The vote on Thursday almost assures that marijuana will be legal in Canada eventually. Read Grizzle’s guide to find out when you can start consuming marijuana legally, and what this law will mean for Canada today, tomorrow, and 5 years from now.
MedMen was caught by an astute customer in California, advertising their public Canadian listing on store receipts. This looks to be another ethically questionable move by a management team that seems to have lost its way. Only time will tell if there are legal ramifications to this move.
Senator Cory Gardner of Colorado introduced a bill on Thursday to amend a US law to allow banks to do business with marijuana businesses in legal states. The bill would also protect states that have legalized marijuana from federal charges.
When asked if he would support the bill President Trump replied: “But I probably will end up supporting that yes”.
Aphria will have over $300 million of cash after building their new $55 million extraction facility. This is enough money to reach planned capacity of 273,000 kg by 2022 and still have $10-$20 million in the bank. Aphria is fully funded for growth.
Grizzle thinks the decrease in medical market share is only temporary and once marijuana derived medicines are created, patented, and finally approved by regulators, medical demand for marijuana will overtake recreational use in the next decade. Prescription drug spending in Canada was $40 billion in 2017 compared to a marijuana market that isn’t expected to exceed $7 billion. Medical demand is the real opportunity.
The melt up we were expecting arrived this week with global stocks up 4% for the week driven by excitement around Canada’s vote on full marijuana legalization. Savvy investors would have made the most money buying marijuana stocks 2 days before the vote and selling their positions the night before the vote. This week was a typical buy the anticipation sell the news trade.
READ THE MARIJUANA EXPORT MIRAGE FOR AN IN-DEPTH REPORT ON THE STATE OF DEMAND FOR MEDICAL MARIJUANA OUTSIDE OF CANADA