Florida’s Potential Cannabis Legalization: Two Experts Share Their Take

The TDR Three Key Takeaways regarding Florida’s Potential Cannabis Legalization and Cannabis Industry: 

  • The polling in Florida indicates that 64% of Floridians support the legalization of adult-use cannabis, a figure that exceeds the critical 60% threshold.
  • Florida’s cannabis legalization campaign was spearheaded by Kim Rivers of Trulieve and supported by major operators like Verano and Sunburn.
  • The potential obstacles from Governor DeSantis in Florida could impact market sentiment and stock performance.

Yesterday on TDR’s Trade To Black Podcast, special guests Emily Paxhia and Dan Ahrens share their takes on Florida’s potential cannabis legalization. The polling data from Florida, indicating strong support for the legalization of adult-use cannabis, has generated considerable excitement and speculation within the cannabis industry. The polling in Florida indicates that 64% of Floridians support the legalization of adult-use cannabis, a figure that exceeds the critical 60% threshold required for such a measure to pass. However, the reliability of these polls remains a topic of concern. With only 1,028 expected voters surveyed and a margin of error of approximately 2.5%, the actual outcome remains uncertain. Dan Ahrens, from Advisor Shares, emphasizes the importance of continued efforts, stating, “It’s encouraging, it’s positive, but got to keep that foot on the gas of getting voters, getting out the vote, spreading the word, keeping it up.”

The potential legalization in Florida is a significant milestone with implications that extend beyond the state. Should the measure pass, Florida could become one of the largest cannabis markets globally, setting a precedent for other states. The campaign, spearheaded by Kim Rivers of Trulieve (CSE: TRUL, OTCQX: TCNNF) and supported by major operators like Verano (OTCQX: VRNOF, CA: VRNO) and Sunburn, underscores the industry’s unified front in advocating for favorable outcomes. Emily Paxia from Poseidon Asset Management highlights the critical nature of sustained advocacy, noting, “We have got to grab their attention and keep them focused on why this issue matters as a yes, starting probably in August.”

Paxia advises looking at operators who are well-positioned to thrive regardless of the election results, stating, “You want to look at operators who potentially are preparing for it to not pass, right? So it’s like, be excited about the upside, but be prepared for if it stays the same, which means it stays a medical program and who’s functioning well in that program.”

The cannabis sector has seen a resurgence of interest and has rekindled conversations among institutional investors, who are beginning to recognize the sector’s potential. However, significant structural changes, such as rescheduling and safe harbor provisions for banking, are necessary before substantial institutional money flows into the industry. Ahrens points out, “When we get it, is it going to be put into final rule and complete by November? And even if that rescheduling gets completed by November, we have to have guidance from the DOJ, from the attorney general’s office.”

Shifts in consumer habits, particularly among younger generations who favor cannabis over alcohol, further bolster the industry’s long-term growth prospects. Paxia observes a growing trend among consumers, stating, “Every day I hear people who I never would have thought contemplate consuming cannabis are talking about it.” This demographic trend, coupled with increasing acceptance of cannabis for wellness and medicinal purposes, suggests a broader and more diverse consumer base in the future.

Despite the positive momentum, the cannabis industry faces several challenges. Regulatory clarity, especially concerning banking and interstate commerce, remains a significant hurdle. Additionally, political developments, such as anticipated opposition from anti-legalization groups and potential obstacles from Governor DeSantis in Florida, could impact market sentiment and stock performance. Ahrens remarks, “No one should be surprised by some real curve balls that will come between now and November.”

Nevertheless, the industry’s resilience and adaptability are promising. Companies are becoming more sophisticated in their operations, and the supporting ecosystem is regaining momentum. The upcoming election and potential legislative changes could be the catalysts needed to propel the industry into its next phase of growth. Paxia underscores the industry’s long-term commitment, stating, “We have been in this for over 10 years. And so we’re in it for as long as it takes to get to that point where we have an industry escape velocity that I think we deserve.”

Want to be updated on Cannabis, AI, Small Cap, and Crypto? Subscribe to our Daily Baked in Newsletter!

You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More