Oklahoma is showing the rest of the U.S. how to run the medical cannabis industry. This southern U.S. state has surprised many analysts, quickly growing into one of the largest and fastest-growing medical cannabis markets in the country.
Oklahoma is on pace to do $1 billion in cannabis sales in 2021 and is reporting record sales in each of the last two months.
Here are some more details from mjbizdaily.com.
Already one of the largest and fastest-growing markets in the country, Oklahoma’s medical marijuana industry broke sales records in both April and May as consumers stocked up on products amid the coronavirus pandemic.
In April, sales in Oklahoma shot up to $61.5 million, a 21% increase from March.
Sales rose again in May to reach nearly $74 million – a monthly figure that far exceeds that of adult-use markets in Illinois, Massachusetts, Michigan and Nevada.
With more than $275 million in MMJ sales in 2020 to date, Oklahoma’s market could easily eclipse $700 million by the end of the year – in the same ballpark as more populous states such as Arizona and Florida.
Patients continued to enroll in Oklahoma’s medical cannabis program throughout the COVID-19 crisis – rising from roughly 272,000 in March to 297,000 by the end of May – though the recent monthly sales gains were driven by additional spending from existing patients.
Looking forward, I expect Oklahoma’s cannabis market to grow at a rapid pace.
Booming Medical Permit Approvals
The state continues to approve tens of thousands of new medical permits every month. This should keep the medical market growing for years.
But possibly more important, I see a high probability Oklahoma will legalize recreational cannabis in the next 24 months.
Legislators continue to submit new petitions to legalize recreational cannabis. Here are some more details from the Oklahoman.com.
Two initiative petitions filed Wednesday seek to legalize recreational marijuana and decriminalize the drug in Oklahoma.
The petitions also seek to enshrine in Oklahoma’s constitution many of the medical marijuana protections Oklahoma voters approved when they passed State Question 788 in 2018.
Filed by eight Oklahomans who work in Oklahoma’s medical marijuana industry, the petitions come on the heels of two other petitions seeking to overhaul the state’s marijuana laws.
I expect Oklahoma to legalize recreational cannabis in the next 24 months. If it happens, it would transform the state into a $2 – $3 billion cannabis market.
For investors looking to capitalize, I see two promising young cannabis companies that are establishing early leadership in Oklahoma.
#1 – Curaleaf Holdings (CSE:CURL, OTC:CURLF)
Curaleaf Holdings is one of the largest cannabis companies in the US. The company operates in 17 states with 57 dispensaries, 15 cultivation sites, and 24 processing sites. In addition, Curaleaf employs over 2,200 people across the U.S.
Curaleaf recently entered the Oklahoma market through a distribution deal with Mango Cannabis.
Shares of CULRF have recently seen a big rebound off the 52-week low. However, shares are still trading well below the 52-week high.
#2 – GrowGeneration Corp (NASDAQ:GRWG)
GrowGeneration Corp is a leading supplier of cannabis cultivation supplies and materials. The company currently owns and operates 27 retail locations across 10 U.S. states.
One of those states is Oklahoma, where Growgen owns and operates five retail locations. Oklahoma is an important market for Growgen – accounting for 15% of third-quarter revenue.
Growgen has been one of the top-performing cannabis stocks in the last twelve months. Shares just hit a new all-time high. Growgen looks a little overbought in the short run, but this stock has a lot of momentum right now.
This is a 5-year chart on Growgen.
The Big Picture on Oklahoma
Oklahoma’s medical cannabis market is booming. The formula is actually pretty simple… low taxes, low regulations, tons of permits, open markets and competition.
Curaleaf and Growgen are two early leaders in Oklahoma. Look for these two early industry leaders to capitalize on Oklahoma’s high growth potential in the next few years and beyond.
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