Marijuana Sales Reach $1 Million on First Day in Colorado; Stocks Shoot Up

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By Aditya Bhat | January 4, 2014 11:09 PM EST

The air in Denver now smells sweeter with people crowding the marijuana shops and lighting up as they go. This was a day after the legalization of marijuana in the US state of Colorado took effect. In the first 24 hours, the sales of the marijuana reached a collective $1 million, estimated shop owners in and around the Denver area.

Reuters
The first day sales of Marijuana has reached an estimated $1 million on the first day in Colorado.

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Apart from this, the shares of the marijuana-related companies have risen since it became legal on 1 January throughout the state of Colorado.

It has been claimed by advocates of marijuana legalization that this will be a profitable law where both the state and the local economy will be reaping benefits. The initial success of the legalization does prove them right.

A study estimates that the state government of Colorado will be able to benefit an annual $10 billion by 2018, AFP reported. However, other private companies like MediaSwipe Inc, who work with the marijuana stores, have registered a sudden 69.4 percent jump in their shares on 2 January and, over the month, the stocks were up by 88 percent.

Shares of other private companies like GreenGro Technologies, a growing equipment dealer, rose by 52.3 percent. Shares of Medical Marijuana Inc, a marijuana grower, rose by 22 percent, RT News reported.

Another research by ArcView Market, cited by AFP, says the marijuana market will grow further as the Washington state will open its gates to legalization of medical marijuana.

ArcView, in its study, says: "Gains will come in the form of increased demand in existing state markets, as well as from new state markets coming online within the five-year horizon."

All marijuana retail shops are charged with 10 percent tax for every sale and a 15 percent excise tax. The first $40 million collected in taxes will be directed towards helping the school system.

"This feels like freedom at last. It's a plant, it's harmless, and now anyone over 21 can buy it if they want to. Beautiful," said Amy Reynolds, who is the owner of two medical marijuana shops in Colorado Springs, RT News reported.

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(Photo: Reuters / )
The first day sales of Marijuana has reached an estimated $1 million on the first day in Colorado.
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