Michigan voters legalize recreational marijuana use, spurring pot-stock rally - The Cannifornian

Wednesday, Nov 7, 2018

The legal U.S. cannabis market just got a little greener.

In midterm elections that saw Democrats gain control of the House and reaffirmed Republican control of the Senate, more states also voted to legalize marijuana. The outcome will help expand a U.S. pot market that could be worth $75 billion by 2030, according to an estimate from Cowen & Co. Pot stocks, led by Tilray Inc., surged on the news.

Michigan became the 10th U.S. state — and first in the Midwest — to legalize recreational pot. Sales there, estimated to start in 2020, could grow to as much as $1.7 billion in the coming years, according to the trade publication Marijuana Business Daily. The total legal U.S. market is expected to hit about $11 billion in sales in 2018.

With Michigan voting to legalize adult use, neighbors like Ohio and Illinois could soon follow suit to help build a market in that region, according to Ken Shea, an analyst at Bloomberg Intelligence.

“Michigan can act as an anchor,” he said. “You could get a cluster effect.”