Mark your calendars for June 7.
That’s the day the Senate of Canada is scheduled to vote on bill C-45, which will finally, officially legalize recreational cannabis in that nation.
This law is widely expected to easily pass.
And after Canada opens up that recreational market later this summer, New Frontier Data anticipates it will be a $6.7 billion market this year alone.
To me, that makes June 7 a crucial date for legal marijuana businesses – and their investors.
And that’s why I’m sending some of my team to the Lift & Co. Cannabis Business Conference in Toronto later this week.
After all, studying the marketplace, meeting with key industry insiders, and figuring out which companies are best positioned to take advantage of such extraordinary profit catalysts is what we do here – day in and day out.
Many of the industry’s leading lights – top CEOs, venture capitalists, and technical experts – are flocking to this conference. And we’ll be there with them to gather the sort of under-the radar-insights that can result in big gains for investors like you.
In fact, I sat down with one insider, the executive chairman of diversified cannabis company Emerald Health Therapeutics Inc., on the eve of the Toronto conference to get his insights. During our conversation, Dr. Avtar Dhillon let me in on his game plan for the conference – and what he’s expecting throughout the rest of 2018.
Global spending on legal cannabis will hit $57 billion by 2027, according to Arcview Market Research, and the “first movers” in this space – both marijuana companies and their early investors – are going to reap the biggest rewards.
A View From the Inside
Dr. Dhillon is heading to the Lift & Co. Conference, too, so I expect my team to pick up more insights from him in the coming days.
Besides heading up British Columbia-based Emerald Health, Dr. Dhillon was also just appointed board chair of the Cannabis Canada Council. This industry group is the result of a merger between the Cannabis Canada Association and the Canadian Medical Cannabis Council.
In his new position, Dr. Dhillon has been hosting business and government officials from around the world, and they’re all interested in seeing how Canada is setting up its cannabis industry ahead of full legalization.
This legalization run-up has given Canada’s pot companies a chance to get settled ahead of the competition in the United States and elsewhere. And it gives them a tremendous growth opportunity as they’re setting up deals internationally as other countries legalize marijuana, Dr. Dhillon tells me.
“There’s a lot of money out there that has not had a chance to partake in where this industry is going,” Dr. Dhillon says. “It’s not too late. One of the lowest hanging fruits is going to Canada for established, public entities that have gone through regulatory scrutiny.”
I couldn’t agree more.
But let’s face it: it’s been rough so far this year for pot stock investors – and so I grilled Dr. Dhillon about his industry’s near-term prospects.
He didn’t blink. While he knows investors aren’t happy about cannabis companies’ sharp drop early this year, he was quick to point out three big catalysts – “ignition points” – that are going to lead to soaring pot stock profits – and share prices.
- A Fully Legal Great White North: Canada is the second-largest single market for legal cannabis in North America behind California, according to Arcview Market Research and BDP Analytics. Canada’s total legal weed market – when you add in the growers, the value-added product makers, the testing labs, security, tourism, exports, and all the rest – soon could reach $22.6 billion, a Deloitte study notes. “Legalization is one of the greatest opportunities in the world at this point and in the foreseeable future,” Dr. Dhillon says.
- Big Moves in D.C.: Dr. Dhillon is, like me, very excited about political and legal reform in the United States as an “ignition point” for higher profits. Legislators from both political parties are collaborating to keep the feds’ hands off marijuana in legalized states, to legalize industrial hemp, and to license banks to handle the billions generated by legal cannabis sales. And that’s not even including the fact that citizens in a host of states are set to vote on legalization bills this fall. About 63% of U.S. voters now support fully legalizing marijuana, according to the latest poll by Quinnipiac University. Support for medical marijuana is effectively universal – 93% of those polled approve. “The key thing in my mind is when, in the U.S., growers can grow and sell pot and put the money into a national bank,” Dr. Dhillon said. “That’s when the big money is going to come in.”
- The First $1 Billion Cannabis Drug: Finally, Dr. Dhillon sees a potential Biotech Blockbuster as another huge “ignition point.” In late June, the U.S. Food and Drug Administration is expected to give final approval to the cannabis-based epilepsy treatment Epidiolex for the U.S. market. In mid-April, an FDA advisory committee voted 13 to 0 in favor of Epidiolex as a treatment for seizures related to two rare forms of epilepsy. Overturning this type of unanimous recommendation would be absolutely extraordinary. “I don’t see any barriers to seeing this approved,” Dr. Dhillon says. And when this happens, it’s going to help change sceptics’ minds about the medical usefulness of cannabis-derived pharmaceuticals. British company GW Pharmaceuticals plc (Nasdaq ADR: GWPH) developed the drug, which I expect to reach $1.7 billion in yearly sales by 2026. That’s going to ignite not just GW, but the entire “ecosystem” of medical marijuana and cannabis-based biotech.
Now, I’ll be back soon – with my some of my team’s insights from the Lift & Co. Conference. I know they’ll be talking to Dr. Dhillon – and I hope they get a chance to chat with some of these folks, too.
For instance, John Clare, director of policy for the Canadian government’s Cannabis Legalization Regulation Secretariat, and Chris Friel, mayor of Brantford, Ontario, will be there to provide their insiders’ perspective about the regulatory landscape.
And Hugo Alves, president and director of leading industry advisory Wheaton Income, and John Kagia, vice president of industry analytics at New Frontier Data, will be at the conference to discuss the lucrative expansion of cannabis into international markets such as Germany and Australia.
Those are two big trends on my radar. And they should be on yours, too.
So look out for more “from the inside” news from us as these exciting trigger dates approach.
I hope to see you there soon – where my members are using tech, legal cannabis, and cryptocurrency plays to build their wealth portfolios to heights they never imagined.
And I’ll see you back here on Friday.