Source: Cresco Labs Inc.
  • Several cannabis stocks had a positive reaction after Ohio’s vote to approve a ballot measure that legalizes recreational marijuana
  • Red White & Bloom Brands Inc. (CSE:RWB) announced its entry into Ohio after news of the vote through the execution of a licensing arrangement with a first mover, vertically integrated Ohio distributor
  • Cresco Labs Inc. (CSE:CL) operates a 4,600 square metre cultivation and processing facility in Yellow Springs that distributes its cannabis brands to approximately 60 per cent of Ohio’s 111 operating medical dispensaries
  • Vext Science Inc. (CSE: VEXT) CEO Eric Offenberger called the vote a key milestone not just for his company, but the entire industry

Several cannabis stocks had a positive reaction after Ohio’s vote to approve a ballot measure that legalizes recreational marijuana.

In less than a month, people aged 21 and over in the state will be able to use, grow or sell cannabis under a regulation-and-tax program.

Red White & Bloom Brands Inc. (CSE:RWB) stock ended more than 11 per cent higher to close at $0.05 per share.

The Toronto-based multi-state cannabis operator announced its entry into Ohio after news of the vote through the execution of a licensing arrangement with a first mover, vertically integrated Ohio distributor.

“Ohio represents another pivotal entry point for RWB, allowing us to leverage the continually strengthening brand equity of Platinum, which has consistently excelled in the vape categories in neighboring Michigan,” RWB’s president, Colby De Zen, said in a news release. “RWB remains focused on ensuring that each of its expansion efforts are reinforced by well-established licensing partners who recognize the value of premium Platinum cannabis products. These partners contribute to enhancing the consumer experience and also possess the commercial capacity to meet the growing demand for our esteemed Platinum product line, supported by RWB’s targeted marketing efforts.”

The team at Cresco Labs Inc. (CSE:CL), another multi-state cannabis operator, gave its support to the ballot’s outcome.

“The total U.S. cannabis market is estimated to exceed $100 billion in sales a year, with less than 30 per cent of that coming from state-regulated programs,” Cresco’s CEO Charles Bachtell said in the statement. “As states like Ohio – the seventh most populous state with nearly 12 million residents – pass and develop adult-use programs with appropriate cannabis laws, it will continue to help bring consumers into the regulated, safety-focused cannabis industry. Even with regulated channels contributing to less than a third of the total U.S. cannabis consumption, the regulated industry still generated over $4 billion in tax revenue for states last year.”

Cresco Labs operates a 4,600 square metre cultivation and processing facility in Yellow Springs that distributes its brands to approximately 60 per cent of Ohio’s 111 operating medical dispensaries. Cresco closed trading at C$1.67 per share.

Another company already operating in the state, Vext Science Inc. (CSE: VEXT) also applauded the vote.

Vext CEO Eric Offenberger called the vote a key milestone not just for his company, but the entire industry.

“As the seventh most populous state in the country, with nearly 12 million total residents and a successful medical cannabis program, Ohio has a strong foundation to establish itself into a robust adult-use market. The results of this vote will ensure that Ohioans will have access to quality, regulated cannabis products and the state will also benefit from the jobs, tax revenue and related opportunities that an adult-use industry promotes,” he said in a media release.

Vext owns and operates cultivation facilities, fully built-out manufacturing facilities, and dispensaries in Ohio and Arizona. 

Vext ended the day more than 3 per cent higher to trade at $0.30 per share.

Ohio is the 24th state to embrace legalization. Medical marijuana has been legal since 2016.

Cannabis news outlet, MJBiz Daily said that according to projections, adult-use sales in Ohio are expected to reach US$1.5 billion to US$2 billion in the first year and total US$3.5 billion to US$4 billion by the fourth year.

To keep up with the latest news in the cannabis market, visit Stockhouse’s Trending Cannabis News page.

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