Politics

Canada Officially Legalizes the Recreational Consumption of Cannabis

Today, the Cannabis Act officially passes in Canada making the country the first G-7 nation in the world to legalize the recreational consumption of cannabis. The new law will not only has huge implications for their cannabis industry but, also has changed the way the industrial hemp industry functions as well.

Public companies involved in the sector have positioning themselves for this day over the course of the past few years. They have increased their production capacity, acquired additional assets, grown their product brands, and merged with other public entities in order to best position their companies to handle the expected demand in the coming years. It is expected that the Canadian cannabis market will grow to a $9 billion-dollar market by 2025.

The Cannabis Act also sets a new prescient for farmers involved in the industrial hemp industry. The new law will allow companies to utilize the entire plant, including the flowers and leaves, to extract cannabinoids such as Cannabidiol (CBD), Cannabinol (CBN), and Cannabigerol (CBG). The Brightfield Group in indicating that the hemp derived CBD market will grow internationally into a $22 billion dollar industry by 2022.

“The flowering heads, leaves and branches of industrial hemp will no longer need to be destroyed. Instead, these plant parts may be sold to another holder of an industrial hemp licence or a holder of a licence under the Cannabis Regulations.”

The increased demand for cannabinoid derived products has created a mainstream billion dollar industry. As the industry grows, investors will continue to buy, sell, and raise the stock price of public companies involved in the sector.

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