This includes both medical and recreational sales.
33 states and the District of Columbia have legalized medical cannabis and 11 states plus the country’s capital allow recreational cannabis use. If more states legalize the use of cannabis with the new president and relaxed legislation, it could lead to a massive boom in the marijuana industry. It is not only a subject that concerns many residents in the United States. In countries such as Mexico and Lebanon, the measures regarding cannabis have also been improved or legalized during the pandemic, making Lebanon the first Arab country to allow medical use since the end of April.
Green figures in the green industry
Ultimately, it is expected that a possible relaxation of legislation throughout the United States will benefit the entire market. The more countries and states legalize marijuana, the easier it becomes to invest in cannabis supplies. In the state of Illinois, two marijuana companies have started a major climb. These are Cresco Labs and Green Thumb Industries. As of January 1 this year, they benefited greatly from the new recreational cannabis market. In Q2, Cresco saw a 216% year-over-year revenue increase to $94.2 million, and the company reported positive EBITDA of $16.4 million, which equates to an increase of $2.2 million. Green Thumb had sales growth of 167% year-over-year to $119.6 million, and reported EBITDA of $35.4 million, up from $2.3 million for the same period last year.
At the moment, Green Thumb Industries’ stock stands at about $21.25 which is an increase of 4.12%. Cresco Labs has an increase of 3.7%, which means that the share has a value of approximately $10.30.
It is time for the US to take further action
Federal legalization is still at a point where much is unclear between the parties involved. That is why several states have taken independent actions this year around the legalization of cannabis. The positive figures during the pandemic have once again demonstrated the importance of the marijuana industry and the potential in tax revenues that the legalized production has to offer. As a result, many states have stepped up their legalization efforts, despite their immediate attention to the coronavirus crisis.
This month New Jersey, Mississippi, South Dakota, Arizona and Montana have put proposals on the table for the legalization of cannabis. The market is not waiting if but when more states implement the legalization of cannabis and give the market a significant boost. It would be a nice Christmas gift for the shares of Cresco Labs and Green Thumb Industries.
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