Investors and cannabis companies are jockeying for a stake in Arizona’s $750 million-plus marijuana market in advance of a likely adult-use legalization ballot initiative in November.

If, as expected, residents vote to legalize adult use, the recreational program could launch by next spring.

The rec initiative – which favors existing medical marijuana operators – is creating enormous interest among investors despite the recession and tight capital markets, according to industry insiders.

While the election sets up the prospect of multimillion-dollar medical marijuana license sales, it’s unclear how many businesses will decide to cash out given that the initiative gives existing operators the inside track to what is expected to be a massive rec opportunity.

“We will have adult use, the marketplace will double in size and an Arizona license is going to be one of the best investments” going, said Demitri Downing, founder of the Arizona Marijuana Industry Trade Association (MITA) and a cannabis consultant.

A business’ ability to qualify for an adult-use license immediately increases the value of an operation by 30%-80% because of the additional market opportunities, Downing estimated.

Arizona cannabis attorney Janet Jackim said marijuana companies and investors, both in-state and from other regions, “are trying to gobble up any licenses they can.”

In fact, she said she already is working on several potential transactions.

Continue Reading at Marijuana Business Daily