Pennsylvania’s medical cannabis market, praised for its smooth operation, is expected to nearly double to $400 million-$500 million in sales this year and reach $1 billion in sales within three or four years.
Buoyed by the market’s success, current licensees have become acquisition targets even in the current tough economic climate – with deal prices moving north of $25 million in some cases, experts say.
Pennsylvania, the fifth-most-populated state in the country, also is increasingly viewed as a market poised to legalize recreational marijuana.
That could occur within the next year via the state’s Legislature, according to industry observers, as lawmakers seek out revenue sources to replenish state coffers depleted by the coronavirus pandemic.
“Pennsylvania is seen as a market that’s not just robust but also well-run,” said Judith Cassel, a cannabis attorney in the state. “There’s been a lot of activity lately and a lot of interest in acquisitions.”