Jun 8, 2022
Although New Mexico is not one of the first markets we think of when it comes to the cannabis industry in the United States (US), recreational cannabis sales have been steadily increasing since retailers were allowed to start selling it in March.
According to New Mexico’s Cannabis Control Division (CCD), $22 million of recreational cannabis products were sold in April. In May, the CCD said the level of recreational cannabis sales was around $21 million and we are impressed with the amount of revenue generated in the first two months since legalization.
We consider the percentage of cannabis sales that are recreational to be a key metric when analyzing any cannabis market. According to the data from New Mexico’s CCD, the percentage of cannabis sales that were recreational increased from April to May. The agency said approx. half of cannabis sales in April were recreational. In May, the percentage increased to 55% and we believe our readers should be aware of the emerging market.
After New Mexico’s recreational cannabis market opened, we conducted analysis on the companies that are levered to the state. Over the next few years, we will continue to closely monitor how these operators benefit from the growth of New Mexico’s recreational cannabis market and have highlighted such an operator.
The company, Schwazze (MDCL) is levered to several burgeoning medical and recreational cannabis markets in the US. Initially, the US multi-state-operator (MSO) was laser focused on Colorado’s cannabis industry and we are bullish on how the story has advanced since 2020.
Over the next year, we expect Schwazze to benefit from the growth of New Mexico’s recreational cannabis market and are of the opinion it could be a leading operator in the state. Based on the initial performance of New Mexico’s recreational cannabis industry, we would not be surprised to see Schwazze acquired by a larger US operator and will continue to follow the story.
https://technical420.com/cannabis-article/new-mexico-is-an-emerging-cannabis-market-to-keep-a-close-eye-on/#
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