How Marijuana Legalization in Canada will Lift 3 Major Companies
From time to time, massive opportunities for investment arise within Canada. And there is obvious excitement in investors with recreational marijuana set to become legal in Canada by July 2018.
The landscape of the industry is constantly changing on a daily basis, and it has been hard to keep up with the number of acquisitions, partnerships, production agreements, financing agreements, and regulations that are being announced.
Obviously, weed legalization in Canada will have a huge effect, especially on the top marijuana stocks in Canada, which shows great potential for the country’s economy and investors, which may be beyond the expectation of the industry and investors alike.
If all goes as planned, in less than six months, recreational marijuana will be legal in Canada.
The innovative marijuana companies popping up and the top marijuana stocks in Canada have opened the doors to many buying opportunities.
Here is a breakdown of three major companies that are set to benefit when weed is legal in Canada:
Loblaw Companies Ltd. (TSX:L)
Loblaw Companies Ltd. (TSX:L) is Canada’s largest grocery retailer and pharmacy provider, who has had quite an interesting end to 2017 and beginning to 2018, price-fixing schemes aside.
Loblaw has already made three deals with MedReleaf Corp., Aphria Inc., and Tilray Canada Ltd., which would enable its pharmacists to dispense the drug to medical marijuana patients in its Shopper Drug Mart stores, pending approval from Health Canada.
If all goes well, soon enough, Shoppers Drug Mart will be selling weed to Canadians in their stores. This isn’t something you would’ve imagined growing up in Canada years ago.
Now with marijuana legalization in Canada looming, Shoppers Drug Mart and Loblaw Companies Ltd. seems to be setting itself up to be a major distributor of legalized weed in Canada.
Alimentation Couche-Tard Inc. (TSX:ATD-A)
Couche-Tard (TSX:ATD-A) is a large retailer in Quebec that holds an enormous potential from marijuana legalization in Canada.
Couche-Tard is famous for being one of the largest gas station operators and convenience stores in Canada and the world.
The company has indicated many times that it is seeking approval to sell weed in its outlets.
Couche-Tard is already selling alcohol products in most of its locations in the province of Quebec.
The company believes that adding cannabis in its locations once the legalization of marijuana in Canada takes place will not be difficult given they are selling liquor already as well.
So far, Couche-Tard has not announced the name of any partnerships which would supply marijuana products to its stores.
The provincial government of Quebec has not announced that it will allow private companies to sell marijuana; however, it has not ruled out the possibility either.
The Quebec Government has indicated that adjustments will be made as the process of legalization of marijuana moves forward.
Couche-Tard holds enormous potential for growth if Quebec moves to allow private companies to join along with legally selling marijuana in Canada.
Canopy Growth Corp. (TSX:WEED)
Canopy (TSX:WEED) is now the largest licensed producer of marijuana in Canada. It has rapidly grown during the last year.
Besides that, it has established itself in the international market which involves many complicated and confusing regulations and laws in foreign countries.
For example, it’s illegal for individuals and local companies to grow cannabis for medical use in Germany. However, one can import the drug from an approved and reputable distributor, and Canopy enjoys that status in Germany.
Canopy has recently seen impressive growth. As one of the top marijuana stocks in Canada, Canopy gave a profit of 225% in the year 2017.
And it does not mean the company cannot grow further.
In fact, recreational marijuana is projected to be a ~$10 billion market within the next three years. Canopy is all set to take advantage of this cannabis market as it is already the biggest player in the market.
At the same time, there are people who believe that Canopy’s growth is a bubble, which can burst at any time; therefore, the company should proceed very carefully.
However, majority of the investors still believe that Canopy is a great option for investment and one of the top marijuana stocks in Canada, which will uplift the emerging cannabis industry.
These three companies clearly have the distribution, partnerships, or resources to potentially position themselves among the top earners in the upcoming legal marijuana industry in Canada.
While execution, permits, and regulations will play a big role in the future for these three companies, it’s a curious and exciting time for these companies alike as they are set to tackle marijuana legalization in Canada.