The best thing that happened in the year 2016 was the opening of opportunities for marijuana industry. It has enhanced the profitability of cannabis penny stocks.
During the 2016 presidential elections, several states had voted for legalization of cannabis to a varying degree. Of the several states that voted for cannabis, the vote from state of California had the deciding vote. With nearly 12 percent of the total American population residing in California, the state had the major win in increased social acceptance.
California has voted for complete recreational marijuana usage that enhanced the marijuana stocks. Moreover, the year 2018 has seen considerable progress in the marijuana industry, as Californians would no longer have to carry medical green cards for purchasing marijuana as herbal solution. It would be pertinent to mention here that regulations would vary from one city to another. Despite the regulatory environment has loosened substantially, the legal stipulations are still carrying in different states.
Apart from being socially accepted, there has been undeniable financial result coming from the botany industry. The cannabis industry became a billion dollar industry in the Colorado state in 2015. It had officially crossed the mark in the year 2016. However, in the year 2017, green businesses earned more than 1.5 billion dollars in revenue.
It has been great news for marijuana stocks, as a majority of states look forward to reporting a budget deficit, the present government would not like to slow down economic progress of the nation.
However, the federal government would be required to reconsider its stance on marijuana. It would greatly have considerable impact on the top cannabis penny stock.
You would come across eight states that have legalized marijuana for recreational usage. It would be states of Oregon, Nevada, Maine, Massachusetts, Alaska, Colorado, California and Washington. In addition, only a handful of states had agreed to regulated usage of cannabis for medical purposes.
It would be pertinent to mention here that combined population of all states mentioned has been 65 million. It implies there have been 65 million Americans residing in states and having some kind of cannabis legalization.
Apart from the available benefits of higher value of the marijuana stocks recently, several states also expected to gain tax revenue from the industry. For example, in the state of Colorado, the government has been said to have collected more than 500 million USD in tax revenue from the cannabis industry since the year 2014.