Cannabis Report

Cannabis Report: Florida Governor to Broaden Marijuana Market, Rhode Island Considers Legalization

Cannabis Report: Florida Governor to Broaden Marijuana Market, Rhode Island Considers Legalization
By Allison Brickell
Date January 17, 2019
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For our first Cannabis Report of 2019, Senior Managing Editor Vin Narayanan is covering some promising news.

First, our portfolio recommendation Canopy Growth Corporation (NYSE: CGC) is off to a strong start. It began the year around $27 and now trades around $42. The company recently announced a $100 million to $150 million investment in hemp and has obtained licenses to grow the product in New York. Hemp is going to be an incredibly big industry, and the news was received positively by markets, with Canopy gaining 11% the day it was announced. Overall, we’re happy with its growth prospects both in Canada and abroad.

Back in September, we wrote about Innovative Industrial Properties (NYSE: IIPR), a cannabis REIT (real estate investment trust). This month, a new cannabis REIT is launching: Treehouse, which completed its first round of capital fundraising last week. Treehouse has acquired assets from MedMen, one of the most well-run cannabis companies out there. We don’t know yet how well the Treehouse REIT will perform, but we’ll be keeping an eye on it.

On the medical marijuana front, changes are brewing in Florida. Despite the fact that more than 70% of the state voted to approve medical marijuana in 2016, the government had been obstructing progress with smoking bans, insanely high application fees for medical marijuana suppliers and difficult processes for dispensaries. But the Sunshine State has a new governor, and he’s vowing to change all that.

Finally, Rhode Island, surrounded by states that have legalized marijuana in some way, is considering doing the same. After all, why should it lose out on tax revenue?

Good investing,

Allison Brickell
Assistant Managing Editor, First Stage Investor

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