Canada’s marijuana market is going through a rough ride. The stocks that brought outstanding gains last year is now not sure to be the same. The country is about to allow the use of cannabis for recreational purpose in July. Agora Weed suppliers all set for the change that is about to come in Canadian weed market. You can check it out how the country’s shift in weed policy will benefit each one of you. Canada will be the second country after Uruguay to legalize the production of marijuana for recreational purpose. This policy change is going to bring sea changes in the way marijuana business operating in Canada.
Officially Changes Will Be Effective By July!
The change is said to be officially accepted by the market in July. The weed sector businesses in Canada were in a nascent stage which is now ready to grow to a whole new level. The long-anticipated change will bring in many new things in the weed businesses. With the legalization one doubt has crept in, and that is the attractiveness of cannabis price as compared to the black market. The selling price under legalized conditions will be less attractive than the price one could find on the black market.
Analysts say that a price bubble is getting created over here. The price valuations are not entirely justified even if the promotion of marijuana takes place in a legalized way. Seeing the policy change, many big investors were attracted to the Canadian weed market. The largest alcohol producer from American the Constellation Brands invested a significant amount of C$245 million in the company known as Canopy Growth Corp. They are the most significant producers of marijuana in Canada. This is set to encourage a substantial momentum in the country towards weed production. The stocks of the company are still not showing a bullish trend as all the investors went away with their profits.
The much skeptical policy change has resulted in the stocks being withdrawn by investors. There can still be a positive sign after the market gets legalized. After such a significant investment made by Constellation, the market capitalization of top four marijuana producers in Canada ranged between 40% to 143%. Those top four players are none other than Canopy, Aurora Cannabis, MedReleaf, and Aphria. Earlier this month the market reached great heights owing to the investments made in the Canadian Cannabis industry.
These sky-high valuations will attract more investors and profits shortly. Analysts are relying on the sales of marijuana after legalization to decide what will be the profit from the market. The sales projections are said to range from 5 billion to 10 billion Canadian dollars a year. How accurate these projections are will be known only after the legalization takes place. The black cannabis market is so widespread that the legalized business might be affected in the beginning. For long-term, the industry is expected to show a bullish trend. The reason is also that Canada will get the early mover advantage of legalizing the market without a shred of doubt.