Re that Senate vote.. ICBC report
Even with the legalization bill expected to pass the Senate this Thursday, there are a few more political hurdles to jump over, so recreational sales are still a few months away, as the Toronto Sun explains:
This means the provinces likely won’t start selling legal recreational weed to consumers for another 10-14 weeks as regulatory rules by the government are fine-tuned.
That slow progress is just as it should be according to Ontario independent Senator Tony Dean who is the sponsor of Bill C-45.
“It could be the last week of August — it could be the beginning or mid-September,” Dean said of the availability of recreational pot.
The Canadian cannabis industry is already a billion dollar industry and the market is set to grow substantially. While the competition is fierce and overregulation is a battle, there are vast opportunities for both cannabis companies and ancillary businesses that serve the industry. As all eyes are on Canada, we should see momentum to end prohibition gain traction across the globe as nations learn from Canada, and then eventually, vice versa. As we continue to fight for freedom, jobs, and revenue state by state, nation by nation, it is great to see history being made step by step.
And here’s the Motley Fool angle…..
Jun 4, 2018 at 7:51AM
Big changes are afoot in the cannabis industry. In just a matter of days, Canada’s Senate is set to vote on bill C-45, which you probably know better as the Cannabis Act. If approved, and moved through the legal process in our neighbor to the north, Canada could become the first developed country in the world to have legalized recreational marijuana.
Legal weed is big business in Canada. The green light for legal marijuana is expected to add $5 billion or more in annual sales, which comes atop what growers are already generating from medical pot sales and via exports to legal countries. This expected growth is what’s been behind the rapid appreciation in pot stocks since 2016.
But a new trend may be under way: U.S.-based pot stocks looking north to list their shares. While U.S. marijuana stocks are also barred from listing on the Toronto Stock Exchange and Venture Exchange, they aren’t barred from listing on the Canadian Securities Exchange, or CSE. Going public, or moving a listing to the CSE, makes a lot of sense for U.S.-based marijuana stocks because it offers a quick means to raise capital. This isn’t to say that raising money via venture capital hasn’t been successful for U.S. cannabis companies, so much as it’s far less efficient than listing stock via an initial public offering or reverse merger.
Last week, the largest U.S.-based pot stock listing in Canada’s history occurred on the CSE, with U.S. retailer MedMen Enterprises (CSE: MMEN), the company behind upscale cannabis retailer MedMen, going public via a reverse merger with Cormark Securities. Following an initial round of funding that totaled about $110 million and valued the company at more than $1.6 billion, MedMen’s share price has shed about 18% of its value through midday Thursday, May 31. Still, at more than $1.3 billion, MedMen Enterprises suddenly ranks as one of the largest cannabis stocks investors can buy in Canada.