Multi-State Business Operators in the Rise
US states are taking big steps forward to legalize cannabis on an individual basis. This legalization model has seen the rise of “multi-state operators,” which are cannabis operators with the funds and resources to compete in an increasingly challenging regulatory environment across many US states. Currently, the three biggest multi-state operators are: Green Thumb Industries (CNSX: GTII), Acreage Holdings (CNSX: ACRG.U), and MedMen Enterprises (CSE: MMEN). Given that a unified federal legalization is unlikely in the next few years, it is highly likely that the companies with the capital to operate in multiple states will continue to grow and absorb smaller competitors, continuing to consolidate their market position.
Wall Street Is Making Moves
While the cannabis legalization is still an open question mark at the federal level in the US, savvy investors are making big moves on legalized cannabis.
Encouraged by Canada’s 2018 legalization of recreational cannabis, companies like Black Rock, Navy Capital, Ackrell Capital, and Canaccord Genuity Group Inc. are investing billions of dollars in cannabis. Over the last five years, Canaccord alone has acted as an underwriter or lead bookrunner for over a dozen different leading cannabis companies; including Canopy Growth, MedMen Enterprise, Acreage Holdings. It is anticipated that this trend will continue incessantly.
Manufacturing Infrastructures Are Booming
As seen in recent years, cannabis consumers are becoming more sophisticated, so the products must also evolve.
There is a growing need for companies that can manufacture vape products, infused products, pre-rolls, etc… so multi-state business operators are pouring big money in building up their infrastructure. In the state of California alone, there are almost 600 cannabis manufacturers. As there is a growing premium on sophisticated cannabis brand, expect to see similar growth in the value of cannabis manufacturers.
Consumption Events on the Rise
Social events, where attendees can consume cannabis, are on the rise. While consuming cannabis in public is not permitted in most states, some states like California do allow for special permits for consumption-based events.
The Cannabis Cup, Hall of Flowers , The Emerald Cup, and by High Times are perfect examples. Attendees can purchase and consume cannabis on-site in specially designated areas. As the concerns around cannabis consumption are in decline, it is highly likely that consumption-based events will become very popular in North America.
Source: https://www.forbes.com/sites/warrenbobrow/2019/09/29/2019-cannabis-trendswhat-is-hot-in-the-industry/#17e8ef34422e