Cannabis Weekly Round-Up: New York Kicks Off Adult Sales
The state of New York opened its doors to recreational cannabis this past week.
Just before the end of 2022, the state of New York officially began adult-use cannabis sales.
This past week also brought year-end thoughts from a top analyst in the cannabis space. Despite the struggles of 2022, his comments indicate optimism about what’s ahead for the industry.
Keep reading to find out more cannabis highlights from the past five days.
New York state launches adult-use cannabis sales
Housing Works Cannabis Company opened its doors to New York customers looking for recreational cannabis products on Thursday (December 29) at 4:20 p.m. So far it is the state's only legal dispensary with recreational products.
The store, managed by a non-profit operator, is located in Manhattan’s East Village. Chris Alexander, executive director of New York’s office of cannabis management, made the first purchase at the dispensary.
“The legal cannabis market has the potential to be a major boon to New York’s economic recovery — creating new jobs, building wealth in historically underserved communities, and increasing state and local tax revenue,” New York City Mayor Eric Adams said.
New York is expected to play a critical role in the progress of the US cannabis sector in 2023. However, investment experts have told the Investing News Network that they expect a bumpy road ahead for this state market.
Top cannabis analyst shares commentary on year ahead
In a column for New Cannabis Ventures, Alan Brochstein, an analyst with 420 Investor, said he expects to see an improved path for the cannabis stock market in 2023 despite significant losses in 2022.
This past year left cannabis investors disappointed more often than not in the face of ongoing delays in meaningful US banking reform. Canadian operators have also dwindled in number on lowered expectations for the market.
Brochstein acknowledged that 2022's losses rose even further after December's last attempts at banking reform.
“We wouldn’t be surprised, though, to see some regulatory improvement. Investors should not bet on legalization soon, but it would be very nice to see some regulatory reform, including the elimination of 280E taxation,” he wrote.
The analyst said expectations rose too high for cannabis stocks after the 2020 elections, which led to a significant downturn.
“The optimism for federal regulatory improvement took prices much higher in early February 2021, but we are now down almost 90 (percent) since February 10, 2021,” he wrote. “This is too much in our view.”
Cannabis company news
- Flora Growth (NASDAQ:FLGC)closed its all-share acquisition deal for Franchise Global Health, an operator in the medical cannabis industry in Germany.
- High Tide (NASDAQ:HITI,TSXV:HITI)completed the acquisition of Jimmy’s Cannabis Shop BC, which will result in the firm adding two new stores to its portfolio.
- Avicanna (TSX:AVCN,OTCQX:AVCNF)announced that Lucas Nosiglia has stepped down as president of Avicanna LATAM and will take on a new undisclosed role at the end of January 2023.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.