Source: The Motley Fool

“The marijuana industry has been growing like a weed for years, but it brought something new to the table in 2018: legitimacy…The Empire State appears to be on the cusp of its own green rush..Although nothing is set in stone, the next state that could be on the docket to legalize recreational pot is New York…All of this money flowing into the Empire State’s pot industry has to go somewhere. The big question is “Where?”…the following three pot stocks could be long-term beneficiaries…One of the most logical beneficiaries of New York state legalizing adult-use marijuana would be vertically integrated dispensaries, such as MedMen Enterprises…MedMen is currently only operating a little over a dozen pot dispensaries in the U.S., albeit three of its open locations are in New York. However, MedMen’s presence in the Empire State is set to grow with its pending $682 million buyout of privately held PharmaCann…Another prime beneficiary in New York state would be real estate investment trust (REIT) Innovative Industrial Properties…Innovative Industrial Properties ended 2018 with 11 managed properties, all of which boasted an initial lease term of 15 to 20 years, a 1.5% management fee, and a rental increase of about 3.25% per year… two of them are located in New York…The legalization of recreational weed in what would likely be the second-largest market by annual sales in the U.S. would probably encourage Innovative Industrial Properties to seek out additional properties for lease in the Empire State…Last, but not least…Canopy Growth, the largest marijuana stock by market cap in the world…Recently, Canopy Growth was awarded a hemp production and processing license in New York…hemp and cannabis aren’t the same plant…However, if Canopy does invest heavily in New York as expected, and if the U.S. government does reschedule or remove cannabis from the list of controlled substances, then it would put Canopy in an advantageous position in the second-biggest pot market in the United States.”

 

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