Update 3:50pm: Adds Bernstein comment
Voters in Maryland and Missouri approved ballot initiatives that would allow for the recreational use of marijuana. However, similar initiatives in Arkansas, North Dakota, and South Dakota were defeated.
In Maryland, ~66% of voters voted in favor of a constitutional amendment to legalize adult use and possession of marijuana.
The tally in Missouri in favor of adult use legalization was 53%.
In Maryland, adults can possess cannabis on July 1, 2023, though sales won't occur until 2024 at the earliest due to the need to set up a regulatory framework for dispensaries. In Missouri, adults can possess marijuana starting Dec. 8 though sales through dispensaries won't begin until Feb. 8, 2023.
In Arkansas, just ~44% were in favor of legalization, so the measure there failed.
In North Dakota, only 45% of votes were in favor. In South Dakota, the tally was 47% in favor.
In a note, Bernstein said that legalization in Maryland and Missouri will add $3B to its US cannabis total addressable market estimate, bringing it to $59B by 2027, without federal legalization.
Most cannabis multi-state operators are up slightly in Wednesday morning trading.
MSOs: Cresco Labs (OTCQX:CRLBF); Columbia Care (OTCQX:CCHWF); Trulieve Cannabis (OTCQX:TCNNF); Green Thumb Industries (OTCQX:GTBIF); Curaleaf Holdings (OTCPK:CURLF); MedMen Enterprises (OTCQB:MMNFF); Acreage Holdings (OTCQX:ACRHF); Ayr Wellness (OTCQX:AYRWF); Verano Holdings (OTCQX:VRNOF); and Jushi Holdings (OTCQX:JUSHF).
Cannabis-related ETFs: AdvisorShares Pure Cannabis ETF (YOLO), Amplify Seymour Cannabis ETF (CNBS), ETFMG Alternative Harvest ETF (NYSEARCA:MJ), AdvisorShares Pure US Cannabis ETF (MSOS), and Global X Cannabis ETF (POTX).
Including Maryland and Missouri, cannabis is legal or soon will be for adult use in 21 states, plus the District of Columbia.