The Globe and Mail reported that while legalizing marijuana in Canada will benefit some people and companies in the space, for the majority “[t]he economic impact of legalization will be negligible.” That’s in contrast to the widely held belief that legalizing marijuana will open the floodgates to “piles of cash.”
As quoted in the market news:

The latest report, from CIBC World Markets, says Canada’s federal and provincial governments could pocket $5-billion a year in tax revenues from the sale of legal marijuana.

The $5-billion figure, a blip in a near $2-trillion economy, comes with a few caveats. It does not account for the enormous undertaking of building the necessary framework to support legalization. There will be regulations around marketing, sales, production and transportation, and each province and territory will have different systems dependent on their needs, resulting in an expensive patchwork of regulatory parts.

Most glaringly, we still need to implement an effective roadside test for marijuana impairment, and determine at what level a user becomes impaired. Not a simple task, since individual tolerance ranges wildly. We’re also not likely to save much in criminal justice expenditures, as the laws around marijuana are applied selectively, in an almost de facto legal state, so legalization will only be making the current situation official.

The CIBC’s findings are also dependent on the elimination of the illicit market, which is unlikely to happen. Dispensaries will have limits on their operations, require proof of age, have set price criteria and potency constraints. These are important and necessary restrictions, but they also ensure that others will still turn to the streets. It is, after all, not an open-ended system we are creating, but a restricted one.

The most critical part of all this, though, is that while $5-billion is not an insignificant sum, it is, as the CIBC study notes, just 0.25 per cent of Canada’s GDP. Avery Shenfeld, the economist who crunched the numbers, referred to the amount as “no barnburner.”

Click here to read the full article from The Globe and Mail.

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, is pleased to announce the appointment of Mr. Al Reese, Jr., to its Board of Directors

Mr. Reese has over 40 years experience in public and private businesses including as CFO of a formerly Nasdaq-listed energy company where he arranged finance transactions totaling over $10 billion dollars during his 20-year tenure. Mr. Reese was a Director and Chairman of the Audit Committee of a community bank in Texas for ten years until such time as it was acquired by a larger banking group in 2018.

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Mexico looks to be closer than ever to cannabis reform, with the country releasing its regulation plans to make the drug legal in medical settings.

Meanwhile, despite the financial hardships seen recently in the Canadian cannabis market, CEOs in the country are still receiving top dollar, as per a new study.

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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 the pricing of its previously announced best efforts overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company at a price of C$16.00 per share for a total gross proceeds of approximately US$125 Million. The issue price represents a 3.3% discount to the last close of the Company’s subordinate voting shares traded on the Canadian Securities Exchange as of January 14, 2021. 100% of the Offering is expected to be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors.

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Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN) Red Light Holland (OTC: TRUFF) (CSE: TRIP) and Aphria, Inc. (NASDAQ: APHA).

Investors are cheering new and expected legislation which is opening new market opportunities for both cannabis and psychedelics globally. Innovation in premium branding, growing technologies, manufacturing, with operational execution are key, in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders in cannabis and psychedelics:

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Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company”) today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,828,571 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock at a public offering price of $5.25 per unit (all prices in US$). The warrants have an exercise price of $6.58 per share, are immediately exercisable and will expire five years following the date of issuance. In connection with the Offering, the underwriter exercised in full its option to purchase an additional 274,285 shares of common stock and additional warrants to purchase 274,285 shares of common stock. The gross proceeds from the Offering were approximately $11.04 million, before deducting underwriting discounts and estimated offering expenses. No securities were offered or sold in Canada, including through the CSE or any other trading market in Canada

H.C. Wainwright & Co. (“Wainwright”) acted as the sole book-running manager for the Offering and is a non-related party to the Company.

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