California's Cannabis Market Could Eclipse All of Canada
Canadian cannabis businesses may already be benefitting from nationwide legalization, but California's marijuana market could still come out on top. As the fifth-largest economy in the world by gross domestic product, California cannabis sales could easily eclipse all of Canada's sales if the markets are ever equally regulated.
The sale of adult-use marijuana in California is expected to surpass $5 billion next year, once the market is fully-grown. This leads some experts to give California a fighting chance at surpassing Canada in cannabis sales even without official approval from the US government.
One major sign that California's cannabis market is poised for success is the rise of California-focused marijuana stocks. A few cannabis companies with ties to the state are gaining the attention of investors on Nasdaq, including CannaRoyalty, MedMen Enterprises, and Sunniva.
At the top of the list is Canna Royalty, which currently operates in Canada and six US states. The company stays mostly on the outskirts of the business as a provider of equity or debt financing for growers. However, Canna Royalty announced plans to become a leading marijuana distributor in California earlier this year.
MedMen made a name for itself when it posted the largest initial public offering of any US-based cannabis company. Its business is high-end dispensaries, of which they operate eight in Southern California, four in Nevada, and four in New York.
Sunniva, which boasts a massive 498,000-square-foot campus in California, plans to cash in on the extract market in the state. Last week the company announced plans to separate their Canadian and California assets into two businesses.