The Summer of this year represents one of the most incremental pieces of legislation for the whole of the history of cannabis as an industry. The Canadian government is set to vote for a third and final time on whether or not cannabis should be recreationally legal throughout the nation. The vote looks as though it will be positive, but there is always a chance that it will not pass.
The bill known as C-45 was already cleared and voted upon with a number of 44-29. This vote allowed the bill to continue through the Senate. Interestingly enough, over the past 100 years in Canada, the Senate has only voted against one bill that was approved by the House of Commons. Because of this, the odds look to be very much in favor of the bill passing. The question now is what will happen next once this bill is able to pass through both sects of government.
The market for cannabis in Canada has grown tremendously over the past year or so with investors driving prices higher due to the increasing likelihood of the aforementioned bills passing. The new laws have helped to produce a guided industry with new regulations on how a product can be packaged, distributed, transported and more.
Many in the industry have predicted that there may, in fact, be an oversupply due to the anticipation of the growth in the market. Jason Zandberg, an analyst at PI Financial, has stated that there may be a slight oversupply for the next few years, which is in part due to the some of the shortages that currently exists among other factors.
According to one report “the last 2 years, there has been a clear trend for marijuana stocks, which has been a sideways trend overall. From late May to September, the North American MJ Index has shown this to be the case. What has followed the sideways trend has been an aggressive and clear bull run to new market highs.” This could mean that the industry may potentially get off to a slow start, but this is typical of the market at this time. Many factors are showing that the introduction of legal cannabis into the industry could mean that the market will become more stable in the near future. The trend of Canadian marijuana stocks for the past several years has been consistently up, showing that the lack of volatility may be beneficial to the growth of the market.
One of the biggest promises in the growing market is the influence of cannabis industries abroad. Canada will now make it legal for the export of cannabis as well to places like Germany and other countries around Europe. The other exciting prospect is the fact that Australia could potentially grow their legal market in the next few years, which adds to the total amount of exportation ability for Canada. These factors all join together to show the promise and opportunity in the cannabis market within Canada.
The cannabis market is still very much in its infant stages which means that there is a large amount of room to grow. With new and fairer legislation for the industry, the hopes are high that the world will be able to view Canada as a case study for what happens when a developed nation decides to legalize the use of cannabis nationwide. Only time will tell how well the new and existing market will continue to benefit, and benefit from the legislation that will hopefully pass this summer. Until then, it is simply a waiting game.
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