When exactly is the legalization of cannabis set to officially take place in Canada? A Senate committee is asking to take an extra year to finetune the actual bill legalizing the drug, but the Canadian leader disagrees.

In that regard, as cannabis investors eagerly await legalization, the Investing News Network (INN) takes a closer look at the current dispute for the implementation of Bill C-45.


Firstly, Bill C-45 faced the recommendation of the Senate’s Aboriginal peoples committee, asking for a delay up to one year for the implementation of the bill in early May.

On the delay and recommendations the CBC wrote:

The committee said the government should take the extra time to make certain “culturally sensitive” materials are available to warn Indigenous peoples about the risks of consuming cannabis, and to negotiate a revenue-sharing deal with First Nations governments to ensure they get a cut of the millions of dollars expected to be collected in excise taxes on the drug.

The senators also recommended the federal government set aside 20 percent of all licenses for cannabis producers for Indigenous peoples so they can pursue business ventures.

The third reading for Bill C-45 is scheduled to take place on June 7. Despite these calls for delays, months away from the expectation of recreational sales, the Canadian government has said it met with Indigenous peoples and considered the issues of these communities.

Speaking to reporters, Prime Minister Justin Trudeau said last week his government is moving forward with the legalization of cannabis this summer despite the suggested delay.

“Obviously, as I’ve said many times, this is not an event, this is a process, and we will continue to work with our partners in the municipalities, in provinces and Indigenous leadership in communities to make sure we’re doing this right and moving forward in a responsible way.”

In February Health Minister Ginette Petitpas Taylor said the federal government will require eight to 12 weeks to fully implement the new legislation across the country.

An analyst’s take on the bill’s process

“There is a growing voice in the Senate to try to torpedo this bill, I don’t know if it has enough legs to do it,” Jason Zandberg, cannabis analyst with PI Financial told INN.

Zandberg expects the bill to pass through third reading and most of the investors he speaks to on an everyday basis expect it as well.

“If I were to give it a percentage I would say 80 or 90 percent chance it is going to pass but that 10 to 20 percent is can change in a hurry,” Zandberg said. His personal prediction for the start of recreational sales is September 1, 2018.

Investor takeaway

While investors of the cannabis space would rather move ahead with a legalized market and take the Senate deliberations as a done deal, any roadblocks to the actual cannabis bill could cause delays on recreational sales and a better review of all cannabis licensed producers (LP) by analysts.

“I always get worried when I talk to an investor and they sort of casually say ‘oh yeah it’s a done deal,’” Zandberg told INN. “Because quite clearly when politics are in play and these are votes that are out of our control I’m always worried.”

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) will release its financial results for the third quarter fiscal 2021 ended December 31, 2020 before financial markets open on February 9, 2021.

Keep reading... Show less

NYSE | TSX: ACB

Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today the closing of its previously announced bought deal public offering (the “Offering”) of units of the Company (the “Units”) for total gross proceeds of US$137,940,000 . The Company sold 13,200,000 Units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

Keep reading... Show less

Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE | TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today the closing of its previously announced bought deal public offering (the “Offering”) of units of the Company (the “Units”) for total gross proceeds of US$137,940,000. The Company sold 13,200,000 Units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

Each Unit is comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 36 months following the closing date of the Offering at an exercise price of US$12.60 per Warrant Share, subject to adjustment in certain events.

Keep reading... Show less

AMP German Cannabis Group Inc. (” AMP “) (CSE: XCX ), ( Frankfurt : C4T ) (ISIN: CA00176G1028) and Aphria Inc.’s (” Aphria “) (TSX: APHA ) (NASDAQ: APHA) wholly-owned German subsidiary, CC Pharma GmbH (” CC Pharma “), have entered into a strategic agreement (the ” Co-Promotion Agreement “) covering joint marketing of sales for Aphria brand medical cannabis products for the German market.

The Co-Promotion Agreement is a collaboration contract between AMP and CC Pharma to sell the Aphria medical cannabis brand in Germany . In addition, AMP will organize with the support of CC Pharma, “information events” in Germany to market Aphria branded products to doctors and pharmacists.

Keep reading... Show less

HempFusion Wellness Inc. ( TSX:CBD.U ) ( FWB:8OO ) (“ HempFusion ” or the “ Company ”) is pleased to announce that it has been included in two leading cannabis & hemp-derived CBD focused exchange-traded funds (“ ETFs ”), AdvisorShares Pure US Cannabis ETF ( NYSE:MSOS ) and AdvisorShares Pure Cannabis ETF ( NYSE:YOLO ).

AdvisorShares is a leading sponsor of actively managed ETFs. Pure US Cannabis ETF (MSOS) is the only US-listed ETF dedicated solely to US cannabis exposure, with over US$616,000,000 in assets under management (“ AUM ”). Pure Cannabis ETF (YOLO) was the first US-based actively managed ETF focused on the global cannabis industry. YOLO and MSOS endeavor to achieve long-term capital growth by investing in some of the largest foreign and domestic cannabis and hemp-derived CBD companies. The two AdvisorShares ETFs have a combined AUM of over US$880,000,000 as of January 22, 2021.

Keep reading... Show less