Cannabis Stocks Surge With Ohio's Recreational Sales Kickoff And Strong Earnings Reports

Cannabis stocks surged following the beginning of recreational cannabis sales in Ohio on Tuesday, with significant earnings boosts reported by key industry players.

The start of legal adult-use cannabis sales in Ohio has provoked an impressive uptick in cannabis stocks. Notably, the AdvisorShares Pure Cannabis ETF YOLO rose by 8%, according to Market Watch. Furthermore, individual stocks such as Green Thumb Industries GTBIF and Trulieve Cannabis TCNNF swelled by 8.6% and 8.2% respectively following the state's issuance of dual-use certificates to 98 dispensaries. 

The upward trajectory in the market is also explained by robust earnings. Green Thumb, for example, reported an 11% jump in revenue, outperforming projections. Similarly, Trulieve reported the third consecutive quarter of revenue growth.

Other multi-state operators (MSOs) set to benefit from Ohio's green rush are Verano Holdings VRNOF and Curaleaf Holdings CURLF.

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MSOs Expand In Ohio's Cannabis Market

Cresco Labs CRLBF and Ascend Wellness Holdings AAWH are also capitalizing on Ohio's new regulatory environment. 

Cresco Labs has launched adult-use distribution, utilizing its extensive network of Sunnyside Dispensaries to cater to both medical and recreational customers. Charlie Bachtell, CEO of Cresco Labs, stated in a press release, "The acceptance of cannabis continues to grow with Ohio becoming the 24th state to launch an adult-use cannabis program. This is a tipping point with almost half of all states allowing adult-use cannabis and more adopting common-sense regulations every day." The company anticipates significant growth, with Ohio’s market potential projected to reach $2 billion, a substantial increase from 2023’s figures.

Similarly, Ascend Wellness is expanding its reach to non-medical customers, capitalizing on Ohio's updated cannabis policies. “We are well-positioned to serve both segments of the market, maintaining our commitment to our current medical patients while embracing new non-medical customers,” said John Hartmann, CEO of Ascend.

As the state adapts to this new era, the integration of adult-use sales is expected to propel the market, suggesting that in Ohio, green is the new gold.

Read Next:

• Cannabis Sales In U.S. Hit $32B In June: Key Drivers Behind All-Time Record Revealed

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