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California is ripe with opportunity for marijuana stocks. The West Coast cannabis industry is widely regarded as the largest in the world. Despite the state legalizing recreational cannabis back in 2016, California has a long history with cannabis starting back in 1996. 24 years ago, the state passed Prop 215 which is also known as the Compassionate Care Act. Prop 215 effectively allowed one of the first statewide cannabis markets to begin in the U.S. The act allowed for doctors to prescribe cannabis to patients who needed it. Those patients could then go to a nearby dispensary and purchase cannabis medicinally. After many years of success, the market grew substantially.
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By the time 2016 came around, the infrastructure for a recreational marijuana market was already in existence. Now, California is the largest cannabis market in the world as mentioned before. This is why so many people talk about the state when referring to the cannabis industry. With so much money flowing in and out of the cannabis industry within California, the state has become a hotbed for cannabis investments. Although most of the publicly traded pot stocks are based out of Canada, lots of them have ties with the market in California.
Since California became fully legal, the state has given out as many as 10,000 licenses for commercial cannabis businesses. The support from the state is very well-noted across the board. Of course, there are some major troubles with the industry. These growing pains are similar across most of the cannabis markets around the world. But, as we move forward these issues are being solved. For now, this pot stock is working hard to stake its claim in the Californian cannabis market.
A Pot Stock With Heavy Focus on the Californian Market
Origin House may be based out of Canada, but its operations are heavily based in the state of California. The company also has operations in six other states in the country, but it has stated that California holds the most potential for future growth for the company. CannaRoyalty works by providing debt financing to those who grow cannabis or are looking to produce cannabis-based products. The majority of the deals that it makes include a high royalty for any product sold that is included in the contract.
In addition to these royalties, the company has quite a few subsidiaries in California. This number totals 10 in the state, but it is looking to expand even further. Because of its diversity, the company has continued to attract success in any market that it works in. The company has the goal of being one of the largest cannabis distributors in all of California. Only time will tell if it can achieve all of its future growth plans.
An Acquisition Brings This Pot Stock Closer to California
Cresco Labs (CRLBF Stock Report) is a multi-state operator working out of the U.S. Although the company itself does not have a strong tie to California, its most recent acquisition could change that. The deal to buy Origin House was announced back in April of 2019. Origin House is one of the largest distributors of cannabis products in California.
In addition to this, Origin House has several in house brands that it sells to other retailers. The deal, which just received approval from the Ontario Superior Court of Justice, should make Cresco Labs a major player in California moving forward. Cresco Labs on its own is also pushing itself into the future with ties to six states around the nation outside of California. With so many future prospects, Cresco Labs is showing the potential that exists within the cannabis market.
California has a lot going on for its statewide cannabis industry. Right now, the state has a few speed bumps to get over before its industry can get to the next level. As the state works to make its market better, the hopes are that the aforementioned companies can continue to see success as promising pot stocks to watch.
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