When Canada legalized the adult use and sale of cannabis nationwide last October the floodgates were opened for curious investors who have been eyeing the blooming cannabis industry but have been too afraid of intervention from the federal government of the United States or their own countries’ anti-weed authorities.
We have seen massive corporations like Constellation Brands (makers of Corona and Modelo beers), Philip Morris International (of Marlboro cigarette fame), and even Coca-Cola take their American dollars north to the safety and potential opulence of the legal Canadian market.
Quite literally, billions of dollars of investment capital have poured into Canada, and likewise, millions or billions more then caravanned back across our northern border and into the U.S. as those cash-flush Canucks migrated south to try to actually figure oooot what weed was all aboooot.
According to MJBizDaily, “During the first three quarters of the year (2018), at least 40 U.S. cannabis firms have been acquired by Canadian companies, more than double the 17 deals inked during the same period in 2017.”
Despite the fact that our government is so ass-backwards on the issue that they have instructed U.S. Border Agents to deny entry to Canadians who admit to or can be traced to being involved in any way with legal weed, well-positioned Canadian moneymen are seeking out licensed American entities in States like California and Nevada, among others, to establish a secure foothold in the U.S. market which everyone expects will boom… eventually.
Don’t get us wrong, many states are seeing massive profits from their own individual state-level cannabis reform laws, but until the federal government in America gets onboard the real money is still being made in Canada.
Aside from the basic rights like being able to bank their money properly and being able to insure their businesses properly, plant-touching Canadian cannabis operations are also allowed to be traded freely and openly on the American stock market.
Forget the running punchline of High Times trying to scrape up investors by way of YouTube and Facebook ads, the big boys like Tilray (NASDAQ:TLRY) and Canopy Growth (NYSE:CGC) are leading the way not just on their own home turf, but across the globe as well.
As our federal government plods through the 32nd day of the shutdown based on the fabricated need for some unnecessary half wall on the southern border, it remains stuck on continued prohibition of the very same cannabis plant that is generating billions of dollars of capital on the wrong side of our northern border.
Hell, the state of Oregon is sitting on over 1,000,000 pounds of unsold legal weed in its track and trace program while other states are experiencing supply shortages and would love to import some midgrade Oregonian boof across state lines to fill their lower shelves with.
Nope, not with cannabis… not in America.
But it’s not just revenue lost domestically that should concern our government, but the lost opportunity to be first to the international market, a role that our neighbs to the north are happily fulfilling.
On Monday of this week, Canopy Growth of Canada announced their formation of a new Europe-based company by the name of Spectrum Biomedical UK, and as the name implies it will be headquartered in the United Kingdom. Along with an additional upstart in Poland, Canopy extends its reach to five European installations.
If you thought federal cannabis reform is slow moving here in the U.S., the Brits have had a painstakingly sluggish process marred by corruption at the highest levels of government… sounds familiar…
The country celebrated its very first medical marijuana patient just in December of last year but she had to have the goods imported from the Netherlands which came with a long wait time and a price tag of several thousand dollars for just a three month supply.
Despite the lack of a robust, regulated cannabis market across the pond, Canopy is betting big that change is on the way and calls the launch of Spectrum an attempt to “address a groundswell of patient need for high quality, standardised cannabis-based medicinal products in the UK”.
Canopy, the largest publicly traded cannabis company on the planet, plans to spread knowledge across the region by way of lobbying patients’ groups, doctors, and politicians in order to kill the negative stigma, simplify the system, and ensure safe access to cannabis for those who need it.
In doing so, they will be creating the market that they are then so well-positioned to serve. In fact, they have already begun to ship high-THC flower from Canada over to Poland where an expected 300,000 residents will soon be eligible to smoke it all up.
Indoor from SoCal and outdoor from the Emerald Triangle could be fetching top dollar not only on dispensary shelves across 50 states, but across the globe. Instead, our brave leaders cower in the corners of their foxholes while World War Weed rages on around them.