At the turn of the year, California officially became the most significant adult-use recreational cannabis market around, leaving pot stock investors salivating. Though some bumps have occurred along the way, especially some regulatory hurdles, the move to repeal prohibition has mostly been a success.
The market has created a massive rush for industry insiders and weed stock investors alike, and wading through the voluminous list of companies to find the right pick can be daunting. Here are the three best California weed stocks for smart investors:
A permanent fixture on the West Coast, Canadian royalty company CannaRoyalty Corp. (CSE:CRZ) is a solid pot stock play with diversified investments in royalty agreements, licensing deals, strategic partnerships, and a variety of equity stakes. Company CEO Marc Lustig said of California that “[it] is and will continue to be the most important cannabis market in the world.”
In fact, CannaRoyalty has gone all in on the West Coast, with nine different assets in the state, including their recent acquisitions of Bhang Vape and Alta Supplies. Bhang is one of the country’s leading vape cartridge manufacturers, while Alta Supply is a licensed distribution company headquartered in California. Other California assets include River (RVR), a complete stake in marijuana vape pen manufacturer GreenRockBotanical, and their 100 percent ownership of Soul Sugar Kitchen edibles.
When asked recently about the company’s focus on California, Lustig was blunt in his assessment of the cannabis landscape. “California as a medical market in 2017 did roughly [U.S.]$3 billion in legal revenues. To put that in perspective, for the Canadian market the which was medical all of 2017 and still is in 2018 the revenues may have been [CAD]$250 – $300 million,” said Lustig in an interview earlier this year.
He continued, “The California market is 10 to 15 times