[Video] Cannabis Industry's 2024 Outlook: Expert Analysis From Highway 33 Capital Advisory

In a recent episode of Benzinga's Cannabis Insider podcast, Cam Horan, managing partner of Highway 33 Capital Advisory shared an optimistic outlook for the cannabis industry, particularly highlighting the potential for substantial growth and recovery in 2024. 

“We’re very excited about 2024,” Horan said, pointing to a gradual recovery of cannabis stocks and the anticipation of significant legal changes that could stimulate the market further.

A Shift Towards Recovery

Horan's enthusiasm is based on the private market and M&A activities that Highway 33 specializes in, as well as an insightful analysis of the public cannabis market. Despite the turbulence faced by publicly traded cannabis companies, with stock values plummeting by 91% since the spring of 2021, there are now signs of a rebound. 

“We think rescheduling is very likely,” Horan stated, suggesting that such a move could enhance liquidity in the market and spur public company growth. However, he was less optimistic about the SAFE Banking Act’s prospects, citing long-standing legislative challenges.

Analyzing Industry Challenges With Expertise

Drawing on his extensive background in the highly regulated healthcare sector, Horan sees many parallels between it and the cannabis industry. He highlighted specific challenges unique to cannabis, such as the 280e IRS tax code on company valuations and cash flow.

Horan, who sees scale and significant EBITDA as keys to success, says the cannabis industry is evolving towards traditional valuation metrics based on EBITDA – a trend that positions well-managed companies for lucrative exits or expansions.

Advising Preparation For A Changing Landscape

Notably, Horan identified nascent states like New Jersey, Missouri, Illinois and Ohio as having high growth potential. He predicts that these less mature markets, alongside smaller to mid-sized multi-state operators (MSOs), will likely see the most significant benefits from rescheduling and increased investment activity.

An Optimistic Outlook For Investors And Entrepreneurs

Horan's advice to cannabis investors and entrepreneurs is clear: now is an opportune time to engage with the market. “I’m accumulating,” he revealed, underscoring his belief in the sector’s imminent growth.

“This is an incredible time to get into the market and execute,” concluded Highway 33‘s managing partner, stressing the potential for both buyers and sellers in this rapidly evolving landscape.

To gain a detailed understanding and thorough analysis of the cannabis industry’s future direction, watch the complete episode of Benzinga’s Cannabis Insider on YouTube.