The Canadian cannabis market has been at the forefront of the industry since its inception, with medical marijuana legalization occurring years before any other developed nation. Because of this large exposure to the market, the Canadian marijuana stock industry has also been taking over and looks as though it is poised to continue.
One of the largest effects on the Canadian stock market is the impending legalization factor of recreational cannabis. A bill will be passed through the Canadian Senate for a third and final review this summer, with many expecting it to pass. This would not just be a huge step for the country, but it would be large news for the rest of the world as well. If marijuana is legalized for recreational use throughout the nation, it could represent a paradigm shift in the taboo connotations usually associated with the cannabis industry.
Another major factor to the positive growth in the Canadian market is the U.S.’s trouble with legislation. The U.S. has been plagued by Attorney General Jeff Sessions’ promise to keep the failed war on drugs alive. Although many saw this as a bad thing, it has, in turn, helped to substantially grow the Canadian market.
Many estimates have put the Canadian market on cannabis at $22.6 billion for the next year, but further, down the line, these numbers get quite larger. One of the most popular companies in the country for marijuana is Aurora Cannabis. Aurora represents a large chunk of the Canadian industry, but they also cover a large portion of the market abroad across Europe as well. The company also was able to recently partner with companies in Australia and Colombia to help produce legal cannabis there as well.
People have been keeping their eyes on the Canadian market for some time now, as it stands to represent a large portion of how the world views marijuana. Because Canada is currently further ahead in the process of nationwide recreational legislation than any other developed country in the world, many people are watching to see how it will go in the near future. Pierre Debs, managing director of Spektrum Cannabis GMBH, a subsidiary of Canopy Growth inc., stated that “all eyes are on Canada right now, not only for what’s coming with recreational legislation, but also because Canada has basically defined the standards on how to do a medical cannabis industry.” Debs has stated that he expects his company to export as much as 200kg of Canadian cannabis to Germany by the end of this year. Canopy is also working to build a wide range of new growing facilities to help amp up production for the other markets abroad in the near future.
Aurora Cannabis continues to represent a large amount of the industry, taking over the popular company CanniMed towards the end of last year. Because of this large takeover of the market, many Canadian companies have been able to move into the abroad markets in a larger way. The company Aphria, is another one of the Canadian giants that is working to take their market abroad as well. Aphria recently paid upwards of $800 million for the cannabis firm Nuuvera Inc. due to the fact that they have one of seven import licenses for the Italian market. All of these factors help to paint a brighter narrative of the Canadian cannabis market and marijuana abroad. The hopes are high that the near future will continue to see positive news in the cannabis space. Only time will tell how well new legislation continues to affect existing markets.