After New Jersey voters agreed to legalize marijuana inside its borders final week, it is solely a matter of time earlier than neighboring states do the identical, GrowGeneration CEO Darren Lampert instructed CNBC’s Jim Cramer Friday.
“We believe the rest of the East Coast will follow suit [and] legalize very soon,” he mentioned in a “Mad Money” interview, calling the second a “paradigm shift.”
New Jersey was not alone in approving measures on Election Day supposed to open up the leisure marijuana market inside their boundaries. Arizona, Montana and South Dakota additionally handed proposals to finish prohibition. The state of Mississippi additionally moved to legalize the plant for medical functions.
GrowGeneration, which provides instruments for gardening, expects to learn from the increasing weed business. Lampert mentioned the Denver, Colorado-based firm arrange shot within the state of Arizona earlier than the election in hopes of capitalizing on the potential $2 billion market there. The firm sells instruments used within the cultivation of marijuana.
“The election was a big victory for the cannabis industry and GrowGeneration,” he mentioned. “It’s invigorating to see cannabis initiatives pass in five states. The green sweep.”
The firm particularly has its eyes set on the East Coast and hopes the passing of marijuana in New Jersey will trigger the dominos to fall in surrounding states, resulting in extra efforts to legalize hashish a minimum of on the state degree.
The Garden State is the primary within the mid-Atlantic area to legalize marijuana and plans to tax gross sales at 6.625%. Local governments may also have rights to tack on further charges.
While New York has tried to legalize marijuana by way of the state legislature, these efforts have failed. It would have been simply the second state after Illinois to legalize hashish by way of that route.
Meanwhile, New York Gov. Andrew Cuomo has mentioned he’s in favor of legalization and in Pennsylvania, help amongst voters has grown.
Lampert mentioned he additionally expects legalization is within the pipeline in Connecticut and Rhode Island.
“Jersey is another exciting market, [the] gateway to the North East,” he mentioned, including that the corporate is scouting places to open up shot within the state within the spring. “We believe the rest of the East Coast will follow suit legalize very soon.”
GrowGeneration shares rallied 5% on Friday to a brand new closing excessive of $25.52. The inventory has surged virtually 40% increased because the Nov. three election.