Colorado, the first in the hash market, and market stability can mean fewer opportunities for significant yields.
But Colorado hashish is booming.
The state saw its sales increase to 26% in 2020 for a total of $2. 2 billion, according to BDSA data.
BDSA expects Colorado sales to succeed at $2. 7 billion through 2026.
Colorado hash market leaders told Benzinga that the state offers investors access to a mature market, established brands and strong performance.
The Centennial State legalized marijuana in 2012.
“Colorado is og’s market in terms of usage,” said Nancy Whiteman, CEO of Wana Brands, which operates in 12 states.
The state’s open license design is an advantage, he said, noting that limits only exist in some municipalities.
“Colorado has already gone through a series of upward cycles that early-stage markets are now released. “
Jessica Billingsley, CEO of Akerna Corp (NASDAQ: KERN), also spoke about the mature market.
“We have smart benchmarks for identifying hashish corporations that behave well with troubled corporations,” Billingsley said, adding that several brands had already retained the loyalty of their customers.
Rich Batenburg, chairman of clear cannabis inc. ‘s board of directors, agrees: for him, Colorado’s mature market is a promotional point.
Established markets produce lower yields than more emerging markets.
Mass expansion figures are unlikely to occur in a market with land and distribution established as Colorado, Batenburg said.
“We’re already in consolidation mode here in Colorado,” he said, adding that new markets like New Jersey and Missouri are bringing more enthusiasm now.
Whiteman also went into additional details, noting that Colorado has already noticed that larger brands like Native Roots, LivWell and several others get greater market opportunities through mergers and acquisitions that it considered quite expensive.
Concrete example: In September 2020, Columbia Care Inc (OTCQX: CCHWF) entered the market with the acquisition of The Green Solution.
Investors want to wonder which corporations can win “enough critical mass to move their whim in any of Colorado,” Whiteman said.
Beyond the imminent presence of major brands, Akerna’s Billingsley said wholesale costs in Colorado can simply be volatile.
Costs depend on the amount of fabrics that come to market from crops compared to indoor and greenhouse operations, he said.
For Billingsley, making an investment and trading hashish carries its dangers and benefits.
Colorado’s and high-capitalization stocks are expected to grow consistently,” he said.
“Or you can take on the threat of emerging hash markets and emerging expansion actions with less secure but potentially superior long-term rewards. “