Three years ago this was not a thing. You could not buy a company that was preparing to sell marijuana(mj) for recreational use. Now there are mj farms, dispensaries, accessories manufacturing and bi-product formulations being crafted for beverages and consumables. There is a complete new understanding of botanicals, oils, and dietary science being explored to further develop markets within this industry that in total are expected to dwarf beer and wine sales in the coming years.
I have chosen to write this article because we are at a historic legal and social acceptance point in Canada with regard to possession and cultivation of mj. Since the sixties there has been excess government resources spent on policing and upholding laws of illegal possession and trafficking of mj. Fast forward nearly 60 years and we are looking at government tax windfall to be collected on this once sinful weed. Once the benefits of medical mj in the areas of pain management began making headlines the stigma of pot began to fade.
The expected date of legalization in Canada was to be July 01, 2018 and recently it was changed to be sometime in July and now has been pushed back to August or September. The date is becoming more unclear and reason for this appears to be a logistical push back from the provinces as all 10 provincial jurisdictions are not ready.
Today’s enormous illicit consumer spending on mj and its bi products sets cannabis apart from most other major consumer-market investment opportunities throughout history. The cannabis industry doesn’t need to create demand for a new product or innovation, it just needs to move demand for an already widely-popular product into legal channels.
Today there are 21 countries that are at various stages of legalizing pot both medically and recreationally.
Health Canada began accepting applications for personal or designated cultivation in August 2016. There are now 91 corporate cultivation licenses in 9 provinces and over 6000 personal cultivation licenses (July 2017 Health Canada site). So far these licenses are for medical mj and with recreational legalization due this year these numbers are expected to rise dramatically…
Canada now has 87 publicly listed companies that are engaged in the medical mj industry.
A word of caution to investors, all mj companies are rated high risk and suit accounts that can accept this rating. Shareholders and speculators in the market place should realize this before purchasing in this sector. Most companies have begun their efforts in the cannabis sector in the last 2 years, that being said there is insufficient data to accurately determine if any of the listed companies on Canadian stock markets warrant the high stock prices that they currently trade at.
If you are interested in exploring opportunities in mj stock, index, ETF and mutual fund opportunities please call us, we will be glad to help.
Sources: https://webfiles.thecse.com/resource/CSE_Cannabis_Stock_List.pdf and https://www.tsx.com/
This information has been prepared by Mark Nichol, David Storrie and Roy Collings who are Investment Advisors for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisors can open accounts only in the provinces in which they are registered. CV Infinity Wealth is a personal trade name of Mark Nichol, Roy Collings, and David Storrie. For more information about HollisWealth, please consult the official website at www.holliswealth.com.