We’ve been talking about it for months.
And now we’re just seven days away.
Canada has legalized recreational marijuana nationwide, and that law that goes into effect Oct. 17 – exactly one week from today.
That means any adult over 18 will be able to just walk into a dispensary and buy up to 30 grams of cannabis. That could be flower, oils, or – in some places – seeds and plants.
And that could make you a multimillionaire by this time next year.
Now, there are a few hiccups here – as expected.
There aren’t as many dispensaries as we’d like.
Ontario and Nunavut – Canada’s most and least populated provinces, respectively – will have no stores open Oct. 17. British Columbia has one store for its 4.8 million residents, and the Northwest Territories will be home to just six government-run stores – about one per 7,420 residents.
But in the age of online shopping, that’s not really a concern.
While the start to legal cannabis may be a little slower than expected, it won’t stay slow for long. Manitoba has set a goal to have 90% of residents live within 30 minutes from a dispensary. Ontario is working on opening as many as 40 stores. Already, hundreds of companies have applied to be retailers.
So, what’s the reason for the slowdown, if everyone seems to be excited about the legalization?
For one thing, each province has its own set of rules. And many cities and counties in those provinces have their own sets of rules as well.
Plus, in June, Ontario decided that cannabis stores should be privately owned. That was a smart move – but it did reset the time line some.
Online sales are expected to open huge and surge from there. Retailers are expected to spread like, well, weeds in the biggest cities.
We’re talking a country of 37 million people. And a market that – when you add in the growers, the value-added product makers, the testing labs, security, tourism, exports, and all the rest – could soon reach $22.6 billion, according to Deloitte.
No wonder multinational beverage, tobacco, and pharmaceutical businesses are now partnering with, or investing in, Canadian cannabis companies.
As legal cannabis in Canada arrives in just seven days, they all should see a significant increase in revenue.
So adding the best Canadian pot stocks to a portfolio makes sense – now, before legalization hits.
Cheers and good investing,
Michael A. Robinson