Denver is set to become the first city in the US to legalize social use of marijuana in public establishments. As it stands, Cannabis cafes are on the verge of sprouting up following the approval of initiative 300 by the public. Cannabis stock led by THC Biomed Intl Lt Com (OTCMKTS:THCBF), Aurora Cannabis In Com (OTCMKTS:ACBFF) and Supreme Pharmaceut Com (OTCMKTS:SPRWF) have since skyrocketed in the market as the same is only expected to expand the target market for their products.
Social Use of Marijuana
Legalization of social use of marijuana in Denver is not the only news that is fueling investor interest on cannabis stock in the market. Eight new states have already legalized the federally prohibited plant paving the way for the expansion of the $6 billion a year business to as much as $20 billion 2020.
“This is a victory for cannabis consumers who, like alcohol consumers, simply want the option to enjoy cannabis in social settings,” said Kayvan Khalatbari, a Denver businessman.
Businesses in the Denver area could start opening up their doors for pot users as early as January as other states initiate similar plans. Sprouting up of pot-friendly establishments in addition to pot dispensaries is one of the things that has led to an increase in investor interest in the likes of Aurora Cannabis, THC Biomed and Supreme Pharmac in the market.
Hurdles At Hand
While talk of pot restaurants is good news for the industry, there is growing concern that the next administration could significantly cripple growth given its purported hard stance of marijuana use. Concerns that Rudy Giuliani could be appointed as the attorney general is already evoking concerns among investors who fear his hard stance on marijuana laws could have detrimental impact.
Concerns over the kind of policy that could come into play with the next administration have already led to unusual levels of volatility in the industry with some stocks tanking in huge volume as investors maintain a cautious approach. Amidst the concerns, the likes of THC Biomed Intl Lt Com (OTCMKTS:THCBF), Aurora Cannabis In Com (OTCMKTS: ACBFF) and Supreme Pharmaceut Com (OTCMKTS:SPRWF) awaiting to see for how long.