Eclipsing Prohibition: US Cannabis Industry Report Shows Growth Amid Regulatory Anticipation

In the latest report from Water Tower Research (WTR) published Monday, seasoned industry analyst Jesse Redmond provides a comprehensive overview of the most recent investment trends and legal shifts in the cannabis sector. 

Redmond’s analysis will doubtless trigger conversation at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16-17, where he will be a featured speaker, unveiling the future of cannabis investments and policy reform.

A Week Marked By ETF Volatility

The cannabis industry witnessed notable fluctuations the past week, with the US-based AdvisorShares Trust AdvisorShares Pure US Cannabis ETF MSOS seeing a modest gain of 1.10%, contrasting sharply with the global AdvisorShares Pure Cannabis ETF YOLO leap of 3.92%, as noted in WTR's report. This surge underscores a pivotal moment, primarily fueled by Canadian entities, marking a remarkable year-to-date uptrend of 49.70% for MSOS and 39.47% for YOLO.

AYR Wellness Leads With Strategic Catalysts

Looking back at last week’s triumphs, Redmond spotlights AYR Wellness AYRWF as a front-runner, boasting an 8.47% increase. CEO David Goubert’s discussion on Water Tower Research's podcast “Higher Exchanges” shed light on promising catalysts for 2024. With 80% of AYR’s operations in the medical sector, the company stands on the brink of expansion, particularly in states poised for adult-use transitions.

For the 54th time, I spent part of my Sunday recapping what happened in the cannabis-investing world. This week I wrote about $MSOS inflows, $AWYRF on Higher Exchanges, the Florida ballot, $CLSH NY launch, and the upcoming @BzCannabis conference. https://t.co/fRgCM9xNpm pic.twitter.com/wIOm3Nj96M

— Jesse Redmond (@jesseredmond) April 8, 2024

Florida’s Pivotal Role in Cannabis Expansion

Furthermore, Redmond's analysis addressed the pivotal Florida Supreme Court ruling permitting Amendment 3 on the fall ballot. This decision could potentially double the Sunshine State’s $2 billion medical cannabis market. With 135 million tourists last year, Florida’s transition to adult-use cannabis could catalyze significant sales, especially as neighboring states lack similar programs. Trulieve TCNNF leads the charge with a robust retail and cultivation footprint, essential in a market without wholesale trading.

CLS Holdings Ventures Into New York

Also, CLS Holdings CLSH‘ strategic move to introduce City Trees in New York’s recreational cannabis market heralds a significant expansion. Moreover, with BDSA forecasting a $1.3 billion market in 2024, CLS’s asset-light approach and partnership with Basix Mixtures spotlight a savvy entrance into one of the world’s most promising cannabis markets.

Industry On The Brink Of DEA Rescheduling?

Closing the report on a note of hope, Redmond delves into the growing speculation as the industry approaches the 4/20 holiday, with Senator Cory Booker hinting at possible DEA action. With the upcoming election and cannabis policies taking center stage, Redmond’s insights underscore a crucial period of historic potential for the cannabis industry.

Don’t miss the opportunity to hear Jesse Redmond, a leading voice in cannabis research. The Benzinga Cannabis Capital Conference is returning to Florida at a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.