The potential of the cannabis market is not like any other, it is an opportunity to invest for the first time in a multibillion dollar market. Different analysts have established that the cannabis market can worth up to $ 58 million by 2025. This is impressive as it is bigger than the tobacco or wine industry, although according to the Canadian Prime Minister, Justin Trudeau, the cannabis recreational law will be treated similarly to those of tobacco and wine.
But, why is this market so important? What will the financial market gain?
The first companies to win the tender with the Canadian government will become the first large and legal distributors of the cannabis plant and its derivatives. This presents a competitive advantage over the others that will come to market in the future.
One of the companies that already has the licenses for cannabis production under Access to Cannabis for Medical Purposes Regulations (“ACMPR”) is FSD Pharma Inc., (OTCPK:FSDDF) (C.HUGE). This company is aiming to develop the largest legal indoor cannabis facility in the world. In order to accomplish their purpose, the company acquired an Ontario-based land that used to belong to Kraft Foods, which is about 630,000 square feet. This company will be the first one to produce indoor cannabis, making them different from the rest of the pot producers in the market. They have this benefit that no other company in Canada – or in the world – has.
On the other hand, there is a company that has ownership in 2 of the 46 licenses that have gone out for the cultivation and production of marijuana in Canada. It is ready to go out to the potential cannabis market when the time comes. This company is called Invictus MD, which is ready to rise.
Now that the legalization of cannabis is approved, the financial market will give a change, opening a new one for investors. Health Canada reported by December 2017 that the number of medical cannabis patients was 270,000. This means that with the legalization it is expected that the number will increase but so will the benefits for consumers and for investors.
This opens a window of opportunity for companies such as FSD Pharma, since their efforts for the production of cannabis and its products aims to give many results.
Cowen & Co. estimates that cannabis will be worth $75 billion in the United States by 2030.
With these tempting numbers, many companies have aroused interest in the new cannabis market. Clearly, the results of legal marijuana production will not be reflected right away but they are very promising numbers for the investors.
The Canadian financial market will show a change with this new law, that’s for sure. The important thing is that companies receive their licenses for legal production of pot to start seeing real changes.