With all eyes on states like New Jersey, which just passed referendums to legalize cannabis, companies are now focusing on their next big targets. According to a report from Marijuana Business Daily, multistate cannabis operator Jushi Holdings plans to invest $50 million tin Pennsylvania to expand its cultivation and processing facility. The word is that the company needs to meet increasing market demand.
As per the report from Marijuana Business Daily, “The Florida-based MSO plans to expand the facility in Scranton from 90,000 square feet to more than 160,000 square feet, with the first phase to come online in mid-2021 and the entire project completed by the second quarter of 2022.”
The expansion will be quite large, with canopy space set to grow an additional 98,000 square feet.
The project will be partially-funded by Innovative Industrial Properties via an amended lease agreement. It will create more than 100 jobs, though, according to Marijuana Business Daily it is “subject to certain milestones, approvals and permits.”
“The medical cannabis market in Pennsylvania is rapidly growing and with our products in high demand, this investment will significantly expand our cultivation capacity and market share,” Jushi CEO and Chair Jim Cacioppo said in a statement.
Pot stocks looking up after Biden win
Although Joe Biden has promised not to legalize cannabis, as he prefers to go the decriminalization route, experts agree that things are looking up for pot stocks for the next four years.
According to CNBC, “pot stocks have been hot following Election Day, with big names in the space gaining on the prospects of a Joe Biden presidency. Exchange-traded funds tracking the space have also soared over that time frame, with one of the biggest winners being the Amplify Seymour Cannabis ETF (CNBS), up nearly 23 percent.”
As per Tim Seymour, founder and chief investment officer of Seymour Asset Management and the portfolio manager of CNBS, Biden’s win was also a win for the cannabis industry in several different ways.
“The dynamics in the cannabis sector are really extraordinary,” he told CNBC’s “ETF Edge” lin an interview last week. “We saw five new states vote through either adult or medical markets. The top-line growth story is 30-40 percent. ... This is CPG, this is very sophisticated and the country’s in favor.”
Seymour believes that because pot is being used to bolster local state economies, the terrible bear market the industry has been experiencing could soon turn around.
“Part of the trade ... was about being defensive. It was about finding the best balance sheets. It was about finding the companies that actually hadn’t levered their balance sheet or put a bunch of dilutive equity warrants in their structure. So, that’s really what we’re doing at CNBS,” Seymour said to CNBC.