Curaleaf's Boris Jordan Predicts Major Turnaround For Cannabis In 2024

Despite a challenging year for the cannabis sector in 2023, Boris Jordan, founder and executive chairman of Curaleaf Holdings Inc CURLF, expressed optimism for 2024. “2023 was a terrible year for the sector,” Jordan admitted, citing slower growth and regulatory hurdles.

Key Growth Catalysts In Sight

In a recent interview with CNBC, Jordan taked about the developments that could catalyze significant growth in the industry, such as New York’s move to adult use and Germany’s shift to medical cannabis. He anticipated Florida may also transition to adult-use marijuana next year.

Rescheduling Cannabis: A Financial Game-Changer

The potential rescheduling of cannabis in the U.S. from Schedule I to Schedule III was a focal point of discussion. Such a move would not only reduce the tax burden from an onerous 70% to standard rates but also unlock substantial financial resources for the sector. “Removing cannabis from the narcotics list… would obviously free up a tremendous amount of cash,” Jordan said.

Investment Dynamics: Overcoming Barriers

Jordan discussed the dynamics of institutional investment in the cannabis sector, identifying three primary barriers: the structural complexities of stock ownership, the need for sector re-education and the hesitant stance of investors awaiting federal action on rescheduling.

Curaleaf’s recent uplift to the Toronto Stock Exchange (TSX) and expected custodianship by major banks in early January represent significant strides in addressing these challenges.

Educating Investors And Awaiting Federal Action

Efforts to re-educate investors about the sector’s potential and demonstrate the industry’s improved financial health will be crucial according to Jordan. He emphasized the importance of federal action, suggesting that any significant movement on cannabis rescheduling is likely to occur by April next year. This anticipation is fueled by a pattern of federal decisions aligning with legislative timelines.

Looking Ahead: The Future of Cannabis in 2024

As the industry looks forward to 2024, Jordan’s optimism stems from potential federal rescheduling, increased investor awareness and burgeoning markets like New York and Florida, all stand to invigorate the cannabis industry beyond the trials faced in 2023. The coming months may prove pivotal in shaping the trajectory of the sector.