The cannabis industry faces a rare opportunity as the drug heads toward a potential rescheduling in the United States. A new Roth Capital report suggests that multistate operators (MSOs) are the most promising companies in the space.
Roth Capital Partners analyst Scott Fortune said the cannabis industry represents a unique and sizable one-time opportunity as it converts from an illicit market to a legal one.
The reasoning behind rescheduling cannabis in the U.S. is three-pronged, Fortune said in a Friday note.
“Quickening favorable public sentiment, progressive legislation and accommodating regulations should eventually deschedule cannabis as a Schedule 1 drug and bring an end to decades of cannabis prohibition,” the analyst said.
The report singled out MSOs as they assemble a dominant position in the market. MSOs as the most promising…