New Jersey is the first state in the New York area to start selling legalized recreational marijuana to adults 21 and over.
ROBERT ATANASOVSKI/AFP via Getty Images
Recreational cannabis made its legalized debut in New Jersey Thursday, giving some marijuana stocks a boost in premarket trading.
New Jersey is the first state in the New York metro region to sell licensed recreational marijuana for adults ages 21 and over.
“Today, recreational adult-use cannabis sales begin in New Jersey,” tweeted New Jersey Gov. Phil Murphy. “Today is the start of an entirely new industry for our state, and a historic moment in our work to advance social and economic justice.”
Dispensaries are allowed to sell up to the equivalent of one ounce of cannabis per transaction. This means up to one ounce of dried flower, or five grams of concentrates, resins, or oils, or 1000 milligrams of ingestible products like gummies.
All purchases are subject to a sales tax of 6.625%, plus a social equity excise fee of one-third of 1%.
New Jersey voters overwhelmingly backed a constitutional amendment to legalize cannabis during a November 2020 referendum. Murphy signed the reform bill into law the following February.
Some of the largest marijuana stocks were rising on Thursday. Aurora Cannabis (ticker: ACB) was gaining 0.2%, Tilray Brands ( TLRY ) rose 0.7%, and Canopy Growth Corp. ( CGC) gained 2%.
These companies are Canadian marijuana companies, which have steadily been increasing their presence in the U.S. as legalization gains traction at both the state and federal level.
The AdvisorShares Pure US Cannabis ETF (MSOS), which exclusively holds U.S. companies, was down 0.2%.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
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