2021 has been an interesting year for cannabis investors with lots of positive and negative news. According to New Cannabis Ventures, following were the five developments that cannabis investors hadn’t expected in 2021.
Slow implementation
New Jersey is taking much longer than expected in implementing legalisation of cannabis for adults after voters approved it last year in November. The state was expected to launch its licensing programme before the second half of 2021. Yet, three weeks before the year ends and investors are still awaiting a date.
Harvest acquisition
Harvest Health & Recreation was allowed to keep its Florida dispensaries but had to divest its license after TruLieve acquired it for $2.20 billion to become the largest legal cannabis company in the U.S. The transaction, as per New Cannabis Ventures, suggests regulators might turn more lenient over time, clearing way for faster consolidation in this space.
Price decline in California
One of the biggest surprises for cannabis investors this year was the price decline in California. Thankfully, though, the impact of it was limited to the California-based businesses only, many of which, however, ended up the worst-performing stocks in 2021.
States Reform Act
The States Reform Act by Nancy Mace approached the debate on Federal legalisation more pragmatically than the Democrats’ lower taxes, less FDA involvement proposal. Not many would have thought that a Republican representative would introduce legislation that could start the dialogue on regulating the cannabis space at the Federal level.
Hit to valuations
Lastly, cannabis companies reported strong financial results and maintained robust balance sheets this year. The outlook for the future also remained hawkish, yet the pull back in prices resulted in
