Though Canada may have beaten the US to fully legalizing recreational use of Marijuana, the US is still a close contender when it comes to the cannabis market. With a total of 136 cannabis related securities listed on the OTC Markets Group Inc, the US is only 8 behind the Canadian exchanges with a total of 144. Despite not being fully legal in the US, the 136 companies have a total market cap of USD 16 billion, compared to the CAD 57 billion of the companies listed in Canada. Furthermore, according to Bloomberg, a research by the OTC showed a 35% increase in daily trading volume for Canadian exchange-listed companies after joining OTCQX.
The debate on the legalization of cannabis reached the ballot this year as voters of Michigan, North Dakota and Missouri allowed voters to decide whether they wanted to push forward with the recreational or medical use of cannabis. Voters in Michigan voted in favor of legalizing adult use of cannabis; by 2025 the state is projected to be the 5th largest cannabis market as New Frontier Data projects annual sales of over USD 1 billion by 2025. Moreover, with legalization, the cannabis market is projected to create upwards of 25,000 jobs by 2025.
With the Democrats now in control of the House, Cowen analyst Vivien Azer, expects cannabis legalization bills to have a better chance of passing. Likewise, the midterm election results caused cannabis stock gains as Tilray (NASDAQ: TLRY) and Cronos (NASDAQ: CRON) ended Wednesday the 7th trading with gains of 30.64% and 8.40% respectively. With the possibility of cannabis becoming fully legal rising, Cowen & Co project the US cannabis market to surpass $70 billion by 2030.
Capitalizing on growing American sentiment towards the cannabis market, CLS Holdings USA, Inc. (OTCQB: CLSH) is a cannabis producer and retailer through their Nevada based subsidiary cannabis dispensary, Oasis Cannabis. The firm has continued their expansion model with a USD 5 million loan to In Good Health and a private placement deal worth USD 5.9 million lead by Navy Capital; a New York based cannabis focused institutional fund. With Massachusetts’s Cannabis Control Commission (CCC) set to begin issuing cannabis licenses to retail outlets, the state offers a great opportunity for American Cannabis producers and retailers. This year, the support for legalized cannabis grew as states such as Utah and Missouri voted on Tuesday to approve medical use of marijuana. Though North Dakota voters did not favor a bill which will allow recreational marijuana, 33 states now allow the use of some form of marijuana.