A few very fertile markets have emerged post-election that are sure to excite investors and out of state entrepreneurs. In some cases, these new laws tend to favor in-state residents and companies, so individual businesses will have to determine where to put their energies.
With a population of 39 million, the largest medical marijuana market in the nation and projections in the billions, California is the holy grail of the cannabis industry. Some think that it is so oversaturated already that they are hesitant to get into the market, but that is not so says CEO, Avis Bulbulyan, of Siva Enterprises. There are tough new regulations for the MMJ industry and many existing companies will not be able to meet those guidelines. "You're talking about securing a local permit for $100,000.00 (or more) and you're setting up shop in a major metro market". There is also no residency requirement in the new batch of MMJ regulations. And because it will take a few years to implement, out of state businesses will have time to jump in.
"Florida is probably the best state for expansion", says Kris Krane, president of 4Front Advisors. It has a massive population and no residency restrictions so it is 'particularly attractive to expansion-minded executives at cannabis companies in other states'. As a brand new MMJ market, there is no need to protect existing medical cannabis businesses and that makes Florida a great target for new investors. The market potential is huge.
MMJ businesses in existence already will have the first crack at recreational licenses before the market opens up to any out of state players.
These existing businesses also have a track record and therefore the ability to raise money from investors. Out of state investors can partner with any number of existing in state companies and get licensed. More obviously, Massachusetts is poised to service consumers all along the eastern seaboard so they are certainly being targeted as fertile ground for investors.