Canada faces one last hurdle to becoming the first G7 nation to legalize recreational marijuana.
Canada is a step away from becoming the first G7 country to legalize recreational marijuana with weed retailers getting ready to make billions of dollars.
Canada’s Cannabis Act was introduced in the Canadian Senate Tuesday, its last legislative stop. The bill is getting wide public support and the backing of Prime Minister Justin Trudeau.
“iT Is broadly recognized that criminalizing cannabis has been a failure,” said Senator Tony Dean of Ontario. He believes it will pass by July 2018, if not before.
via RT Business News
Retailers have been preparing to start selling legal marijuana in July. So, the timing could be tight. Canada’s recreational marijuana market will end up making big money. Annual sales for Canada’s recreational marijuana market could range between $2.3 billion and $4.5 billion by 2021.
Recreational marijuana sales have an estimated total $7.1 billion to $10.3 billion. In the U.S. by 2021, according to Marijuana Business Daily.
However, these figures do not include expected, estimated revenue from medical marijuana sales in either country.
Dean believes the legal recreational sales will be able to begin almost immediately in July, despite the short legislative window.
Overall, Canada’s government will support online sales. The government will implement to support the country’s medical marijuana industry. The U.S. has not had this success.
On the other hand, Canadians buy their pot on websites and have it delivered. Websites like Ganja Express and Buy My Weed Online and Emerald Health Therapeutics currently offer medical marijuana customers an array of cannabis products, from traditional marijuana that’s sold by the gram, to concentrates, topicals and edibles.
Canadian cultivators are getting ready to meet the anticipated surge of recreational marijuana.
Premium Produce’s Nate Race states they are ready to begin. Moreover, This medical marijuana farm in British Columbia that has expanded its staff from about 70 to 100. Annual production will grow from 14,000 pounds of marijuana to 134,000 pounds by the end of 2018.
via RT Business News
On the other hand, California is aiming to begin in 2018 and account for it more than half of the sales.
Nick Kovacevich, CEO of Kush Bottles, which makes vaporizer equipment, no plans to do business outside the U.S.
“We have a bigger market opportunity here in the U.S.,” he said.
However, marijuana’s shaky legal status in the U.S. could cause complications. If the federal government prohibits it things could change quickly for entrepreneurs working in cannabis.
“The growth that we’re seeing in marijuana [in the U.S.] is only a piece of what it could be,” he said.
Nevertheless, Canada’s move toward legalization has already inspired one U.S. company, the New York-based alcohol beverage producer Constellation Brands, to buy a 10% stake in the Canadian pot company Canopy Growth Corp. for $190 million.
John Kagia, an analyst for New Frontier Data, said: “this is a wake-up call to all investors. Sitting on the sidelines is no good. This is really going to happen.”