On Monday night, Canada’s Liberal Party surged to a majority government win, ousting the Conservative Party from power. The medical marijuana sector is set to benefit from the Liberal win, and cannabis stocks are already reacting favorably to the victory.
Since the start of the election campaign, newly elected Prime Minister Justin Trudeau has made it clear that he will make legalizing marijuana across Canada a priority. In fact, speaking to CTV News at the end of September, he said that if elected he and the Liberal Party would begin working to regulate and legalize marijuana “right away.”
Unsurprisingly, many Canadian cannabis stocks jumped on Tuesday on the news. Canopy Growth (TSXV:CGC), formerly Tweed Marijuana, was up 4.59 percent, at $2.28, as of 12:30 p.m. EST, while Organigram (TSXV:OGI) had risen 7.69 percent to hit $0.56. Both companies are authorized licensed producers under Health Canada’s Marihuana for Medical Purposes Regulations.
Canadian marijuana law reform?
Laws surrounding the production, use and sale of marijuana in Canada have been a little hazy since the Marihuana for Medical Purposes Regulations (MMPR) were introduced in April 2014. The MMPR introduced a list of authorized producers for medical marijuana users can go and essentially fill their prescriptions, much like a pharmacy. That’s different from the old system set up in 2001, under which individuals with medical issues could grow their own marijuana.
However, despite the introduction of the MMPR, marijuana is still considered illegal in Canada on a federal level, and possession without a medical prescription is considered an offense. As a result, Canadians can receive criminal records for possessing small amounts of the drug.
Trudeau hasn’t provided a timeline for how soon changes will happen, saying that he and the Liberal Party “don’t yet know exactly what rate we’re going to be taxing it, how we’re going to control it, or whether it will happen in the first months, within the first year, or whether it’s going to take a year or two to kick in,” as per CBC News.
Even so, medical marijuana users, as well as companies working in the cannabis space, are undoubtedly pleased that the emerging industry will have a chance to grow. While there are few estimates out there for how much a legalized marijuana sector could benefit Canada’s economy, looking at the US states that have legalized it offers some clues.
For example, Colorado’s recreational marijuana sales were nearly $60 million in August, and surpassed $100 million for the month when paired with medical marijuana sales. What’s more, Oregon generated more than $11 million from recreational marijuana in its first week following legalization on October 1, surpassing Colorado’s first week of sales, which came in at $5 million.
In a note put out Tuesday, Dundee Capital Markets estimates that by 2024, a Canadian recreational marijuana market could generate $2 to $5 billion annually. That would be in addition to the $1.2 billion generated by the medical cannabis market. The firm used three separate methodologies to get the estimate, including Statistics Canada 2012 information, Colorado’s recreational sales numbers and information from US research firms.
“Canadians are already amongst the highest marijuana consumers in the western world, meaning the take-up of a recreational market would be near immediate in our view,” as per the research note. Those working and investing in the space will no doubt be watching closely for Trudeau’s next move.
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.
Legal Cannabis Stocks in North America
How to Invest in Medical Cannabis
Legalizing Medical Cannabis: A Look at the Laws Surrounding Medical Marijuana
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).