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Following the midterm elections, which saw Democrats take control of the House of Representatives as voters eased weed regulations eased in three states, there’s renewed optimism that the federal government could end marijuana prohibition. Murphy expects the pace of acquisitions in the U.S. to accelerate as companies try to build national scale.

Photo by Susan Walsh/AP Photo

“We humbly believe we’re leading that hunt,” Murphy said in an interview. “We intend to maintain that pole position.”

Murphy made his initial weed investment in 2011, putting money into a medical cannabis company in Maine. Acreage has since acquired licenses in Massachusetts, California, New Jersey, Florida, New York and other states. It’s jockeying for national position along with Curaleaf, MedMen and Green Thumb Industries — large U.S. companies that are publicly traded in Canada.

Legal cannabis sales are expected to rise above US$10 billion in the U.S., with more than half of that coming from the recreational market. Ultimately, the U.S. industry is expected to be more than 10 times larger than the market in Canada. While federal legalization has given Canadian companies a head start, U.S. companies hope to quickly close the gap, Murphy said.

“We’ll be lock step in competition with the Canadians,” Murphy said. “The one huge advantage we have is local knowledge of the business here in the U.S.”

Bloomberg.com