These Two Cannabis Stocks Face Setback Following Pennsylvania Budget Approval: What You Need To Know
Pennsylvania’s recent budget approval excludes the legalization of recreational cannabis, marking a significant setback for cannabis companies like Jushi Holdings (OTC: JUSHF) and TILT Holdings (OTC: TILT).
Governor Josh Shapiro, who had championed the cause, faced opposition from a divided legislature. The state House, controlled by Democrats, struggled to reach a consensus on regulation, while the GOP-majority Senate remained opposed to legalization.
The new budget focuses on broad economic and social investments but omits provisions for recreational cannabis. Key investments include $1.11 billion for K-12 public education, $500 million for site development to attract businesses, and $354.8 million for home and community-based services.
Strategic Moves By Jushi And TILT Amid Delays
Jushi Holdings (OTCQB) and TILT Holdings (OTCQB) have made substantial investments in Pennsylvania, anticipating the transition from medical to recreational cannabis sales to drive growth.
Jushi’s current enterprise value is considered undervalued, suggesting significant potential upside with regulatory clarity. “Jushi is poised for a market cap surge of over 250% if Pennsylvania initiates recreational cannabis sales,” said senior analyst Pablo Zuanic from Zuanic & Associates.
Meanwhile, TILT Holdings, operating Standard Farms, secured a $10.5 million financing arrangement to expand its operations in Pennsylvania. The funds are earmarked for constructing dispensaries authorized by a Department of Health permit.
“We applaud the Commonwealth for providing a positive …