Multistate operators (MSOs) are in a good position to capture sizeable market capitalization as institutional investor money flows into the US cannabis industry, according to Roth Capital Partners.
A catalyst will be the expected passage of legislation sponsored by Colorado Republican Senator Cory Gardner and Massachusetts Democratic Senator Elizabeth Warren that would end the US ban on manufacturing, distributing and possessing marijuana in states that have legalized cannabis, Roth analyst Scott Fortune wrote in a recent research note.
“We believe the STATES Act is going to be considered the de-facto law to the legalization of cannabis in certain states and decriminalization in the US,” Fortune wrote, referring to the Strengthening the Tenth Amendment Through Entrusting States Act introduced last year. “In the lead-up to the STATES Act and eventual federal legalization, large investment capital will be allocated into the U.S. cannabis industry.”
The US cannabis industry’s eight biggest multistate operators, according to Roth, are Green Thumb Industries Inc (OTCMKTS:GTBIF) (CSE:GTII), MedMen Enterprises Inc (OTCMKTS:MMNFF) (CSE:MMEN), Curaleaf Holdings Inc (OTCMKTS: CURLF) (CSE:CURA), iAnthus Capital Holdings Inc (OTCMKTS:ITHUF) (CSE IAN), Acreage Holdings Inc (OTCMKTS:ACRGF) (CNSX:ACRG.U), Cresco Labs Inc (OTCMKTS:CRLBF) (CSE:CL), Harvest Health & Recreation Inc (OTCMKTS:HRVSF) (CNSX:HARV) and Columbia Care.
The $11 billion US cannabis market is expected to grow to $23.4 billion in 2022, Fortune wrote, citing data from BDS Analytics. Roth projects a fully federally legal US market will reach $59 billion to $78 billion over time.
Medical marijuana is legal in 33 US states and the District of Columbia while recreational use is legal in 10 states.
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