Currently, The MORE Act Passes the House Floor Vote

Investors who follow the cannabis industry were likely watching the floor vote in the House of Representatives during Friday’s session. The Marijuana Opportunity Reinvestment and Expungement Act or the MORE Act was being voted on as America once again debated the legislation of federal legalization of cannabis products. For those who were not watching, the vote passed with bipartisan support and added support from House Speaker, Nancy Pelosi.

It was a pivotal first step in legalizing cannabis and expunging the criminal charges of those currently serving jail time for the possession of marijuana. While the passing of the vote through the House was widely expected, it is the Senate vote that will pose the biggest challenge once again. For those that remember, the Act passed the House vote back in 2020 as well but stalled in the Senate. The federal legalization of cannabis was highly anticipated when the Democrats and President Biden took office. Unfortunately, due to the COVID-19 pandemic, cannabis was mostly pushed to the back burner.

So what does this mean for investors? The cannabis industry has been volatile to say the least. Most of the major stocks in the sector tumbled this week despite the passing of the House floor vote. While you would think this would be a positive catalyst for stocks, investors likely still remember the Senate voting it down in 2020. Still, it seems inevitable that cannabis will be federally legalized sooner rather than later. If you believe this to be true, cannabis stocks might just be trading at a discount right now. Here are three to add to your watchlist!

Trulieve Cannabis Corp (OTC:TCNNF)

Trulieve Cannabis is a multi-state, vertically integrated cannabis company that was established in 2015. It is one of the leading domestic cannabis suppliers that cultivate crops and has a retail presence as well with over 161 dispensaries across the country. As of 2022, Trulieve has 3.5 million square feet of cultivated land and processing in eleven different states including California, Florida, Nevada, Colorado, and Arizona. Florida is Trulieve’s keystone market with over 110 medical dispensaries and sees its products sold in over 400 dispensaries across the state. Whenever federal legalization comes, expect Trulieve to be one of the national leaders in the industry.

GrowGeneration Corp (NASDAQ:GRWG)

GrowGeneration isn’t a brand that is immediately recognizable unless you closely follow the cannabis industry. It is a pick and shovel way to invest in cannabis and is a company that has a high ceiling if the US cannabis industry ever took off. GrowGeneration is a specialty retailer that focuses on supplies for hydroponics and organic gardening. It already has 63 retail locations in states that have legalized cannabis on the state level. GrowGeneration is also looking to add up to 20 more locations this year alone. While most investors will target cultivators, it might be prudent to invest in the company that provides the supplies to allow cannabis to grow in the first place.

Endexx (OTC:EDXC)

Another way to pivot from cannabis growers is to invest in the rapidly growing CBD industry. Endexx has been in the CBD game before it went mainstream. Unlike other emerging cannabis brands, Endexx is already on store shelves with several different product lines. You can find their goods at nationwide chains like Walgreens or CVS, in addition to multiple different online sites. Perhaps most bullish for Endexx is its foray into pet and veterinary CBD treatments. While the industry is small, it is anticipated to grow at a CAGR of nearly 60% through 2028, with annual revenues of over $5 billion. CBD is gaining popularity and usage amongst consumers and vets because of its lower cost compared to prescription medications, surgeries, or other veterinary procedures.

Domestic Cannabis Stocks Could Skyrocket

There are dozens of different cannabis companies to invest in right now and when legalization comes, there will be a lot of potential winners in the space. While many investors will flock to the big names like Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), or Aurora Cannabis (NASDAQ:ACB), it is these smaller names that will likely have the most to gain. All three of these stocks we discussed have a different role in the cannabis market. Keep an eye on Endexx though as the company can survive even if cannabis legalization is shot down again. CBD is accepted in more states because it does not have THC which is the psychoactive ingredient in marijuana. It is also accepted internationally, including across Europe and in the historically drug conservative markets in Asia, like China and Japan.

*Legal Disclaimer

This industry article was published for information purposes and paid for by Strategic Innovations Inc. Although the Companies mentioned have not endorsed or paid directly for this article, Strategic Innovations is paid by these companies for social media management; the management includes such articles for informational purposes. And at no time is this endorsement to buy or sell any stock.

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