The Canadian cannabis market is arguably one of the largest and most influential in the world, and with an upcoming vote on recreational cannabis, they could become even larger. Recent news has shown that Canadian investors may soon be increasing their portfolios with marijuana-related stocks. This will likely help to continue bringing new investments into the market and growing it all together.
According to a new report, there are currently around 50 investors who recently bought stakes in the cannabis company known as Canopy Growth, ahead of its $200 million financing deal in January. These funds usually avoid high-risk stocks, but investors have stated that they believe there is so much potential in the future of the market that it seems like a good idea. Many of these companies have not released statements on the new investments or its value, but there is no doubt that it is quite high.
Canopy Growth is one of the largest growers of cannabis in the world and has plans to more than quadruple their operations in the coming future. With new production, there is also an increased demand in the market. This demand will also likely become even higher in the coming future given that cannabis will likely be legalized for recreational use this June in the Canadian parliament. Some have stated concerns though, that there may be an oversupply in the market with the coming legislation. Many companies such as Canopy Growth, have upped their production for this new legal market, but some are stating that it could be too much. This, of course, would be great on the consumer level, as prices would likely begin to drop. One number has stated that there is currently an aggregate supply of around 1.5 million kg per year of cannabis with a forecasted sale amount of around 625,000 kg.
The legalization of cannabis throughout Canada would likely change the course of history. Canada would effectively become the first developed country to legalize cannabis on a nationwide level. The current state of cannabis throughout North America is quite confusing. Many legislative moves are currently in the works by the U.S. government to make cannabis legal throughout the country, but it likely will take much longer than anticipated. The Canadian and U.S. cannabis markets have been working together quite well in the past such as in states like Colorado and California. One of the things that could change in the future is the exporting of cannabis from Canada and the U.S. If the bill in Canada passes this summer after the third vote, it would legalize the export of cannabis from the nation. This means that Canada could soon become one of the larger suppliers to cannabis markets throughout the world such as the European market and beyond. Because of this, many investors have been flocking to the Canadian cannabis market due to these new opportunities.
The cannabis market is however very much still in its infant stages. Because of this, many stocks still react very much based on the idea of speculation. This has caused a lot of issues in the market, but these issues are quickly being solved as the market is becoming more and more mature. The hopes are that the maturation of the market will help to bring in a new slew of investors in the coming future. The real challenge has remained that of legislation, so with new laws coming in the near future, it seems as though many of these challenges will be a thing of the past.
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