MariMed (OTCBB: MRMD) Primed for 87% Gain on Delaware Marijuna Legalization Bill
Last week, the Delaware Senate approved two new bills designed to legalize cannabis for recreational purposes.
The last time a legalization bill got to the governor, it was vetoed, but it looks like this time there will be enough votes to override any potential veto.
If the bill passes, Delaware will become the 23rd state to legalize the recreational use of cannabis. And while the Blue Hen State’s population is fairly small, coming in at just over 1 million, it does already have a medical cannabis market in place.
Delaware’s medical marijuana market went live on July 1, 2011, but the market didn’t really start putting up significant numbers until around 2018 in terms of sales and medical card holders.
Check it out …
Estimates for medical cannabis sales in 2022 are around $46 million. But with a recreational component in place, this number could double within two years, and by 2030, exceed $200 million.
And here’s the rub …
There are only a few publicly-traded cannabis companies legally allowed to operate in the state.
With limited competition, cannabis companies already operational are in a very sweet position to profit from a new recreational market.
These include Columbia Care (OTCBB: CCHWF), which is actually expected to be acquired by Cresco Labs this summer, and MariMed (OTCBB: MRMD), which is arguably one of the most undervalued cannabis companies in the market, currently trading around $0.40 a share, but worth at least $0.75 a share, representing a potential gain of roughly 87%.
MariMed, by the way, currently has two operational dispensaries and one cultivation and processing facility in Delaware.
Both stocks, of course, should see a nice bump when this new recreational legalization bill is passed later this year. Although expect to see a more significant bump with MariMed as it’s currently trading at such a deep discount to its peers.
Until next time,
Pro Trader Today Research Team