Canada’s Booming Marijuana Industry Foreshadows What’s To Come For The United States

Marijuana stocks have went through quite the year. Stocks have been fluctuating in correlation with the increasing number of states that have legalized the drug. As new partnerships form and strategies are executed, people draw their attention to the marijuana industry. In the United States marijuana is such a hot topic due to its differing opinions across the nation. This is very different when you’re comparing it to places like Canada where the laws are looser pertaining to marijuana. Marijuana companies and stocks are currently booming in Canada as they have learned how to use the industry to their advantage in advancing the economy. And Thursday’s vote to move forward with Canada’s national legalization for recreational marijuana was another big win for the country & for the industry as a whole.

A company located in Vancouver has positive news to release about their future expansion. Village Farms International Inc. and Emerald Health Inc. dropped news that Health Canada granted them with a Cultivation License for their co-owned greenhouse operation. This has changed the company and the marijuana industry immensely. The company has a 1.1 million feet squared marijuana growing facility. It has been strategically located in one of the best climates for growing the drug.

Estimates show that it will produce 75,000 kg of cannabis annually, when its in full production. They promise that all of their cannabis is high in quality because they are a very well-known and reliable marijuana company. They want to continue their growth and respect within the industry and come out as a consistent supplier of good quality cannabis sold to wholesalers, distributors, and retailers in Canada, and hopefully internationally.

The company will have the funds to take themselves to this next level as their cost of production for cannabis is quite low. It costs them less than $1.00 per gram when operating at full production. The CEO of Village Farms International made a statement about the companies expected success, “In addition to production ramp-up, in 2018 the Joint Venture will focus on product development and developing its marketing strategy to become a vertically integrated leader in the Canadian cannabis market.”

Marijuana is clearly a hot industry to be apart of in Canada, and the success of companies just like Village Farms is evident for other marijuana businesses. Another Vancouver based company called RavenQuest BioMed Inc. recently announced a new acquisition in place. They acquired another Canadian cannabis producer that goes by the name of Bloomera. Raven received all of the outstanding share capital of the company in consideration for a cash payment of $15 million.

They received this along with the insurance of 10.4 million common shares to the already existing shareholders of Bloomera. A company like Bloomera was a great addition for Raven because they hold a Health Canada License to Cultivate. They will add 2,000 kg of annual production of marijuana to Raven’s invest division. Raven also owns another company called Alberta Green Biotec. Between the two facilities, RavenQuest predicts that they will produce at the least 11,000 kg of cannabis annually.

We see all the advancements made by the marijuana industry in Canada, and this is could be a foreshadow of what we can expect in the United States. As legalization continues, its safe to assume that marijuana will blossom into a profitable sector of the economy, as it already has in places like Canada.

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