www.Investorideas.com, a global news source covering marijuana and hemp stocks, issues a sector snapshot looking at multi-geographically located cannabis companies positioning to benefit from the recent headline news Massachusetts makes history with launch of U.S. East Coast’s first legal pot shops.
With this recent milestone, investors are looking East for new doors opening in the cannabis market, once dominated by the West Coast.
How big is the opportunity for the players competing for market share? According to an article in GreenMarketReport, “Massachusetts began selling adult use cannabis this week. Industry experts believe that the total Massachusetts cannabis market will exceed $1 billion annually generating hundreds of millions in taxes for the Commonwealth. Massachusetts has a population of 6.8 million people and over 47 million people live within a 4-hour drive of Boston, MA.”
The Boston Globe reported, “On Tuesday, the first day of legal marijuana sales in Massachusetts, consumers spent a total of $440,011 at two stores on more than 10,700 individual cannabis products, according to data released by the state Cannabis Control Commission Wednesday afternoon…. Hundreds of customers gathered in long lines at both shops Tuesday and Wednesday, waiting more than three hours in some cases, for the chance to be among the first to buy cannabis legally. NETA and Cultivate each said it had sold out of certain products but still had inventory remaining as of Wednesday afternoon.”
CLS Holdings USA (OTCQB:CLSH), a geographically diversified cannabis company, is targeting Massachusetts in addition to Michigan and Nevada. The Company just announced in early November that it “has loaned $5 million to In Good Health, a licensed medical dispensary in Brockton, Massachusetts with a significant market share. In Good Health is located 25 miles south of downtown Boston and is one of the 38 licensed dispensaries in the state. The Brockton dispensary was the second licensed dispensary in the state and has been operational since September 2015, which has been medical only up until this time. In Good Health is currently servicing 17,000 registered patients and delivering to 1,700 homes with key product offerings of flower, concentrates, vapes, edibles, pre-rolls and tinctures.”
In a recent interview with Investor Ideas, Director of CLS Holdings, Andrew Glashow, said, “States for us that make a lot of sense are Massachusetts and Michigan. We have made a strong push to enter the Massachusetts market. We have signed up two transactions in that marketplace. Massachusetts represents for us a massive, massive marketplace; we are aiming, by 2020, for that to represent $150 Million U.S. plus in total revenue.”
Listen to the recent podcast with CLS Holdings USA
CLS Holdings with their Oasis dispensary in Vegas have proven successful, announcing revenues of over $800,000 this fall and being one of the first dispensaries in Vegas and hope to repeat their formula in Massachusetts.
Watch the video:
Vegas & Cannabis: A perfect pairing – CLSH at MjBizCon2018 and tour of Oasis Cannabis Dispensary
Another company taking note of the opportunities in Massachusetts includes Norwood-based MariMed Inc. (OTC:MRMD), a multi-state cannabis operator that develops, owns and manages cannabis facilities and branded products lines. MariMed’s team has developed state-of-the-art regulatory-compliant facilities in DE, IL, NV, MD, MA, and RI.
The company just announced Third Quarter Financials showing a big part of their revenue growth derived from there. “Revenues of approximately $8.4 million, up 88% year-over-year. The increase in revenue was primarily due to (i) the growth of rental income from MariMed’s facilities in Maryland and Massachusetts, which were fully and partially developed respectively and leased to tenants, (ii) increased supply procurement services provided to cannabis-licensed clients and other cannabis entities, and (iii) management fees and additional rental revenue which MariMed earns based on a percentage of revenue generated by its cannabis-licensed clients.”
Acreage Holdings (CNSX:ACRG-U.CN), a high profile U.S. company that recently listed on the Canadian Securities Exchange, has one of the largest geographic footprints of any cannabis company; currently owning and/or operating cultivation, processing and dispensary operations. The company, looking at their continuous expansion across the U.S. in 2018 and their milestones reports, “Adult use begins in Maine, Massachusetts and California. Acreage enters New Jersey and prepares for imminent operational expansion in New York, Florida and Maryland. Acreage announces the appointments of former Speaker of the United States House of Representatives John Boehner and former Governor of the State of Massachusetts Bill Weld to its Board of Advisors.”
As the map of legalized cannabis in the U.S. expands, with hopes of someday Federal legalization, the race is on for companies to expand their footprint and follow the marijuana money trail.
For investors following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
About Investorideas.com – News that Inspires Big Investing Ideas
Follow us on Cannabis Social Media
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by Investor Ideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers.
Disclosure: this podcast is a paid for distribution on Investorideas and social media. Learn more about Investor Ideas podcast and news publication services and costs https://www.investorideas.com/News-Upload/
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp. Disclosure: CLSH is a paid PR, news and social media client of Investorideas.com and is this month’s exclusive sponsor of our daily cannabis potcast.
Additional info regarding BC Residents and global Investors: Effective September 15 2008 – all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with SEDAR. Read for more info: https://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.
Investor Ideas does not condone the use of cannabis except where permissible by law. Our site does not possess, distribute, or sell cannabis products.
<img src=”http://www.globenewswire.com/newsroom/ti?ndecode=MTUwIzc0MzYyMzA=” alt=”” width=”1″ height=”1″/>